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

UPDATED: Aug 30, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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