Power Of Attorney Question and Answers
True or False: In order to be approved, POA documents must expressly authorize authority over financial activities and bank accounts.
Explanation:
A power of attorney (POA) for banking transactions permits a dependable agent to manage your bank account(s) on your behalf. Your power of attorney must expressly specify that you wish to set it up so that someone can conduct financial transactions on your behalf.
True or False: Both a POA and a letter of attorney have the same function.
Explanation:
Legal documents that grant someone else power or authority include powers of attorney and letters of authority. Law and legal documents are already complex, and in this case, the similarities between the functions of a letter of authority and a power of attorney add to the uncertainty.
True or False: An example of "real" property is a bank account.
Explanation:
Real property, which mostly includes houses, buildings, and lands, is immovable. The term "real estate" refers to all real properties collectively.
True/False: A "generic" POA automatically enables an agent to modify the Member's IRA's beneficiary designation.
Explanation:
A POA often does not give the authority to modify an IRA account's beneficiary designation. Furthermore, a POA agent is not permitted to modify the POA under normal POA rules.
True or False: If the Member becomes unable or disabled, the "durable" POA expires.
Explanation:
Durable powers of attorney do not end only because the principal is pronounced unable; they continue to function even after this. A prerequisite for a durable power of attorney is the principal's intention that the authority granted to the agent shall be exercisable, despite the principal's ensuing incapacity.
True or False: A POA remains in effect when the member who signed it passes away.
Explanation:
After death, the power of attorney expires.
The majority of people believe that once a loved one passes away, the power of attorney holder is still able to handle the estate's administration. That can't be right. When the principal dies, the power of attorney expires.
True or False: CME demands that the Credit Union receive all POAs in writing.
Explanation:
True, CME requires that all POAs be presented to the credit union in writing.