Options for Withdrawing Money from a Parent's Bank Account When They Are Unable to

Withdrawing money from your parent's bank account can be challenging if they are unable to manage their finances due to illness or incapacity. However, several legal and ethical options may be available to you, depending on your relationship and the specifics of the situation.

Power of Attorney (POA)

One of the most common and legally sound solutions is to obtain a Power of Attorney (POA). This legal document grants you the authority to act on behalf of your parent in various financial matters, including withdrawing money from their bank account.

In some jurisdictions, such as Colorado, if the principal (your parent) is unable to sign the POA but understands the document's purpose and is willing, they can direct another person to sign the document on their behalf. This is known as a signature by proxy. If the principal is physically unable to express their intentions, they can indicate their consent through actions such as blinking their eyes.

A durable power of attorney remains in effect even if the principal becomes incapacitated, ensuring that you can continue to manage their financial affairs when needed.

Joint Account

If you are a joint account holder of your parent's bank account, you have the authority to withdraw funds without additional authorization. This makes it a straightforward process to access the funds when necessary.

Bank Policies

Some banks may allow a family member to withdraw funds on behalf of an incapacitated account holder. However, this typically requires providing documentation that proves the account holder's inability to act. It's important to check the specific bank's policies to understand their requirements and procedures.

Legal Guardianship

In cases of severe incapacity, becoming a legal guardian may be the most comprehensive solution. This can allow you to manage your parent's finances legally. The process involves going to court and having a judge declare you as the legal guardian. Once granted, you can use this authority to pay for your parent's necessities.

Practical Steps:

Speak with a Lawyer: Consult with a legal professional to understand the specific requirements and procedures in your jurisdiction. Prepare Documentation: Gather and prepare all necessary documents such as the Power of Attorney or proof of your parent's incapacity. Sign at the Bank: If the POA needs to be signed by someone else, ensure that everyone involved is present to sign it at the bank. Use Internet Banking: If your parent uses internet banking and shares their login credentials with you, you may be able to access the account directly. Apply to the Court of Protection (U.K.): In the U.K., if no other options are available, you can apply to the Court of Protection for permission to act on your parent's behalf.

Conclusion: The ability to withdraw money from your parent's bank account when they are unable to manage it themselves is not straightforward but can be achieved through legal means such as a Power of Attorney, joint account arrangement, or legal guardianship. It is crucial to follow the correct procedures and ensure all actions are legal and ethical.