It doesn’t matter if you are going abroad, growing old, or just don’t have time to look after your bank account; you’d still need to write a proper power of attorney letter to enable the person you’re trusting your financial affairs to act in your place. The letter is simple enough to write; the trick is it must be clear and concise. The basic format includes two main parts of the letter.
1. The heading: This includes the name of the state and county, the date, the donor’s information. the name and verifiable identification of the attorney being appointed, and the bank’s information. In the heading, the donor is declaring that he or she is appointing his/her trusted attorney to act in his/her place, stead or behalf or as an individual with regards to the bank account and financial affairs in question.
2. The main body: This is the part which includes the extent and limits of the power given to the attorney. It includes all the acts he/she is allowed to do on the donor’s behalf, or as an individual him/her-self. This part must be precise and concrete, and must not leave anything vague.
3. You need to also mention the time period the power of attorney shall remain affective, and If it shall remain effective if you lose physical or mental capacity.
Talk to the bank
You need to be aware of the bank’s policies for donating one’s power of attorney. Some banks require that you have the power of attorney letter registered by the state, and some do not accept power of attorney letters and instead change the account into a joint account, in which the attorney is added as an owner. Be sure you’re aware of any and all complications that the bank may toss your way.
State of: __________________________________
County of: _________________________________
LET IT BE KNOWN TO ALL PRESENT AND TO ANY IT MAY CONCERN
I, (donor/ principal name), of (street address, city & state), hereby declare, In sound mind and body that this day, (date) I make constitute and appoint (attorney full name), of (attorney’s street address, city & state) as a lawful, trusted and faithful attorney to act in my stead, place and on my behalf and as an individual with regard to this bank account (bank account no.), I hold in (bank name), (branch name and no.) of the state of (state name). The attorney shall do all that is caused to be done in my stead and is lawful and ethically sound from but not limited to the following:
1. The attorney shall have full access and control of the principal’s checkbook and sign all documents and or slips in the Principal’s place.
2. The attorney shall be privy to all third-party services offered by the bank such as Visa or MasterCard.
3. The attorney shall be the first one contacted for any business related to the bank or the bank account in question.
4. The attorney can freely deposit or withdraw cash from the bank account in question.
5. The attorney can have free access to any and all of the bank lockers, or other facilities offered by the bank related to the bank account in question.
6. The attorney can act as an individual and his decisions are autonomous so all the acts do not and will not need confirmation or attestation from the Principal donor.
This power of attorney letter is in effect from this point to the death of the Principal Donor unless revoked by the Principal Donor in writing.
Parties of this letter
Executor’s Name and Address: __________________________
Executor’s Signature and Thumb Impression: _________________________
Attorney’s Name and Address: ___________________________
Attorney’s Signature: ___________________________
Name and Signature of witness 1: _____________________
Name and Signature of second witness 2: ____________________
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