Your Money Held Hostage! (Part I)
Can they really hold my money?
Imagine this situation. Your Mom is in a hospital or nursing home and needs money to pay a bill. Since she is incapacitated, she is not able to walk in the bank, get the money and pay it herself – but fortunately she has named you as her attorney-in-fact under a power of attorney. So not to worry – all is well. Or so it seems.
You run to the bank with Power of Attorney in hand and ask for the money to pay the bill. You then hear something like “We can’t release the money until we have had our attorney review your Mom’s power of attorney to see if it specifically authorizes you to withdraw the money for the purpose you stated?”
“What?! How long will that take”, you ask? Banker says, “We don’t know. Maybe a week or two”. You say, “But we need the money NOW! After all, it is my Mom’s money. And she did entrust ME with the responsibility to pay her bills.”
Banker says, “Sorry”.]
Can they do that?!!! There have been several cases lately where that is exactly what happened. Where either a spouse or one of the children tried to act pursuant to the parent’s power of attorney and was refused access to money by a brokerage house, bank or other financial institution.
What does Arkansas law say about this?
Stay Tuned for Our Next Blog Post!