Financial POA for retirement accounts

I think I ready something a while back about how important it is for people to obtain a financial power of attorney for their retirement accounts, in the event they become incapacitated, but do not die. Obviously, if they die, the beneficiaries will receive the retirement money. But, if the owners of the accounts do not die, no one can gain access to the accounts without something like this.

Can anyone tell me where that was mentioned in one of the newsletters? I need to give some guidance to an attorney for my client. The attorney is not familiar with a power such as this.

Thanks so much.

Bill Hamilton



  • Powers of attorney are routine in estate planning.  If your client’s lawyer isn’t familiar with them, he/she should consult a different lawyer.
  • Bruce Steiner

Some custodians will accept a durable POA including retirement account authority, and others may require their own form to be completed. Since retirement accounts are individually titled, there are no joint owners to step in. While dementia is basically permanent, at least the onset is normally gradual enough so that the POA can be completed at the earliest signs while the principal’s signature can still be accepted. 

It is a good idea to have any POA documents drawn up with specific language regarding retirement accounts, and that it specifically lists which actions are allowed and which are restricted.  Because of the possibility of negative tax consequences that your POA may not be familiar with, it’s best to really think about what you want to allow your POA to do or not do when dealing with your retirement account.  Once someone is incapable of handling any of their affairs you should really be getting a conservatorship or guardianship instead of relying on a POA.

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