Just an informal poll/discussion:

We're in the financial services industry and we're running into more situations where financial institutions are requiring POA's be recertified on a regular basis. We can have a POA on file and some companies will require that it be reconfirmed after a couple of years but we ran into one yesterday that requires it be recertified every 30 days. The 30 day recertification can be done with a medallion stamp if the client is not medically incapacitated, but if they're incapacitated, they have to have two letters on physicians letter head confirming it (every 30 days).

I get financial fraud is a major issue across the world so pushing back against a financial institution's legal department is a fruitless fight.

Anyone else dealing with this? If so, how often do you have to have your POA's confirmed? Experiences?

What a PITA.

On springing powers, had that occur in the past. It is a pain. Thankfully, the attorneys we work most with do a great job of getting folks to see the advantages of Durable POAs, so almost all of our clients have those in place, which don't have a recertification need.

Casey TableTennis said:

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On springing powers, had that occur in the past. It is a pain. Thankfully, the attorneys we work most with do a great job of getting folks to see the advantages of Durable POAs, so almost all of our clients have those in place, which don't have a recertification need.

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According to the financial institutions it's not mattering whether it's durable or not and it's not how it's written. They're just saying now POA's have to be recertified.

My argument is that if someone is willing to commit a crime by signing something after a POA was rescinded they could do that inside 30 days if they like. At that point it's theft and/or forgery. But the financial institutions must be so gun shy at this point that this makes more sense than them having to pursue the funds after they're stolen, or wait until someone works through the criminal system before they can make a claim to get the funds back for their client.

This is absolute overkill, ive had to deal with certain institutions that require the POA to sign an affidavit any time a change is made to the account holders profile. I think big finance is cracking down hard on fraud that took place during covid

I spent 28 years working for BoA/Merrill and have never encountered a 30 day PoA requirement. Can you tell us what exactly the PoA covers, there are almost zero reasons to have to recertify, period, much less every 30 days.

OldArmyCT said:

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I spent 28 years working for BoA/Merrill and have never encountered a 30 day PoA requirement. Can you tell us what exactly the PoA covers, there are almost zero reasons to have to recertify, period, much less every 30 days.

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The POA is all inclusive; zero limitations. The financial institution told us this before they even had the POA in hand. We've had the POA on file for 11 years and when we called the financial institution about making a change they walked us through what would be needed IF they accepted the POA and what would be needed going forward.

The 30 day recertification requirement is coming from American Funds. All we were trying to do was to add direct deposit info to a 529 so that the client didn't have to receive paper checks when tuition payment time occurs. That's when the woman told us that if the relative listed on the POA was going to be calling in each semester to request the funds they would have to have it recertified each time.

I was a bit confused when they told us we'd have to recertify right now but "ok", we've had it for 11 years and this is their first time to be exposed to it. But when she mentioned we'd have to have it done each time we wanted funds that made me start asking more questions and she eventually got to the 30 day explanation.

Another company we have used told us once that we'd have to have it recertified after 2 years. We (us and the client) didn't like it but they're based out of state as well and I thought maybe it had something to do with other states having other limitations or restrictions on ongoing POAs in place. American Funds just seems a bit over the top.