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Can Durable POA Conduct Transaction w/o Owner?

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We have a joint account with durable POA and a Trust as POD. Two CDs came due and the POA wanted to come in to change the term from 30 months to 6 months. This entails closing old CD and opening a new one. Everything else remains the same. ( POA and POD) Can a durable POA conduct that transaction on behalf of the account owner?

There is no way to answer your question without reading the POA. The term "durable" does not indicate anything specific regarding the content of a POA except for the fact that it says it will remain in effect even if the principal is incapacitated.

The issue here is does the attorney-in-fact have the power to establish accounts with POD beneficiaries. Generally, the answer would be a simple "No," but the counter argument here would be that the attorney-in-fact is simply changing the length of existing accounts without changing their POD provisions.

First published on 7/15/13

First published on 07/15/2013

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