Resolving Power of Attorney Problems

Several years ago, I was contacted by an individual serving as an agent under a valid Michigan power of attorney. 

She explained that her aunt, now incapacitated, had nominated her as agent in the power of attorney, but since the document was signed, she had married and moved.

She said that the bank would not let her use the power of attorney without appropriate identification. Her valid Michigan driver’s license provided her married name and new address. She told me that she even tried to present a copy of her marriage license to the bank as proof of her identity.

Banks and other institutions, concerned they may be sued if they accept a power of attorney that turns out to be fraudulent have imposed their own set of internal rules about document acceptance, and consumers had little or no recourse without going to court.

The new Uniform Power of Attorney Act, signed into Michigan law last fall and effective in Michigan as of July 1, 2024, provides a remedy. The law states that a person or business asked to accept an acknowledged power of attorney under the UPOAA may request and may rely, without further investigation, upon an affidavit providing statements of factual matters signed by the agent or attorney, or a written opinion letter from an attorney regarding applicable matters of the law.

To stop the banking industry from requiring such affidavits or opinion letters from everyone before accepting a valid and acknowledged power of attorney, there are protections afforded Michigan residents by the UPOAA. To avoid unnecessary requests, the law provides for payment of attorney fees and costs if the request is frivolous.

JO ANNE HINDS PLC