Houston Estate Planning and Elder Law Attorney Blog
A power of attorney often sits quietly in a drawer until a crisis hits. A parent has a stroke. A spouse starts showing signs of memory loss. A hospital discharge plan requires financial decisions right away. Families show up at a bank or brokerage firm with a signed document and expect the next step to be simple. Refusals happen more often than people expect, especially when the power of attorney is old, missing key language, or does not match what a financial institution wants to see.
Texas law provides tools to reduce this risk, including statutory forms and rules governing acceptance. The practical goal is to avoid delays that can disrupt care, housing, and day-to-day stability when time already feels tight.
Texas Power of Attorney Refusals by Banks and Brokerage Firms
Financial institutions tend to worry about fraud, liability, and document validity. A refusal may come from internal policy rather than a careful legal review, and the reasons can feel vague. Some institutions reject documents that look unfamiliar or are not in a preferred format. Others insist on their own forms, even when a Texas statutory durable power of attorney should work.
Delays can create immediate harm. Bills pile up. Automatic payments fail. Care facilities require deposits. Home repairs go unpaid. A refusal can also create tension within the family if one sibling believes the agent is mishandling the situation, while another believes the institution is simply blocking access.
Common Reasons a Texas Power of Attorney Gets Rejected
Several issues show up repeatedly. The age of the document can raise suspicion, especially when it is many years old, and the principal’s current capacity is uncertain. Missing pages, poor copies, or unclear notarization often lead to a quick no.
Scope problems also matter. A durable power of attorney can be broad, yet it still needs to grant the powers that match the task. Real estate transactions, gifting, changing beneficiary designations, and creating or funding certain trusts can require specific authority. A bank may refuse a request if it falls outside the document’s clear terms.
Identity verification causes trouble as well. Institutions often demand proof that the person presenting the power of attorney is the named agent and proof that the principal is the person who signed it. If names changed after marriage or documents use initials inconsistently, the agent may get stuck.
Internal policy plays a role, too. Some banks require their own certification forms to be signed by the agent, or they may require a legal review period. Others want the document recorded when real estate is involved, even if the immediate issue is a banking transaction.
What Texas Law Says About Accepting a Power of Attorney
Texas Estates Code Chapter 751 governs durable powers of attorney and includes provisions related to acceptance and reliance. Financial institutions still have legitimate reasons to request confirmation, such as asking the agent to sign a certification. The statute also limits the ability to reject a power of attorney without a proper basis and provides a path to address an improper refusal.
In real life, the statute is only part of the story. A frontline employee often makes the first decision, and that person may not have the authority or training to weigh statutory requirements. Escalation and documentation often make the difference.
Practical Steps to Get a Texas Power of Attorney Accepted
A careful approach usually starts before a crisis. Using the Texas statutory durable power of attorney form often reduces pushback. Institutions see it regularly, and the structure answers common questions in a familiar way. Updating older documents can also help, especially when the principal’s health is changing.
A clean copy of the power of attorney, identification for the agent, and supporting identity documents for the principal can prevent delays. If the principal’s name has changed, having marriage certificates or other proof can save time.
A second step involves preparation for questions. Some institutions request an agent certification or affidavit. Having counsel help prepare a response can prevent an agent from signing something that creates unintended liability or conflicts with the document.
Calm escalation helps when the first answer is no. Asking politely for a supervisor review, requesting the refusal in writing, and identifying a point of contact in the legal department often moves the process forward.
When an Outdated Power of Attorney Creates a Bigger Problem
Sometimes the refusal is the symptom, not the problem. The real issue is that the power of attorney no longer fits the person’s life.
A principal may now own different assets than they did when the document was signed. The agent may no longer be the right person. A blended family may pose a higher risk of conflict. The document may not include successor agents, which can be devastating if the primary agent is unavailable.
In more serious situations, capacity is already impaired. That closes the door on updating the document and can push families toward guardianship. Guardianship is slower, more expensive, and more intrusive than most families expect, which is why a timely power of attorney update can be so valuable.
What to Do When a Bank Refuses, and Care Needs Continue
Start by gathering all the facts. Identify which transaction is being blocked, what the institution is requesting, and whether the request falls within the powers granted. A refusal letter, even a short one, is useful.
Next, avoid making rushed workarounds. Using personal funds without a clear reimbursement plan can create family disputes later. Informal transfers can look suspicious. A structured plan should protect both the principal and the agent.
If refusal continues, legal counsel can evaluate whether the institution is relying on a lawful reason or whether a demand for acceptance is appropriate under Texas law. The best approach depends on the urgency, the size of the transaction, and the risk of escalation.
Contact a Houston Estate Planning and Elder Law Attorney
Power of attorney problems usually arrive at the worst possible moment, when healthcare decisions and financial deadlines collide. Houston, Texas Estate Planning & Elder Law Firm McCulloch & Miller, PLLC helps families update durable powers of attorney, plan for incapacity, and respond when financial institutions refuse to honor an otherwise valid document. To schedule a consultation, call (713) 903-7879.