Power of Attorney for Bank Accounts: Managing an Elderly Parent's Finances in Arkansas

Your parent's bank just froze their account after they failed a routine security question during a phone call. Now their automatic bill payments are bouncing, and you need access to their funds to keep the lights on. Without a durable power of attorney on file, the bank will not let you touch the account — even with your parent sitting right there if they cannot pass the bank's verification process.

Getting the POA Accepted by Arkansas Banks

A durable financial power of attorney under Arkansas Code Title 28, Chapter 68 gives you legal authority over your parent's bank accounts, investments, and financial transactions. But having the document is only half the battle — the bank must accept it.

Under Arkansas Code § 28-68-105, financial institutions are legally required to accept a properly executed statutory power of attorney. The bank can request a certification from the agent confirming the document is still in effect, but they cannot refuse solely because the document is old or was not prepared on their own proprietary form.

To minimize friction when presenting the POA to a bank:

• Ensure the document is notarized. While a standard financial POA does not always require notarization, § 28-68-105 presumes that a notarized signature is genuine. Banks rely heavily on this presumption. An un-notarized POA will face additional scrutiny.
• Bring certified copies. Banks typically keep a copy for their files. Bring at least three certified copies so you can file with multiple institutions simultaneously.
• Present the document in person with your government-issued photo ID. Most banks will not accept a POA submitted by mail or fax for initial verification.
• Ask the bank for their specific agent registration process. Many institutions require the agent to complete internal paperwork — signature cards, authorized user forms — before granting account access.

What to Do When the Bank Refuses

If a bank rejects a properly executed POA, Arkansas law provides recourse. Under § 28-68-120, a financial institution that unreasonably refuses to accept a valid power of attorney can be held liable for attorney fees and costs incurred by the agent in enforcing acceptance.

Before escalating to legal action:

1. Ask the bank to provide their specific objection in writing
2. Have an attorney send a demand letter citing the statutory acceptance obligation
3. Contact the bank's legal or compliance department directly — branch-level staff may not be familiar with the statutory requirements

The "Hot Powers" Trap

Standard financial authority covers bill paying, deposits, withdrawals, and routine account management. But if you need to restructure your parent's finances for Medicaid planning — such as establishing a Miller Trust or transferring assets to protect a community spouse — the POA must include explicitly initialed "hot powers" under § 28-68-201.

Without these specific authorizations, you cannot:

• Create, amend, or revoke a living trust
• Make gifts of your parent's property
• Change beneficiary designations
• Transfer real estate

If your parent's existing POA does not include these initials and they have already lost capacity, the only way to gain this authority is through a court-supervised guardianship of the estate — adding thousands of dollars in legal costs.

Real Estate: The Notarization Requirement

If you need to sell, mortgage, or transfer your parent's home using a power of attorney, Arkansas law under § 18-12-501 strictly requires the POA to be notarized and recorded with the county clerk in the county where the property is located. A POA that was never notarized cannot be used for real estate transactions, regardless of whether it is otherwise valid.

When a POA Isn't Enough

A durable financial POA covers private banks, investment accounts, and state-level financial matters. It does not authorize you to manage:

• Social Security payments — the SSA requires appointment as Representative Payee through Form SSA-11
• State tax matters — the Arkansas DFA requires its own specific power of attorney form
• Medical decisions — a separate healthcare power of attorney is needed

The Arkansas Power of Attorney & Guardianship Kit for Aging Parents includes the statutory financial POA with all hot powers clearly marked, plus the healthcare directive, Representative Payee guidance, and DFA tax authority form — every document you need to manage your parent's complete financial and medical life.

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