Skip to content

Can AIF Also Be A Beneficiary On An Account?

Question: 
Can AIF Also Be A Beneficiary On An Account?
Answer: 

by Brian Crow: Unless the power of gifting funds is specifically provided to the attorney-in-fact, generally they cannot add themselves as beneficiary to an account or make any changes to ownership.

If the prinicpal has named the same individual to be a beneficiary and also act as their attorney-in-fact, this is permissable.

Answer: 

by Ken Golliher: Check your state law. I am familiar with the multiple party account statutes in several states and none would prohibit an attorney-in-fact from being a POD beneficiary. However, the issue is whether there is such a prohibition in your state.

If your question were "Can an attorney-in-fact name himself or herself as a POD beneficiary?" my answer would have been a simple "No," with more encouragement to check the law of your state. In one that I know of, it is flatly prohibited unless the POA expressly grants the authority. In any other, I would suggest that an attorney-in-fact is a fiduciary and general fiduciary principles would prevent him from acting in a way to benefit himself.

Although it too is generic, not driven by the law of a particular state, the CFPB publication on Powers of Attorney is very insightful.

First published on 02/24/2014

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics