What Can I Do If Someone Refuses to Honour My Power of Attorney?
Holding a Power of Attorney (POA) can be an essential safety net, allowing a trusted individual to manage property, finances, or personal care decisions if you are unavailable or incapacitated. Yet problems arise when banks, hospitals, or other institutions decline to accept a valid POA. This can leave you—or your appointed attorney—scrambling to prove the document’s legitimacy and maintain control over vital decisions. Understanding why an organization might refuse a POA and what remedies exist can be crucial for ensuring your rights and intentions are respected.
The Answer
Yes, you can take steps if an institution or individual will not recognize a valid POA. Reasons for rejection sometimes include outdated forms, missing signatures, or doubts about the principal’s (the person granting the POA) competence at the time of signing. In other cases, organizations have internal guidelines or require POAs drafted on specific forms. If your valid document is being refused, you might clarify its validity by providing supporting paperwork, referencing local legal statutes, or consulting a lawyer. When reasonable efforts fail, legal intervention may be necessary to protect the principal’s interests or confirm the POA in a court proceeding.
Across Canada, POA rules often appear in provincial legislation such as Ontario’s Substitute Decisions Act or British Columbia’s Power of Attorney Act. In the United States, each state has separate statutes that deal with POAs, sometimes requiring additional steps like notarization or specific wording. Regardless of location, a valid POA should grant the attorney (the agent) the necessary authority to act on the principal’s behalf, but acceptance of that authority sometimes demands extra proof.
Key Considerations
- Type of POA
There are different kinds of POAs, such as a continuing or enduring POA (effective even if the principal becomes incapable), a springing POA (active only under certain conditions), or a limited POA (covering narrow tasks or times). If an institution is unsure which type you hold, it may ask for more documents confirming its scope or timing. Providing a short summary or letter from a lawyer can clear up these doubts. - Outdated Forms or Jurisdictional Variations
Forms that meet legal standards in one province or state might not fit neatly into another region’s requirements. For example, a Canadian bank that receives a POA drafted in Texas might pause to verify whether it meets local rules. Likewise, a form signed many years ago might no longer reflect current laws or might lack the proper witness statements. Ensuring the POA is regularly updated and consistent with the local legal system can prevent rejections. - Concerns About Capacity
Some disputes arise when there is doubt regarding the principal’s mental capacity at the time of signing. If someone challenges the POA by claiming the principal was not aware of what they were signing, the institution may hesitate to accept it. In that situation, medical evidence or sworn statements can help show the principal understood the document’s meaning. - Potential Abuse
Institutions worry about misuse of authority or financial exploitation, which can happen if an attorney tries to withdraw large sums of money or make questionable decisions. If the document raises suspicions—like unclear instructions or unusual transactions—the bank or hospital may insist on extra checks. While inconvenient, these checks aim to protect the principal, though they can cause friction if you are simply trying to manage finances legitimately. - Internal Policies of Organizations
Banks and hospitals often have standard protocols that staff must follow, even if a POA appears valid. A financial institution could request that your attorney use the bank’s own POA forms or supply extra identity documents. If the attorney refuses or cannot comply, the institution may continue to reject the document, at least until the policy requirements are met. - Validity and Execution Requirements
A POA must be signed, dated, and witnessed as required by local law. For instance, some provinces demand two independent witnesses for enduring POAs. Certain states in the U.S. might require notarization and, in some cases, a separate acceptance provision by the agent. If any step was overlooked, the organization may doubt the document’s legitimacy.
Legal Remedies
- Proof of Validity
If an organization refuses to accept the POA due to concerns about its execution, you might provide evidence that all steps were properly followed. This could include witness affidavits, notarized certificates, or references to specific legislative clauses. Where necessary, a lawyer can write a letter explaining how the POA meets the region’s standards. - Court Application
In some disputes, it may be necessary to apply to a court for an order declaring the POA’s validity. This process can confirm that the principal had capacity and that all rules were met. Once a judge declares the POA valid, institutions typically have little room to argue otherwise. However, court applications take time and may come with legal expenses, so they are often considered a last resort. - Complaints to Oversight Bodies
If the institution is regulated by a specific body (e.g., a bank overseen by a federal or provincial regulatory agency), you might file a formal complaint. Document every interaction, ask for written explanations of the refusal, and then present your grievance. Oversight authorities sometimes step in to clarify how a valid POA must be recognized. - Mediation or Negotiation
In some cases, rather than rushing to court, mediation can help. A neutral third party can assist you and the institution in finding a workable solution. For instance, the organization might agree to accept a letter from the principal’s doctor confirming capacity, or the attorney could provide an additional signed statement. Mediation avoids a formal court process, saving both time and funds. - Appointing a Substitute Decision-Maker
If repeated rejections or ongoing legal battles stall matters, the principal (if capable) might consider naming another attorney who the institution deems acceptable. In certain provinces, they might even require a guardianship or trusteeship application if the principal is no longer capable. These procedures differ but can create a new legal framework recognized by the courts or relevant agencies.
What to Do Next
- Review the Document
Start by examining your POA to ensure it meets current legal standards. If it was drafted years ago, laws might have changed. A quick consultation with a lawyer can reveal whether the document’s language or witnessing process is outdated. - Ask for Specific Reasons for Rejection
When a bank or hospital refuses your POA, find out precisely why. The refusal might stem from something fixable, like missing information or a requirement for notarization. A brief conversation or written request for clarification can help resolve minor issues quickly. - Gather Supporting Evidence
If capacity or authenticity is at issue, be prepared to offer proof. Medical records or statements from witnesses can solidify your argument that the POA was signed properly and voluntarily. Keep track of all documentation and communications. - Seek Legal Advice Early
A lawyer with experience in estate or elder law can guide you. They can identify the most efficient remedy, whether that’s negotiation, formal correspondence, or legal action. Early advice might prevent drawn-out conflicts later. - Remain Patient Yet Firm
Accept that institutions sometimes have strict internal guidelines. Staying patient and cooperative while still advocating for your rights often produces results. Avoid getting discouraged if you must provide extra paperwork or fill out a separate form. The goal is to move matters forward calmly and effectively. - Consider a Legal Update
If the POA is repeatedly challenged, or if you anticipate further complications, you might draft a new document that meets current best practices. For example, you can include a detailed provision indicating that the POA remains valid even after a stated trigger event (for a springing POA) or that the attorney can manage digital assets. Modernizing the text can cut down on future pushback.
Final Thoughts
A valid Power of Attorney should give your chosen attorney the power to manage important matters on your behalf. Yet institutions often run into confusion or have strict rules that create obstacles. By clarifying the document’s validity, gathering the proper evidence, and enlisting legal support when needed, you can overcome these hurdles. Although it may require persistence, taking active steps helps ensure that your intentions are respected—and that you or your loved ones can confidently rely on the POA when crucial decisions must be made.