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Financial Powers of Attorney: Authority, Duties, and Bank Access

Helping with another person's money requires clarity about permission and responsibility. A power of attorney is one way to grant authority, but it is not simply a shared password or a joint account. Understand the duties that come with the role, make sure the institution recognizes the documents, and respond quickly if someone claims authority that was never granted.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

What is a power of attorney (POA)?

A power of attorney is a legal document that allows someone else to act on your behalf.

A power of attorney can be helpful to older people and others who want to choose a trusted person to act on their behalf when they cannot. You can plan ahead by creating a power of attorney to appoint a substitute decision-maker, also called an agent.

If you don’t create a power of attorney in advance, a friend or family member might have to go to court to have a guardian appointed if you become incapacitated and are no longer able to make decisions for yourself – and that process can be lengthy, expensive, and very public.

What are some situations when I might need a financial power of attorney?

A financial POA can be used as a tool to help plan for the future, including the possibility that you’ll be unable to make important financial decisions due to dementia, traumatic brain injury, or another impairment that could affect your mental function. When used for advance planning, a POA generally is “durable,” meaning it continues to be effective even if you become incapacitated.

A financial POA can also be used for short-term purposes. For example, a servicemember being deployed overseas can create a POA so someone can pay bills, sell property, or handle other business in their absence.

Protect against power-of-attorney abuse

A POA involves some risk. It gives someone else a great deal of authority over your finances without regular oversight.

A POA can be complicated, so working with a lawyer could help protect you against potential abuses. Getting help from a lawyer to name an agent under a POA is relatively inexpensive. If you’re unable to afford a lawyer, you may be able to take advantage of free legal aid programs.

POA abuse can take many forms:

  • Your agent might pressure you for authority that you do not want to grant.
  • Your agent may spend your money on themself rather than for your benefit.
  • Your agent might do things you didn’t authorize them to do – for example, make gifts or change beneficiaries on insurance policies or retirement plans.

Protect against POA abuse by:

  • Telling other friends, family members, and financial advisers about your POA so they can look out for you—and even spot a forged POA document.
  • Only appointing someone you really trust and make sure they know your wishes and preferences. In your POA, you can require that your agent regularly report to another person on the financial transactions they make on your behalf.
  • Remembering that POA designations are not written in stone – you can change them. If you decide that your agent isn’t the best person to handle your finances, you can revoke or cancel your POA.
  • Being aware of someone who wants to help you out by handling your finances and be your new “best friend.” If an offer of help seems too good to be true, it probably is.

Many states have laws in place to help protect against POA abuse by helping to ensure your agent acts appropriately and on your behalf.

Learn more about financial caregivers.

What is a fiduciary?

A fiduciary is someone who manages money or property for someone else. When you’re named a fiduciary and accept the role, you must – by law – manage the person’s money and property for their benefit, not yours.

If a family member or friend wants to name you their fiduciary to help them manage their money or property in case they’re unable to, they could do so through a power of attorney (POA). If you choose to accept this role and act on their behalf, you are required to follow the instructions and perform in accordance with the terms of the POA.

There are also other types of fiduciaries, including guardians or conservators of property, trustees, Social Security representative payees, and VA fiduciaries.

As a fiduciary, you have four basic duties:

  1. Act only in their best interest. Because you are dealing with someone else’s money and property, your duty is to make decisions that are best for them, not you.
  2. Manage their money and property carefully. You will have important financial responsibilities and must carry them out with care. You might pay bills, oversee bank accounts, and pay for things they need. You might also make investments, pay taxes, collect rent or unpaid debts, and get insurance for them, if needed.
  3. Keep their money and property separate. Never mix their money or property with your own or someone else’s. Confused records can get you in trouble with government agencies, like adult protective services, and the police.
  4. Keep good records. You must keep true and complete records of their money and property, or you could face legal consequences.

For more information on your role as a fiduciary, check out our guides to managing someone else’s money.

My family member signed a power of attorney (POA) but when I took it to the bank/credit union, I was told the POA has to be on the bank/credit union's form. What can I do?

As long as the power of attorney (POA) follows the laws of your state, banks, credit unions, and other third parties should accept it.

Ask to speak to the branch manager, a supervisor, or an attorney for the bank or credit union.

Many state laws require banks and credit unions to accept POAs except under certain circumstances: for example, if the bank or credit union believes the POA is forged, knows that the POA was revoked, or believes that the person who created the POA is being abused or exploited by the agent.

If you continue to meet resistance, you may be able to get a court order mandating acceptance of the POA – and the person refusing to honor it may have to pay your attorney’s fees and the costs of taking him or her to court.

Tip:

If you create a POA, share it with your bank or credit union in advance, to smooth the way for your agent down the road.

I went to my bank or credit union and was told that money had been taken out of my account using a power of attorney (POA) I never signed. What can I do?

Your bank or credit union may have honored a forged power of attorney.

Depending on your state’s POA law and the facts in a given case, your bank may or may not be liable for accepting a forged power of attorney. You can consult with an attorney about your bank’s liability for accepting the forgery.

Contact the branch manager immediately, report that you did not sign the POA, and request that the bank return the missing money to your account. Ask the bank staff to take a sample of your signature and have it notarized. Also, report the unauthorized withdrawal to the bank’s fraud security department, to prevent further theft from your account. Finally, report the theft to local law enforcement, and inform the bank that you are doing so.

How can I find an attorney who specializes in elder law?

You can find an attorney through the National Academy of Elder Law Attorneys (NAELA) or your local bar association. Generally, if you are 60 years old or older, you may qualify for free legal services.

If you’re age 60 and older, you may qualify for free legal assistance for seniors based on your income and assets. You can find senior legal services at your local legal services program . You can also find out about your local legal assistance programs by contacting your local Area Agency on Aging at eldercare.acl.gov or by visiting the American Bar Association. If you do not qualify for a legal aid attorney, you can find an attorney through the National Academy of Elder Law Attorneys (NAELA) or your local bar association.

The legal assistance available will vary based on your local program’s guidelines, but generally a qualified attorney will be able to help you with a variety of issues, including:

  • income security
  • Social Security benefits
  • health care, including Medicare, long-term care, and nutrition
  • housing, including eviction or issues with a landlord
  • utilities
  • protective services
  • defense of guardianship
  • abuse and neglect
  • age discrimination

Learn more about the CFPB’s resources for older adults.

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

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