Results 1 to 9 of 9

Thread: Your financial power of attorney may be worthless when you need it the most

  1. #1
    Senior Member
    Join Date
    Mar 2014
    Posts
    816

    Your financial power of attorney may be worthless when you need it the most

    MarketWatch publishes an article similar to this every few years, but it's one of those lessons that can never be repeated enough.

    Summary: Well-meaning financial planners and legal professionals insist on clients’ having valid state legal documents, including a financial power of attorney (POA). But those legal documents — signed, witnessed and paid for — are being rejected by financial-services companies, whose compliance departments want their own version of a POA to protect their interests. This is true despite the fact that the Uniformed Power of Attorney Act was adopted in 2016 in the Uniformed Probate Code (UPC) of the U.S.

    URL: https://www.marketwatch.com/story/yo...st-11630687394

  2. #2
    Senior Member Yppej's Avatar
    Join Date
    Dec 2010
    Posts
    6,949
    Ditto beneficiaries. Everyone at work had to create an online account for the 401K plan and designate a beneficiary there. Your will is not good enough, as the mother of an employee who died found out.

  3. #3
    Senior Member
    Join Date
    Mar 2014
    Posts
    816
    Quote Originally Posted by Yppej View Post
    Ditto beneficiaries. Everyone at work had to create an online account for the 401K plan and designate a beneficiary there. Your will is not good enough, as the mother of an employee who died found out.
    And oh yeah.... There are special IRS rules for people who inherit a 401(k), IRA, etc. Rules about mandatory minimum withdrawals and stuff like that that the inheritor has to follow to avoid IRS penalties.

  4. #4
    Senior Member Teacher Terry's Avatar
    Join Date
    Dec 2013
    Location
    Nevada
    Posts
    11,730
    Luckily when I had POA which I printed online and only needed 2 witness to sign for my friend I encountered no problems. I also did the medical one the same way. I shared the financial POA with her stepson. I guess Nevada is easier.

  5. #5
    Senior Member Teacher Terry's Avatar
    Join Date
    Dec 2013
    Location
    Nevada
    Posts
    11,730
    Yppej, what finally happened in the case you mentioned?

  6. #6
    Senior Member Yppej's Avatar
    Join Date
    Dec 2010
    Posts
    6,949
    Quote Originally Posted by Teacher Terry View Post
    Yppej, what finally happened in the case you mentioned?
    I don't know, but HR told me that's the reason we needed to designate a beneficiary specifically with the 401K administrator.

  7. #7
    Senior Member
    Join Date
    Jan 2011
    Posts
    6,915
    My understanding was that things like beneficiary designations or transfer on death titles almost if not always are prioritized over wills.

  8. #8
    Senior Member iris lilies's Avatar
    Join Date
    Mar 2013
    Location
    Always logged in
    Posts
    20,067
    Quote Originally Posted by LDAHL View Post
    My understanding was that things like beneficiary designations or transfer on death titles almost if not always are prioritized over wills.
    Thatís my understanding as well, although I suppose thatís regulated state by state?


    Tenge thanks: I was annoyed when Edward Jones wanted Social Security numbers for our beneficiaries. The other brokerage accounts did not require that. Didnít want to ask beneficiaries for their Social Security numbers because I donít want them to know their beneficiary since itís unlikely they will actually see any of the money, we will probably have spent at all.

    I think I ended up telling the Ed Jones people look just deal with it this is the information I have on his beneficiary their name, their relationship with me and their birthday. Thatís good enough.

  9. #9
    Senior Member beckyliz's Avatar
    Join Date
    Jan 2011
    Location
    Topeka, KS
    Posts
    800
    Quote Originally Posted by GeorgeParker View Post
    MarketWatch publishes an article similar to this every few years, but it's one of those lessons that can never be repeated enough.

    Summary: Well-meaning financial planners and legal professionals insist on clients’ having valid state legal documents, including a financial power of attorney (POA). But those legal documents — signed, witnessed and paid for — are being rejected by financial-services companies, whose compliance departments want their own version of a POA to protect their interests. This is true despite the fact that the Uniformed Power of Attorney Act was adopted in 2016 in the Uniformed Probate Code (UPC) of the U.S.

    URL: https://www.marketwatch.com/story/yo...st-11630687394
    Each state chooses whether or not to adopt a uniform law; not all do and those that do, may decide to change, add or delete from it.
    "Do not accumulate for yourselves treasures on earth, where moth and rust destroy and thieves break in and steal. But accumulate for yourselves treasure in heaven, where moth and rust do not destroy, and thieves do not break in and steal. For where your treasure is, your heart is also." Jesus

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •