Why Is the Bank Ignoring Your Power of Attorney? (And What You Can Do About It)

Few things feel more helpless—or more infuriating—than being told the power of attorney you painstakingly set up won’t be honored. It usually happens when you’re already juggling a mountain of caregiving tasks. You’re managing appointments, medication schedules, emotional exhaustion, and trying to keep your spouse or parent safe. Then you go to the bank or try to handle an account—and suddenly, it’s like none of that matters. They look at you, the legally appointed agent, and say: “We need your spouse to authorize the transaction.”

Except your spouse has dementia. That’s why you have the power of attorney in the first place.

A power of attorney (POA) is supposed to be one of the most straightforward tools in estate planning. It’s meant to give a trusted person the legal authority to act on behalf of someone who can no longer manage their own affairs. It’s supposed to help caregivers—not throw up more red tape. But “seamless” isn’t how most families would describe their experience with banks and financial institutions. Far from it.

Here’s what actually happens all the time:

• The bank asks your spouse to verify a transaction by confirming their birth date, phone number, or email—when they haven’t been lucid enough to access their inbox in years.

• You’re told you need to fill out the bank’s “own” POA forms, even though you already have a valid, state-compliant document.

• They demand a note from a doctor confirming your loved one’s incapacity—even when your POA clearly states it’s immediately effective and doesn’t require medical certification.

These hoops aren’t harmless. They create real harm. They delay urgent transactions. They pile on paperwork when you’re already stretched thin. And in some cases, they block you from helping the very person you’re legally supposed to be supporting.

To be fair, financial institutions do have a role in preventing elder abuse and fraud. That concern is real. But Nebraska law—specifically the Nebraska Uniform Power of Attorney Act—already balances those concerns. The law spells out when a POA becomes effective, what makes it valid, and under what conditions a financial institution can reject it. Spoiler: refusing to accept a valid POA just because it’s “not our form” isn’t on the list.

And yet, banks and brokerages knowingly do this every day. They delay, deny, or demand more than the law allows. They lean into “compliance” but ignore the real-world consequences for caregivers and families. A cynic might say it’s just a way to keep assets under their roof longer—and whether that’s intentional or not, that’s often the result.

This is where I come in.

When I work with families—especially spouses or adult children caring for someone with dementia or diminished capacity—I make sure your legal authority is not just technically valid, but practically usable. That means:

• Drafting clear, durable powers of attorney that meet Nebraska’s legal standards

• Guiding you on how and when to notify banks or financial firms before an emergency hits

• Helping you respond when a POA is improperly rejected

• Enforcing your rights under Nebraska law when an institution is out of line

• Giving you the confidence that, when you step in to help, the law is behind you

This isn’t about jumping through unnecessary hoops—it’s about removing them.

The bottom line? If you’re a caregiver, you deserve systems that work with you, not against you. A power of attorney is supposed to protect your loved one and make your job easier. If a financial institution treats your legal authority like a suggestion instead of a directive, that’s not your failure—it’s theirs.

If you’re facing these challenges or want to make sure your documents will actually work when it counts, I’m here to help. Don’t let paperwork—or policy—stand in the way of doing the right thing. Contact me at 402-259-0059 or zach@zandersonlaw.com.