CAN A POA BE ALSO A BENEFICIARY IN A CHECKING ACCOUNT?

POA laws can vary by state, but in Illinois the account owner can name the POA as beneficiary, but the POA CANNOT change account ownership or beneficiaries. In other words, the POA cannot come in, say he/she is acting on behalf on the account owner and name him/herself (or anyone else) at beneficiary. We would need the account owner to make this change in person.

Perhaps Texas is just catching up to this. In a recent case (Armstrong and Kemp v. Roberts, Garrison, Garrison and Buckley, yes, I'm shortening it,) overturned a district court decision and held that an agent acting under a POA may not open POD accounts in the name of the owner with the agent naming themselves as a beneficiary.

We are located in Florida, and in reference to the agent opening the account and assigning themselves as beneficiaries, in this case, the owner was the one authorizing this status. In addition, they seem to be father and son, yet the father(principal) does not reside in the United States, and the son (agent) does.

Andy - any chance you have a link to the Armstrong/Kemp v. Roberts, Garrison...?

Thanks!

Milby, be sure to check your PMs.

I've seen POA documents that specify that the agent has authority to name beneficiaries - including the agent. Most, however, are not that specific and would generally not allow the agent to name him/herself or anyone else as a beneficiary. When it states "my agent can do anything I would do if I was present" - we don't know that the grantor would name the agent (or anyone else) as a beneficiary.

Yes, in Florida, a person named as a POD beneficiary can also serve as an attorney-in-fact. The critical point is raised in your second post, can the attorney-in-fact appoint himself as a POD beneficiary?

Florida law is pretty clear on this with a durable POA:

(b) Notwithstanding the provisions of this section, an attorney in fact may not:

[abridged]

5. Create, amend, modify, or revoke any document or other disposition effective at the principal's death or transfer assets to an existing trust created by the principal unless expressly authorized by the power of attorney;


If it's not a durable POA, it cannot be done. If it's a durable POA and it explicitly grants the authority, it can be done. Nothing is assumed.

THANK YOU!!