Can a Bank Refuse Power of Attorney in Maryland

The Short Answer

No — not if you are using a properly executed statutory form. Under Estates and Trusts Section 17-104, financial institutions operating in Maryland are legally required to accept the statutory power of attorney forms found in ET Sections 17-202 (Personal Financial POA) and 17-203 (Limited POA). An institution that unreasonably refuses can be ordered by the court to comply, and the institution may be liable for reasonable attorney's fees and costs incurred to obtain that order.

Despite this clear mandate, bank refusals remain one of the most common complaints from families trying to manage an aging parent's finances in Maryland.

Why Banks Refuse Valid Documents

The refusals typically fall into four categories:

"We need our own form." Some banks have internal POA forms and insist the agent use those instead of the statutory form. Maryland law does not require you to use the bank's form if you have a valid statutory POA.

"This document is too old." Maryland does not impose an expiration date on powers of attorney. A properly executed POA from 2015 is just as valid as one signed yesterday, provided it has not been revoked and the principal has not died.

"We need to verify this with our legal department." A reasonable verification period is acceptable. An indefinite delay that prevents you from paying your parent's bills or accessing their accounts is not.

"The agent is not on the account." The entire purpose of a POA is to authorize someone who is not the account holder to act on their behalf. This objection contradicts the function of the document.

Your Enforcement Options

Step 1: Escalate at the branch

Bring a printed copy of ET Section 17-104 to the bank. Ask to speak with the branch manager. Many refusals come from frontline staff who are unfamiliar with Maryland's statutory mandate. Showing the specific statute often resolves the issue on the spot.

Step 2: Contact the bank's legal department

If the branch cannot resolve it, request the direct contact information for the bank's legal or compliance department. Send a written request citing ET 17-104 and attaching a copy of your executed POA. This creates a paper trail and signals that you understand your legal rights.

Step 3: Petition the Circuit Court

If the bank continues to refuse, file a petition in the Circuit Court asking for an order compelling the institution to accept your POA. Under ET 17-104, the court can order compliance and hold the bank liable for reasonable attorney's fees and costs incurred to obtain the order.

This fee-shifting provision is the statute's enforcement mechanism. It makes unreasonable refusal expensive for the institution, which is why most banks comply once they understand the legal framework.

How to Prevent Refusals

The most effective prevention is delivering certified copies of the POA to every financial institution your parent uses before a crisis hits. If the bank already has the document on file when you need to act, you avoid the refusal conversation entirely.

When delivering copies:

• Bring the original for the bank to inspect and the copy they will keep on file
• Ask the bank to note the POA in the parent's account records
• Get a written acknowledgment or receipt showing the bank accepted the document
• Record the date, the branch, and the name of the person who accepted it

If your parent uses multiple institutions — a checking account at one bank, a brokerage at another, a mortgage servicer somewhere else — deliver copies to all of them. Each institution requires its own copy, and each may have its own processing timeline.

When a Refusal Might Be Legitimate

Banks are not always wrong to question a POA. A refusal may be appropriate if:

• The document is not properly executed (missing notary, missing witnesses)
• The bank has received written notice that the POA was revoked
• The bank has a good-faith belief that the principal was coerced or lacked capacity at the time of signing
• The agent is requesting a transaction outside the scope of a limited POA

In these situations, the bank is protecting the parent's interests. The agent should address the specific concern rather than escalating to court.

The Maryland Power of Attorney and Guardianship Kit includes a bank enforcement protocol with the statutory text, a template escalation letter, and instructions for each step of the process if an institution refuses your properly executed document.

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