Charles signed a durable financial power of attorney (“POA”) more than a decade ago, naming his son, William, as his agent. As Charles' cognitive abilities gradually declined, William began handling his father's banking and financial affairs, including paying bills and managing accounts.

Recently, William visited Charles' bank to transfer funds needed to pay ongoing expenses. When he presented the POA, a new bank clerk reviewed the document and informed him that it was "too old" and that the bank would require a more recently executed POA before allowing the bank transaction.

This posed a big problem since Charles no longer had the mental capacity to execute a new POA. Is the bank correct? Does a POA expire simply because it was signed many years ago? And what options does an agent have when a financial institution refuses to accept an older, but otherwise valid, POA?

In Ohio, a durable power of attorney does not become invalid simply because it was signed many years ago. A properly executed financial POA may remain fully effective for decades, provided:

• The principal is still living;
• The principal has not revoked the POA;
• The document does not contain an expiration date or terminating event;
• The purpose of the POA has not been completed; and
• No other statutory termination event has occurred.

In other words, a durable financial POA does not expire merely because it is old. 

Although Ohio law recognizes older powers of attorney, banks frequently request more recent documentation. This is usually a matter of internal risk-management policy rather than a requirement of Ohio law. Financial institutions may have concerns that the principal revoked the POA or executed a newer one naming a different agent. Since banks face potential liability if they allow an unauthorized person access to an account, older documents often receive additional scrutiny. To reduce uncertainty, a bank may request supporting documentation before accepting an older POA.  

Ohio law specifically provides for an "Agent's Certification as to the Validity of Power of Attorney and Agent's Authority." This certification allows the agent to affirm, under penalty of perjury, that:

1. The principal is alive;
2. The principal has not revoked the power of attorney;
3. The agent's authority has not terminated;
4. Any required triggering event has occurred, if applicable; and
5. The agent is properly serving as a successor agent, if designated as one.

An agent's certification is often sufficient to address a bank's concerns. If the bank still refuses to accept the document, legal counsel may be able to assist. In many cases, financial institutions will accept an attorney's opinion letter confirming that the POA remains valid and effective.



When a bank demands a newer POA, it is important to understand the difference between the bank's internal policies and Ohio law. By providing the appropriate certifications, and, when necessary, obtaining legal assistance from a trusted attorney, agents can often secure recognition of a valid existing POA. If those efforts are unsuccessful, the most practical solution may be transferring the accounts to a financial institution with more reasonable POA policies.  If you need legal support, Laribee Law, LLP is here to assist you.

Michael Laribee is a partner in the Medina law firm of Laribee Law, LLP. This article is intended to provide general information about the law. It is not intended to give legal advice. Readers are urged to seek advice from an attorney regarding their specific issues and rights.