He had largely run through his savings to pay her salary. What was left were two small IRAs -- totaling less than the sticker on a low-end Chevy.
In the last six months, as Jack's mental faculties deteriorated, David started writing checks for his dad to sign, tracking his growing list of medications and consulting with his doctors. By mid-October, David headed to our local Bank of America branch; it was time to crack open his dad's IRAs.
Trip 1: A customer representative faxed David's copy of Jack's simple trust and the durable power of attorney he'd filled out 12 years earlier to the legal department for verification. Sorry, came back the answer; they need to see the originals.
Trip 2: David found them in Jack's mobile home, and the account rep again faxed them to legal. Sorry, she said, the bank's lawyers interpreted the power-of-attorney document to mean that David and his sister had to act jointly. Bank policy requires account holders to designate only one surrogate, not two. Doris would have to cede her power to David in a notarized letter.
Trip 3: Good news, said the account rep, Doris' letter passed muster with the lawyers, so David could now manage Jack's checking and savings accounts. But the IRAs were off limits, she declared. Confused, David asked to speak with the bank lawyers. Not possible, she said.
Trip 4: Incredulous, I called my colleague Kathy Kristof, The Times' Personal Finance columnist. She was equally dumbfounded that the bank could legally hold on to Jack's IRAs despite the power of attorney he had filled out. The last page of that document is a commonly used checklist of financial powers. Jack could have deputized his kids to handle only his tax returns or just his retirement accounts or stock transactions. Instead, he checked Line N, "All of the powers listed above."
Kathy helped connect David with the branch manager, who, after looking at that checklist, agreed that "all financial powers" should include Jack's IRAs. We just needed to send the documents to both the bank's legal department (again) and to the central IRA department in San Francisco, he said. Once they scanned in the documents, Jack's IRA accounts would include a computer flag authorizing David to act in his dad's stead. Give us five to eight business days, the manager said, and we'll take care of it.
