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Power Of Attorney Issues At TreasuryDirect And At Financial Institutions

Thursday, July 5, 2012 - 5:35 AM
Even if you follow your state law on what's required for a Power of Attorney, it may not be good enough for the TreasuryDirect. I thought this Bogleheads thread would be useful to highlight for those who have family members with savings bonds and TreasuryDirect accounts:
TreasuryDirect, long the bane of many of us, has thrown an interesting twist. They refuse to accept my parents' general power of attorney documents. Their state law requires a PoA to be notarized and recorded with the county recorder of deeds, which has been done. TreasuryDirect says they require a medallion signature guarantee on a PoA.

Other Boglehead members reported their issues with TreasuryDirect. Here's an excerpt from nonnie's post:
My experience with TreasuryDirect is that they can do anything they want to do. After months and months of increasing demands/requirements--each time I satisfied one, they wanted something else--we abandoned $750 of inherited EE bonds.

But it may not just be an issue with the TreasuryDirect. A few Boglehead members warn about POA issues they've seen. Here's an excerpt from wjo's post:
In my experience, most financial institutions will refuse a POA unless compelled to do so. They strongly prefer their own forms designating a POA. They seem to have judged that the risk of accepting a POA incorrectly is greater than the cost of not accepting them.

5
Ken TuminKen Tumin5,467 posts since
Nov 29, 2009
Rep Points: 124,996
1. Thursday, July 5, 2012 - 8:34 AM
I can understand Treasury Direct being hard-nosed about PODs but what is meant by "their forms of PODs" when speaking about banks and other institutions?  All the banks do is type the person's name either on the front or on the back of the CD as the beneficiary and I am told all the person has to do is show up with ID to verify they are the POD person and a copy of the death notice of owner and the account becomes theirs.  There are no special forms to fill out to make someone a beneficiary or POD on a CD that I know of.  If there were, I would certainly have insisted on getting a copy of them for my records.
3
paoli2paoli21,365 posts since
Aug 10, 2011
Rep Points: 5,982
2. Thursday, July 5, 2012 - 12:35 PM
Paoli2

 

P ower  OA ttorney
2
RicochetRicochet132 posts since
Jan 19, 2010
Rep Points: 362
3. Thursday, July 5, 2012 - 1:35 PM
Ricochet:  I guess I need new glasses.  I really thought that was about PODs.  At least you were a gentlemen in correcting me.  Thank you.  Shorebreak:  Seeeeee  I can be shown I am stupid in a nice way. :)
2
paoli2paoli21,365 posts since
Aug 10, 2011
Rep Points: 5,982
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