When a Power of Attorney Isn’t Enough: What Nebraskans Need to Know About Incapacity, Banks, and Red Tape

Imagine this: your aging father suddenly ends up in the hospital and can no longer manage his finances. You step in as the named agent under his Power of Attorney, only to hear the bank say, “Sorry, we can’t accept this.” Now you’re in crisis mode—not just emotionally, but legally and financially too.

This scenario plays out more often than you’d think. And here’s the uncomfortable truth: having a Power of Attorney (POA) in place isn’t always enough.

In Nebraska, even a valid POA can be rejected by a bank or financial institution. And when a family is already navigating the emotional weight of incapacity, the last thing they need is a bureaucratic nightmare blocking access to essential accounts.

If you’re asking, “Do I really need a power of attorney in Nebraska?” the answer is yes. But it’s not just about having one—it’s about having one that works.

Why Banks Say No (Even When the Law Says They Shouldn’t)

Even well-drafted POAs get rejected. Some institutions treat older documents as “stale,” even though Nebraska law doesn’t impose any formal expiration. Others want highly specific language authorizing your agent to do certain things—like change beneficiaries or make gifts—or they won’t process the request.

And if you’ve named two kids as joint agents to avoid conflict? That can cause even more of it. Many banks won’t act unless both sign off every time, and if they disagree? You’re stuck.

Bottom line: if your POA doesn’t tick every box, and your loved one is already incapacitated, your only alternative may be a court-ordered conservatorship—which is slow, expensive, and exactly what most people try to avoid.

What Makes a POA Actually Work in Nebraska

If you’re working on your Nebraska estate plan, here’s what makes a Power of Attorney more than just a formality:

• Durability: Nebraska has adopted the Uniform Power of Attorney Act (UPOAA), which presumes a POA is durable—meaning it remains valid even after you become incapacitated. But including clear durable language is still a smart move, especially to avoid pushback from institutions.

• Immediate Effectiveness: “Springing” POAs—which only take effect once you’re declared incapacitated—seem safer, but they create huge delays. Most banks require one or two doctors’ certifications to prove incapacity. By the time you get that, critical decisions may already be stalled. An immediate POA removes this barrier.

• Specific Powers: The law restricts certain high-stakes actions unless your POA explicitly authorizes them. That includes:

  • Changing beneficiary designations

  • Making gifts

  • Accessing digital accounts and emails

  • Creating or amending trusts

  • Handling tax filings

  • Managing retirement assets

    If these powers aren’t spelled out, your agent may not be able to act—even if the POA says they can manage “all financial matters.”

• Digital Assets: Nebraska follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which requires express language to grant your agent access to things like email, cloud storage, or even your online banking. If your POA doesn’t cover this, your agent may be locked out.

• Updated Language: Even if there’s no legal expiration, institutions are more likely to push back on old documents. A POA from 1998 might technically be “valid,” but it may not include the right language—or be accepted without a fight.

Don’t Be Afraid of the Long POA

Clients sometimes joke about “signing their life away” when reviewing a POA that’s 10+ pages long. But all that detail? It’s intentional. That language exists to anticipate real-life roadblocks. Banks and brokerages want specificity. So yes, we’re throwing in “everything but the kitchen sink,” because that’s what actually gets results when things go sideways.

What If the Bank Still Says No?

Even if your POA is current, comprehensive, and legally sound, some institutions may still refuse to honor it. They’ll cite internal policy. They’ll delay. They’ll deflect.

Here’s what Nebraska law says: under the UPOAA, a financial institution must accept or reject a POA within seven business days. If they need more time, they must provide a legal reason—and they’re limited to five more business days after that. If they still refuse without a valid basis, legal remedies may be available.

That said, pushing back often requires legal help. Which is why the best strategy is to get your POA on file with the institution while you—or your loved one—still have capacity. If they reject it then, you still have time to fix it.

POAs vs. Trusts: Why You Might Need Both

A revocable living trust is a powerful tool for managing assets during incapacity—but it’s not a substitute for a POA. Some assets (like IRAs and annuities) can’t be held in trust. And things like filing taxes or dealing with government benefits still require an agent under a POA.

Your POA and trust should complement each other. If they don’t, you risk creating confusion or limiting your fiduciary’s ability to act when needed.

Bottom Line

A Power of Attorney is one of the most important legal tools you can have—but only if it’s done right. That means:

• It’s durable.

• It’s effective immediately.

• It’s updated regularly.

• It contains explicit powers.

• It includes authority for digital assets.

• It’s accepted where it needs to be.

This isn’t just paperwork. It’s what protects your family from court delays, confusion, and preventable stress during already difficult moments.

If it’s been more than five years since you reviewed your POA—or if you’re not sure it includes the powers you’d want your agent to have—now’s the time to take a second look. Contact me at 402-259-0059 or zach@zandersonlaw.com to review it, or let’s do a new one together.

Because a POA that doesn’t work when you need it? Isn’t much of a plan at all.