Can A Power Of Attorney Withdraw Money From A Bank Account?

Yes—but only if the Power of Attorney (POA) document explicitly grants that authority and the agent uses that authority lawfully and ethically.

According to the Consumer Financial Protection Bureau (consumerfinance.gov), a valid financial POA gives the appointed agent the power to handle the principal’s money, including managing bank accounts. However, that authority must be exercised solely for the principal’s benefit.

Similarly, LawHelpNY explains that POA authority may include the right “to spend your money and dispose of your property”—but only within the terms of the document. In essence, the agent can withdraw money from the principal’s bank account, provided they follow the document’s scope and act in good faith.

Financial Authority Under a Power of Attorney

A financial POA allows a designated agent to make financial decisions on behalf of the principal. The level of authority depends on the type and language of the POA.

Common Financial Powers Granted

Typical powers in a financial POA may include:

Paying bills and expenses: Including rent, utilities, medical costs, and other living expenses.
Banking transactions: Depositing or withdrawing money, transferring funds, or managing account access.
Managing investments: Handling stocks, mutual funds, and brokerage accounts.
Handling real estate: Selling or refinancing property or applying for financial loans.
Making gifts or managing estate planning: If specifically authorized in the POA.

Unless restricted, most financial POAs give agents broad authority to handle nearly all financial matters.

Types of POAs Affecting Banking Powers

General POA: Grants broad financial powers.
Limited (Special) POA: Restricts powers to specific transactions or timeframes.
Durable POA: Remains valid even if the principal becomes mentally incapacitated.
Springing POA: Takes effect only after a specific event, such as a medical diagnosis of incapacity.

Agents must always refer to the document to understand the scope of their authority.

Can a Power of Attorney Withdraw Money from a Bank Account?

When Can an Agent Withdraw Money?

If the POA is valid and includes banking powers, the agent may begin using those powers immediately—unless it’s a springing POA, which requires a triggering event.

Bank Requirements

Most banks require:

A signed and notarized copy of the POA.
Verification that the document meets state legal standards.

Once accepted, the agent can:

Deposit checks.
Make withdrawals or transfers.
Pay bills from the principal’s account.
Open or close accounts (if permitted in the POA).

For example, California’s statutory POA form explicitly permits agents to withdraw funds held in financial institutions.

Limitations

The agent must:

Act only within the powers granted.
Use funds solely for the principal’s benefit.
Cease all authority if the POA is revoked or the principal dies.

Misuse and Abuse of POA Powers

Illegal Use of POA

Agents cannot use the POA for personal gain, unless the document clearly allows certain gifts and such gifts are permitted under state law. Misusing funds for self-interest is considered self-dealing and is often illegal.

Examples of misuse include:

Writing checks to oneself.
Using the principal’s credit/debit cards.
Diverting money into personal accounts.
Continuing to access accounts after the principal’s death or revocation of POA.

According to the U.S. Department of Justice (justice.gov), such behavior can constitute financial elder abuse, which is criminally prosecutable in many states.

Legal Consequences

Civil lawsuits for breach of fiduciary duty.
Criminal charges including theft, fraud, or elder abuse.
Court-ordered repayment, removal of the agent, and fines or imprisonment.

Fiduciary Duties and Legal Responsibilities

By law, an agent under a POA is a fiduciary—meaning they must act in the principal’s best interests, follow instructions, and avoid conflicts of interest.

Fiduciary Obligations Include:

Acting honestly and loyally.
Keeping the principal’s money separate from personal funds.
Maintaining accurate records of all financial transactions.
Avoiding unauthorized delegation of powers.

Failure to uphold these duties can lead to civil and criminal penalties, including restitution and jail time. Courts may award double damages in some elder abuse cases.

Real-Life Example of POA Abuse

In a 2025 case in Pennsylvania, a woman and her husband were charged with financial exploitation after allegedly spending over $10,000 of the principal’s money on vacations and non-essential purchases. Although the woman was the principal’s POA, she was accused of misusing that trust for personal gain—an action which led to both criminal charges and civil liability.

FAQs

Can a POA access any bank account?

No. Only accounts owned by the principal are accessible under a POA. Joint accounts or third-party accounts are excluded unless specified.

Does the bank need a copy of the POA?

Yes. Most banks require a notarized copy of the POA before granting access to the agent.

What happens if the POA is revoked or the principal dies?

The POA ends immediately. Any transactions afterward are unauthorized and may be treated as fraud or theft.

Can the agent give gifts to themselves or others?

Usually not, unless the POA explicitly allows it and the law permits. Even then, large gifts may be legally scrutinized.

What is an agent’s fiduciary duty?

The agent must follow the principal’s instructions and act in their best interest. Commingling funds or acting for personal gain is a breach of this duty.

How can POA abuse be prevented?

Choose a trustworthy agent.
Use limited or monitored POAs.
Provide a copy to the bank.
Appoint joint agents or third-party overseers.
Regularly review financial activity.

What happens if an agent misuses a POA?

The principal or family can file a lawsuit. Law enforcement may press criminal charges, and courts can order repayment and penalties.

What’s the difference between durable and non-durable POA?

A durable POA remains valid during incapacity; a non-durable POA does not. Many people prefer durable POAs for continuous access during emergencies.

Final Thoughts

A Power of Attorney can give an agent the authority to withdraw money from the principal’s bank account—but only if the document explicitly allows it and the agent follows legal and ethical guidelines.

The agent must always act within their fiduciary duty, putting the principal’s interests first. Misuse of POA authority is a serious matter and can lead to both civil and criminal consequences.

For further guidance, always consult with an attorney or refer to state-specific resources such as:

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Can a Power of Attorney Withdraw Money from a Bank Account?

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