You’ve prepared for the future: your elderly parent signed a Florida power of attorney (POA) to ensure someone they trust can step in to pay bills, access accounts, and handle urgent financial matters. But when you walk into the bank with the document in hand, the teller frowns and says: “We can’t accept this.”

Frustrating? Absolutely. Illegal? It just might be.

At Welch Law, PLLC, we’ve seen countless Florida families face this exact challenge. Here’s what you need to know — including what penalties banks may face for refusing to honor a valid POA.

Why Florida Banks Sometimes Reject a Power of Attorney

Banks usually aren’t trying to be difficult. Instead, they’re trying to protect themselves from liability. The most common reasons for rejection are:

• Outdated documents that don’t reflect Florida’s current statutory language.

• Internal policies requiring bank-specific POA forms.

• Unclear drafting that doesn’t spell out authority over certain accounts.

• Untrained staff who misunderstand the legal power of a POA.

While those concerns are real, they don’t override Florida law.

Florida Law: When a Bank Must Accept a Florida Power of Attorney

Under Florida Statutes Chapter 709, a properly executed POA is valid and enforceable. To be valid in Florida, the POA must be:

• Signed by the principal (your parent).

• Witnessed by two people.

• Notarized.

Once those requirements are met, banks cannot simply reject it based on convenience, outdated policies, or because they “prefer their own form.”

Penalties for Wrongful Refusal of a Florida Power of Attorney

Here’s where Florida law gets serious. Under Fla. Stat. §709.2120, if a financial institution unreasonably refuses to honor a valid POA, the law provides teeth:

1. Court Order – You can petition the court to compel the bank to accept the POA.

2. Attorney’s Fees and Costs – If the court finds the bank acted improperly, the bank may be required to pay your attorney’s fees and court costs.

3. Damages – If the refusal caused financial harm (for example, unpaid medical bills or missed mortgage payments), the bank may be held liable for those losses.

Florida law is clear: banks can’t stonewall families without consequences.

What to Do If a Bank Rejects Your POA

If you face this situation, here’s a roadmap:

1. Request the reason in writing – Florida law allows you to demand a written explanation.

2. Escalate the issue – Ask for review by a branch manager or the bank’s legal department.

3. Consult an attorney – An elder law attorney can pressure the bank to comply — and, if necessary, file a court petition under Fla. Stat. §709.2120.

How to Prevent Problems Before They Happen

Proactive planning can save enormous stress later. Our recommendations:

• Use a durable power of attorney — it stays valid even if your parent becomes incapacitated.

• Draft with Florida statutory powers spelled out clearly.

• Present the POA to the bank when it’s signed so they can keep it on file.

• Update the POA every few years — a “fresh” document carries more weight with institutions.

When a Florida Power of Attorney Isn’t Enough

In rare cases, even a strong POA may not get the job done. If the bank absolutely refuses or questions your authority, you may need to pursue guardianship through the Florida courts. This should always be the last resort — but it’s a legal safeguard when no other options remain.

At Welch Law, we work to prevent that outcome by drafting POAs that banks must honor and enforcing your rights when they don’t.

Key Takeaways

• Banks cannot ignore a valid POA: Florida law requires compliance.

• Penalties apply: Under §709.2120, banks that wrongfully refuse can face court orders, attorney’s fees, and damages.

• Be proactive: Present the POA early and update regularly to reduce resistance.

• Durability matters: Only a durable POA remains valid if your parent becomes incapacitated.

• Legal remedies exist: An elder law attorney can compel compliance.

Call to Action

If a Florida bank is refusing to honor your parent’s power of attorney — or if you want to make sure it never happens — Welch Law, PLLC can help. We draft bank-proof POAs and, when necessary, take legal action to enforce them.

By:  Edward J. Welch, Esq. ||| Estate Planning | Wills | Trusts | Asset Protection | Welch Crypto Trust™

If you would like to discuss your legacy options with an estate planning attorney in Jupiter or Palm Beach Gardens, Florida, schedule a complimentary call with Edward J. Welch at Welch Law, PLLC.  At Welch Law, WE WANT TO DRAFT YOUR LEGACY!

References: AARP (July 31, 2023) "What Caregivers Can Do When Banks Reject a Power of Attorney?" and Consumer Financial Protection Bureau (August 30, 2024) "My family member signed a power of attorney (POA) but when I took it to the bank/credit union, I was told the POA has to be on the bank/credit union's form. What can I do?"