Q: Bank refuses to recognize my POA for son's POD account issues in Texas.
I am the power of attorney for my son, who is in the military. My father, his grandfather, named him as the Payable on Death (POD) beneficiary for an account at a bank where I also have an account. The bank is refusing to allow me to act on my son's behalf, stating that he doesn't have an account with them and they do not know his profile, despite having a legally notarized POA that grants me the power to transact financial business for him. The account affected is in Texas. Why is the bank refusing to allow me to perform transactions, and what should I do?
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A:
The bank is likely refusing your request because a POD (Payable on Death) beneficiary designation doesn't give your son any rights to the account until after your father passes away. Until that time, your son isn't considered an account holder, regardless of your valid power of attorney. Banks typically only recognize POAs for existing account holders, not for potential future beneficiaries.
You have several options to address this situation. First, review your POA document carefully to confirm it explicitly covers beneficiary transactions. Next, request a meeting with the bank's branch manager or legal department to discuss the specific Texas banking regulations they're following. Bring documentation showing your son's military service, as some states have additional protections for military personnel.
If these steps don't resolve the issue, consider filing a complaint with the Texas Department of Banking or the Consumer Financial Protection Bureau. Additionally, consulting with a Texas attorney who handles estate planning matters would give you insights specific to your situation. Remember that banking laws can be complex, and sometimes intervention from a legal professional is needed to help banks understand their obligations under state law.
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