In order to do the right thing by them, I had advised my parents to establish enduring powers of attorney (EPOAs). A few years back, our mother made a power of attorney and last year, recognizing her declining mental state due to age-related dementia, we invoked the EPOA.
The problem begins with the fact that my sister and I are joint attorneys under this EPOA arrangement. Banks and other financial firms insist that both attorneys must be physically present in the branch to carry out any transactions when working with a joint EPOA.
Getting one bank to record the EPOA on our mother’s accounts took us 57 business days and a couple of formal complaints. Another complaint process is underway, as they failed to deliver the promised monthly statements, whereas we don’t have online access permission as joint EPOA holders.
Our dealings has made us reach two determinations:
1. The so-called “service-improving” (and cost-cutting) practices adopted by banks are making it extraordinarily difficult for joint attorneys to handle the dependent’s matters.
2. Financial institutions including banks have insufficient mechanisms for operating EPOAs, with forms meant for customers being handed to be filled out by attorneys. Banks are also inadequately staffed and systems insufficiently modified to properly handle EPOAs.
The reasons why I’ve penned this letter are:
1. To inform those who have a joint EPOA in place of the possible problems that they could encounter;
2. To notify solicitors about these challenges (our solicitor was taken aback by these restrictions);
3. My mother has shared with us her wishes of me “managing her finances” while my sister would take care of her health decisions. Are there any chances of amending the EPOA following its invocation?
Mr J.F., via email
Your frustration in trying to make the right decisions for your parents and the hardships you’re facing are quite evident. Starting off, does a multi-attorney enduring power of attorney mean that you have to depend on the other attorney for every basic function, such as a bank operation? Not necessarily, but it does necessitate foresight and planning.
Upon completing the power of attorney (POA) document, your parents were encountered with a series of crucial decisions. One such decision dealt with whether they wanted their attorneys to act in unison (“jointly”) or independently and together (“jointly and severally”).
If your mother, possibly under her legal consultant’s supervision, opted for ‘jointly,’ then both attorneys would have to be physically present for every elementary transaction. This decision would unfortunately leave you unable to utilise online banking due to certain Irish bank restrictions.
However, had she selected ‘jointly and severally,’ either of the attorneys could perform duties without the physical presence of the other, which would have opened the option for at least one attorney to avail online banking services with every Irish bank.
Regardless of the approach taken, financial establishments, including banks, would mandate the presence of both attorneys for the official verification of documents after POA registration.
The dilemma here rests on how the initial document was filled out, demonstrating the importance of precision at that stage of the process. You would have been notified at that juncture and most likely given a copy of the document for reference.
Correcting the issue at that stage was possible. However, presently, it’s an unalterable circumstance. Your mother, unfortunately, lacks the mental capability to sign such a document now, and the current one has been registered already. This leaves you in an unfortunate position. Although some might opt out from activating the POA understanding its restrictive nature, it comes with its baggage of complications.
Moreover, regardless of your mother’s belief, enduring power of attorneys encompasses financial, personal and property matters, steering clear of health-related issues. Instructions for healthcare assistance needs to be separately stated.
If this information is news to your solicitor, I would strongly suggest seeking a new one. This knowledge is fundamental and should be well-understood by them. Their professional peers would likely agree.
In reference to the banks, your views are accurate. These enduring POA documents are legal and are appropriately dealt with by a specialist department with a niche understanding that every bank possesses.
Branch personnel are typically generalists, with few capable exceptions, as I have experienced myself. Contrary to perceptions, my interaction with a specialist department at one bank was less than satisfactory.