Is Your Power of Attorney Stale?

If you’ve executed a financial power of attorney (POA), you can relax with the peace of mind that, should something happen to you, your chosen agent will be able to step into your shoes and take over your affairs. Right?

Well, not necessarily. If a POA does not have an expiration date on its face, then it is technically valid so long as the grantor lives. In practice, though, this is far from true. If a POA is more than a few years old, many banks and other financial institutions will refuse to honor it. This is known as a “stale” power of attorney. 

How old is too old? At a minimum, any power of attorney that is over ten years old should be redone. Conservatively, I would recommend refreshing it every three to five years. Remember, there may also be changes in the law or changes in your life that might also impact this timing. 

While we all like to think of estate planning as “set it and forget it,” it’s a really good idea to dust off that file and take a look at things regularly. Otherwise, you blink and your POA goes stale. 

If your POA is stale, or if you have another estate planning issue, make an appointment for a quick chat to learn more about your options.