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

Few things feel more frustrating—or more helpless—than being told your valid power of attorney won’t be honored. You’re doing everything you can to support a spouse or aging parent. You’ve stepped in as a caregiver. You’ve taken time to sign all the right documents. And then the bank tells you they “need the account holder’s permission.”

Except the account holder has dementia. That’s why you have a power of attorney in the first place.

If you’ve run into roadblocks like this, you’re not alone—and you’re not imagining it. Despite what the law says, financial institutions in Nebraska frequently reject valid powers of attorney. And that’s a problem.

What Is a Power of Attorney in Nebraska?

A power of attorney (POA) is a legal document that allows one person (the principal) to authorize someone else (the agent) to make decisions and act on their behalf. There are two main types:

• Financial power of attorney – manages money, banking, property, and other financial affairs

• Healthcare power of attorney – makes medical decisions when someone becomes incapacitated

Under the Nebraska Uniform Power of Attorney Act, a financial institution must accept a POA that meets state requirements—unless it has a legally valid reason to reject it.

What Actually Happens at the Bank (And Why It’s a Problem)

Even when your documents are valid, many banks and brokerages:

• Refuse to honor them because they weren’t drafted on the bank’s own forms

• Ask for additional proof of incapacity—even when the POA says it’s effective immediately

• Require your loved one to verify information—when they are no longer capable of doing so

These delays aren’t just annoying. They can prevent you from paying bills, managing care, transferring funds, or protecting your spouse or parent from financial harm. They put caregivers in legal limbo—with real financial consequences.

Can a Bank Reject My Power of Attorney in Nebraska?

Sometimes. But not for just any reason.

Under Nebraska Revised Statutes § 30-4001 et seq., a financial institution can reject a POA if:

• It has actual knowledge that the POA is not valid

• It suspects abuse or fraud and reports it to Adult Protective Services or law enforcement

• The person named as agent is not acting in good faith

• The form appears incomplete or improperly executed

But they cannot reject a valid POA just because they prefer their own form or want a doctor’s note when one isn’t legally required.

Why This Keeps Happening—and How to Push Back

Banks and financial companies are understandably cautious. They want to prevent elder abuse and unauthorized transactions. But too often, that caution turns into blanket rejection—especially when customer service reps or local branch staff don’t understand Nebraska POA law.

Whether intentional or not, this behavior:

• Delays time-sensitive financial help

• Creates additional legal and emotional strain on families

• Sometimes prevents lawful transactions altogether

In some cases, it may even violate state law.

How We Help: Making Sure Your Power of Attorney Actually Works

When I work with caregivers, spouses, and adult children in Nebraska, I focus on more than just filling out the forms. My goal is to make sure your POA isn’t just technically correct—it’s practically usable.

That includes:

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

• Helping you notify banks and institutions in advance so they aren’t caught off guard

• Responding to improper POA rejections and demanding compliance

• Enforcing your rights under Nebraska POA laws

• Giving you peace of mind that the legal tools you have will actually function when needed

Because when you’re already carrying the emotional weight of caregiving, you shouldn’t have to fight the bank too.

FAQ: Nebraska Power of Attorney Problems

Can a Nebraska bank reject a power of attorney?

Yes, but only for legally valid reasons. Under Nebraska law, banks cannot refuse a POA just because it wasn’t completed on their form or they don’t like the format.

Is a financial power of attorney valid immediately in Nebraska?

It depends on how it’s written. Many POAs are effective immediately, unless the document specifically states it only becomes active upon incapacity.

What if the bank won’t honor my POA?

You may need to escalate the issue. That could involve submitting a formal complaint, providing clarification under the statute, or even pursuing legal remedies if the rejection causes harm.

Does a power of attorney need to be notarized in Nebraska?

Yes. Under Nebraska law, a financial power of attorney must be signed and notarized to be valid.

What’s the difference between a POA and a guardianship?

A POA is voluntary and typically set up in advance. A guardianship is court-ordered and usually imposed when no POA exists or if there’s a dispute about decision-making authority.

Don’t Let the System Work Against You

A valid power of attorney should make life easier—not harder. But when institutions drag their feet or ignore Nebraska law, families are left stuck. If you’re running into resistance from a financial institution or want to ensure your documents will hold up when it matters, you don’t have to navigate it alone.

Call 402-259-0059 or email zach@zandersonlaw.com to schedule a consultation. Let’s make sure your POA works the way it’s supposed to—so you can get back to taking care of the person who needs you.