Is it legal for a company to request all personal information from a Power of Attorney before releaasing funds?

A bank is requesting all personal information (i.e. SSN, date of birth, etc.) from a POA in order for him to receive the funds to pay for the expenses such as the nursing home.

Asked on August 30, 2011 Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, it is not only legal for the bank to request all pertinent information concerning the person holding the power of attorney to make sure that the money is being distributed to the authorized person to pay bills, but is also a very prudent business practice to do so as well.

By complying with the bank's requirements, the bank is protecting itself from any future claims of negligently releasing monies of its customer to a third party who is not authorized to receive such. By obtaining the date of birth, social security number, name, address as well as other pertinent information of the attorney in fact, the bank is also cross checking to make sure that the person claiming to be entitled to receive the money is authorized to receive such.

Good question.


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