by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

At one time a power of attorney and a will were all the estate plan that most people needed. Today this no longer true.

Back in the 1990’s part of the federal government made a new rule that resulted in powers of attorney which are more than 90 days old to not be honored by brokerage firms, mutual fund companies, and most recently by banks.

There is no law that says a bank or other financial company can ignore or refuse to take your power of attorney. They still often refuse to allow the use of an old power of attorney document. These financial institutions would like your chosen agent to go to court. They would like a judge to tell them that they must follow the instructions of your agent.

If this happens and they make a mistake or the power of attorney was revoked in the past then the financial institution is off the hook.

All of this makes a financial power of attorney less helpful than it once was.

I still recommend that everyone have a power of attorney but it can no longer be relied upon as the centerpiece of your estate plan

By Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com 773-905-1193