How to Write a Bank Authorization Letter
Look into granting financial power of attorney for limited transactions., Contact your bank for a power of attorney form., Create your own power of attorney form., Present the document to your bank.
Step-by-Step Guide
-
Step 1: Look into granting financial power of attorney for limited transactions.
Most banks won't allow someone not listed on your account to make transactions in your name unless you have given explicit permission.
In legal terms, this means granting the person financial power of attorney (FPOA) by signing a legal document stating what transactions the person is allowed to make.
By giving someone FPOA, you can authorize them to make withdrawals, write checks for you, and take other actions in your absence.
A limited FPOA puts a limit on what the person can do with your account.
You can authorize them to make a few specific transactions if that's all you want them to do.
If you want the person to have longer-term access to your account, you can grant a durable FPOA.
This enables the person to make decisions for you and handle your finances in the event that you become incapacitated. -
Step 2: Contact your bank for a power of attorney form.
Most major banks have a specific power of attorney form (sometimes called a third party authorization form) for you to fill out with the details of your situation.
You'll provide information on to whom you're granting power of attorney, which transactions you want the person to be able to take, and for how long they're authorized to have access to your account.
Either visit your bank in person to speak to an agent, or visit your bank's website to obtain a power of attorney form online.
Fill out and submit the form according to your bank's instructions. , If your bank doesn't have a specific power of attorney form, you can create your own listing exactly what transactions the person is allowed to make.
In order for the document to be legally valid, you will need to follow your state's laws in order to draw it up using the correct language.
Execute (sign) the power of attorney form with the person to whom you're giving FPOA.You may want to have a lawyer help you draw up the form to make sure it's legally sound.
The execution of the document must also be done according to your state's laws.
Some states require that you have a witness, and others require that you have the document notarized. , Once you have your forms filled out and signed according to the requirements of your state laws, visit your bank and meet with an agent to submit the form and make your intentions clear.
Once the form is put on file, the other party will now be authorized to make the transactions you laid out. -
Step 3: Create your own power of attorney form.
-
Step 4: Present the document to your bank.
Detailed Guide
Most banks won't allow someone not listed on your account to make transactions in your name unless you have given explicit permission.
In legal terms, this means granting the person financial power of attorney (FPOA) by signing a legal document stating what transactions the person is allowed to make.
By giving someone FPOA, you can authorize them to make withdrawals, write checks for you, and take other actions in your absence.
A limited FPOA puts a limit on what the person can do with your account.
You can authorize them to make a few specific transactions if that's all you want them to do.
If you want the person to have longer-term access to your account, you can grant a durable FPOA.
This enables the person to make decisions for you and handle your finances in the event that you become incapacitated.
Most major banks have a specific power of attorney form (sometimes called a third party authorization form) for you to fill out with the details of your situation.
You'll provide information on to whom you're granting power of attorney, which transactions you want the person to be able to take, and for how long they're authorized to have access to your account.
Either visit your bank in person to speak to an agent, or visit your bank's website to obtain a power of attorney form online.
Fill out and submit the form according to your bank's instructions. , If your bank doesn't have a specific power of attorney form, you can create your own listing exactly what transactions the person is allowed to make.
In order for the document to be legally valid, you will need to follow your state's laws in order to draw it up using the correct language.
Execute (sign) the power of attorney form with the person to whom you're giving FPOA.You may want to have a lawyer help you draw up the form to make sure it's legally sound.
The execution of the document must also be done according to your state's laws.
Some states require that you have a witness, and others require that you have the document notarized. , Once you have your forms filled out and signed according to the requirements of your state laws, visit your bank and meet with an agent to submit the form and make your intentions clear.
Once the form is put on file, the other party will now be authorized to make the transactions you laid out.
About the Author
Maria Kennedy
Enthusiastic about teaching DIY projects techniques through clear, step-by-step guides.
Rate This Guide
How helpful was this guide? Click to rate: