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

[GeorgeParker]

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/your-financial-power-of-attorney-may-fail-you-when-you-need-it-most-11630687394

[Yppej]

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.

[GeorgeParker]

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.

[Teacher Terry]

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.

[Teacher Terry]

Yppej, what finally happened in the case you mentioned?

[Yppej]

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.

[LDAHL]

My understanding was that things like beneficiary designations or transfer on death titles almost if not always are prioritized over wills.

[iris lilies]

My understanding was that things like beneficiary designations or transfer on death titles almost if not always are prioritized over wills.
That’s my understanding as well, although I suppose that’s 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. Didn’t want to ask beneficiaries for their Social Security numbers because I don’t want them to know their beneficiary since it’s 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. That’s good enough.

[beckyliz]

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/your-financial-power-of-attorney-may-fail-you-when-you-need-it-most-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.