A woman I will call Mary is standing at a bank counter in Weymouth. Her father had a stroke three weeks ago. His mortgage is due. She has the power of attorney he signed six years ago. The banker hands it back and says, "We can't accept this."
Nobody at the bank is being unfair. The document is valid. But the bank has its own rules, and this one does not pass. Now Mary has a choice. Fight with the bank. Hire a lawyer. Or go to probate court for a conservatorship, which is slow and costly, and the exact thing her dad signed the document to avoid.
This is a preventable problem. Here is what a power of attorney does, why banks say no, and how to get one that works.
What a power of attorney is
A power of attorney is a document where you name a person to handle money and legal matters for you. That person is called your agent. They can pay bills, manage accounts, deal with insurance, sign real estate papers, and file tax returns.
You decide how much power to give. It can be narrow, for one task on one day. Or it can be broad, so your agent can do almost anything you could do. Most estate plans use the broad kind. The point is to cover what you cannot predict.
Your agent does not own your money. They act for you. The money stays yours. When you die, the power ends. From then on, your will or trust is in charge.
A power of attorney is not a health care proxy. The power of attorney covers money. The proxy covers medical choices. You want both.
Durable or springing: the choice that causes the trouble
A durable power of attorney works the day you sign it. It keeps working if you later cannot manage your own affairs. That is when you need it most. I use this kind for almost every client.
A springing power sounds safer. It is not. It only "springs" to life after you lose capacity. Getting that proven is harder than people think. The document usually calls for a letter from one or two doctors. Banks want that letter in exactly the form they expect. Families end up chasing the right letter from the right doctor while the bills pile up.
When the chase fails, the next step is probate court. The family asks a judge to appoint a conservator. That is the exact court case the document was supposed to prevent.
For most families, durable is the stronger choice by a wide margin. Yes, you give your agent power now. But you pick someone you trust completely. And you keep running your own life for as long as you are able. The durable power takes nothing away from you. It just works the day something happens.
Why banks say no to valid documents
A power of attorney can be valid under Massachusetts law and still get turned away at the counter.
Banks are not lawyers. The person at the counter follows a policy. The policy is built to protect the bank, not to honor every valid document. Here are the usual reasons:
It is old. Many banks will not take a document more than a few years old. No law says that. Massachusetts law says a durable power stays good no matter how much time has passed. It is bank policy, nothing more.
It is vague. Broad words like "all financial matters" may not be enough. Banks want to see the exact power listed. Massachusetts courts read these documents the same strict way. An agent only has the powers the document spells out.
It is not the bank's own form. Some banks prefer their own form. They do not have to reject yours. But they sometimes do, or they add hassle until you give up.
The signature or notary block looks odd to them. Unusual formatting, a notary line in different wording, or changes made by hand can all get flagged.
It is a springing power with no doctor's letter. See above.
The result is the same in every case. You have a document that was supposed to work, and it does not.
What Massachusetts law says about a bank that refuses
Most people do not know this. If a bank unreasonably refuses a valid durable power of attorney, your agent can sue the bank for the harm it caused. The same law protects a bank that accepts a power of attorney in good faith. A bank acting reasonably has nothing to fear.
Most families never sue. By the time a case ends, the crisis is long over. But knowing the law exists is useful. Mentioning it, calmly, to the bank's compliance department sometimes gets a stuck conversation moving.
The better plan is a document the bank will not refuse in the first place.
The fix: a bank-ready power of attorney
A bank-ready document is durable. It lists the specific powers, one by one, so the bank can see the exact power for the exact task. It uses wording banks already know. It is signed in front of a notary. Notarizing is not required by law for the document to be valid. But banks expect it, and it is needed to record the document if your agent ever signs a deed for you. And it names a backup agent in case the first one cannot serve.
Then comes the step most people never hear about. File a copy with your bank now. Most big Massachusetts banks have a way to do this, even if they do not advertise it. Their compliance team reviews it in advance. When your agent walks in two years later, the document is already in the system and already approved. That is a very different conversation than waving a new document across the counter.
It is a short conversation. It is free. And it removes the single most common reason these documents fail.
Also give copies to your agents. Keep one at home where it can be found. A document locked in a drawer at your lawyer's office does nothing at 9 a.m. on a Monday when your spouse is trying to pay a bill.
For firefighters, police, and military families
For first responders, the need is sharper. Line-of-duty injury is a real risk, and the gap between "fine" and "cannot manage my affairs" can be minutes. A durable power of attorney is one of the cleanest things you can do for your family. It is not about expecting the worst. It is about making sure your spouse is not stuck in probate court while also dealing with what just happened to you.
For military families, a durable power is what lets your spouse run things while you are deployed. Base legal offices do a good job getting these signed. But they are often general forms, not written with Massachusetts banks in mind. They can run into the same problems as any other generic form.
In both cases, the answer is the same. A durable, bank-ready document, signed and handed out before the day it is needed.
The mistakes I watch for
A form from the internet. Those forms are written to fit all fifty states. They do not use the protections Massachusetts gives, and they do not anticipate Massachusetts banks. They work in theory. They fail at the counter.
Choosing springing because it feels safer. The delay in proving incapacity is almost always worse than the risk of a durable document.
Naming two agents at once. Two people with equal power over your bank account means delay and friction. Some banks will want both signatures on everything. Name one. Name a backup.
Picking the wrong person out of guilt. The right agent is the one who handles money well under stress. Not the one whose feelings would be hurt.
Hiding the document. A power of attorney in a safe deposit box that only you can open is useless when you are the one who cannot act. Your agent needs to know where it is, and should already have a copy.
The real test
The test of a power of attorney is not whether it reads well in a law book. It is whether the bank takes it the first time your agent walks in.
If yours was drafted with that test in mind, your family is in good shape. If it was a form, or signed in a hurry years ago, it is worth having someone look at it before your family finds out it does not work.
I offer free consultations for families across the South Shore and South Coast. We will look at what you have, talk through what fits, and I will tell you honestly what I would recommend. No sales pitch. No pressure. Just a clear answer.
Jason Cullen, Esq.
Massachusetts estate planning and probate attorney serving the South Shore and South Coast. Career fire captain, paramedic, and Army veteran. Author of the Massachusetts Trustee Handbook.
About Jason →