A power of attorney can open a bank account, but only if the document gives them that specific power
Whether a power of attorney can open a bank account depends entirely on what the document says. A general power of attorney might include banking authority, but it is not automatic. Some powers of attorney are written to cover only specific transactions—paying bills, accessing existing accounts, managing investments—and do not mention opening new accounts at all. Banks also have their own rules about who can open accounts on behalf of someone else, and they will ask to see the power of attorney document before they let anyone proceed.
The person who holds the power of attorney is called the agent or attorney-in-fact. The person who created the document is called the principal. If the principal is still alive and mentally capable, they can usually open their own account, and the agent's authority to do so may not matter. But if the principal is incapacitated, traveling, or simply wants someone else to handle banking tasks, the agent needs clear written permission to act.
Key Takeaways
- A power of attorney must explicitly state that the agent can open bank accounts; general banking authority does not automatically include this power.
- Banks will require you to show the original or certified copy of the power of attorney document before allowing an agent to open an account.
- Some banks have their own power of attorney forms and may refuse to work with a document drafted by an attorney or online service.
- An agent acting under a power of attorney must follow the principal's instructions and keep records of all transactions, even if the principal is incapacitated.
- A durable power of attorney remains valid if the principal becomes incapacitated, but a non-durable one ends immediately.
What the power of attorney document must say to allow account opening
The language in the power of attorney matters. A document that says the agent has authority over "banking matters" or "financial affairs" may be broad enough to include opening accounts, but it is not certain. Some documents list specific powers: "access existing accounts," "make deposits and withdrawals," "manage investments," "pay bills." If opening a new account is not mentioned, a bank may refuse to let the agent do it, even if the agent argues the power is implied.
The safest approach is to have the power of attorney explicitly state: "The agent may open, close, and manage bank accounts in the principal's name." Some people draft powers of attorney that say the agent can do "anything the principal could do regarding banking," which is broader and more likely to cover account opening. However, banks do not always interpret broad language the same way, so you may still run into resistance.
If the existing power of attorney does not mention account opening, the principal can sign a new one or an amendment that adds this power. This is faster and cheaper than fighting with a bank over what the original document means.
What you need to bring to the bank
Banks will not open an account based on a power of attorney without seeing the document itself. Bring the original or a certified copy—a photocopy is usually not enough. Some banks will make their own certified copy and keep it on file. You will also need to show the agent's government-issued photo ID, such as a driver's license or passport.
If the principal is present, they will need to show ID as well. If the principal is not present, the bank may ask for additional proof that the principal is still alive and has not revoked the power of attorney. Some banks ask the principal to sign a separate authorization form, even though the power of attorney already exists. This is the bank's way of creating its own record of consent.
Bring any other documents the bank requests—a Social Security number for the principal, proof of address, or information about the account type you want to open. Different banks have different requirements, so call ahead and ask what you need before you go in.
Banks may use their own power of attorney forms instead
Many banks have their own power of attorney forms and will ask you to use them instead of the document you brought. This is legal, and banks do it to make sure the language matches their internal procedures. If you refuse to sign the bank's form, the bank can refuse to open the account, even if your original power of attorney is valid and broad.
If the bank insists on its own form, you have two choices: sign it, or take your business to a different bank. Some banks are more flexible than others. Credit unions sometimes have simpler processes than large national banks. If the principal is still capable of signing, they can sign the bank's form themselves, which often makes the process faster.
If the principal is incapacitated and cannot sign, the agent signs the bank's form on behalf of the principal, using the power of attorney as authority. The bank will keep a copy of both documents on file.
Durable versus non-durable powers of attorney
A durable power of attorney remains valid even if the principal becomes mentally incapacitated or unconscious. A non-durable power of attorney ends immediately if the principal loses mental capacity. If the principal is already incapacitated, a non-durable power of attorney is worthless for opening accounts, because the agent has no authority once incapacity occurs.
Most powers of attorney used for banking are durable, because the whole point is usually to handle finances if the principal cannot. But if the document does not say "durable" or "this power shall survive incapacity," it is non-durable by default in most states. Check the document or ask the attorney who drafted it.
If the principal is already incapacitated and there is no durable power of attorney, the agent cannot open accounts on their behalf. The only way forward is to go to court and ask for guardianship or conservatorship, which is slower and more expensive.
What the agent can and cannot do with the account once it is open
Once the account is open, the agent's authority depends on what the power of attorney says and what the bank allows. The agent can usually deposit money, withdraw money, pay bills, and transfer funds. The agent cannot usually change the account holder's name, close the account permanently, or add themselves as an owner—those actions typically require the principal's signature.
The agent must keep records of all transactions and be prepared to show them to the principal or to a court if asked. The agent is a fiduciary, which means they have a legal duty to act in the principal's best interest, not their own. Using the account to pay the agent's personal expenses, even if the principal said it was okay, can be considered a breach of fiduciary duty.
If the principal dies, the agent's authority ends. The account becomes part of the principal's estate, and the executor or administrator of the estate takes over. The agent should not continue to use the account after the principal's death.
What to do if a bank refuses to honor the power of attorney
If a bank refuses to open an account or refuses to let the agent access an existing account, ask the bank manager to explain the reason in writing. Common reasons include: the power of attorney is not notarized (though most states do not require notarization), the document is too old (some banks have their own age limits), the language is unclear, or the bank has its own policy against accepting outside power of attorney forms.
If the reason is that the document is unclear or does not mention account opening, the principal can sign a new power of attorney or an amendment. If the reason is that the bank refuses to accept any outside power of attorney form, you can try a different bank, or the principal can sign the bank's form themselves if they are able.
If the bank is refusing without a clear reason, you can file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau. You can also consult an attorney, though this is usually only worth doing if a large amount of money is at stake.
Frequently Asked Questions
Can an agent open a joint account instead of an account in the principal's name alone?
Some banks allow it, but most do not. A joint account makes the agent a co-owner, which is different from being an agent under a power of attorney. The principal should decide whether they want the agent to be a co-owner or just an authorized user. If the principal wants the agent to be a co-owner, they can sign the bank's account opening form themselves, or the bank may allow the agent to open a joint account if the power of attorney explicitly permits it.
What happens if the principal revokes the power of attorney after the agent opens an account?
The agent's authority ends immediately, but the account itself remains open. The principal can close it, change the signers, or remove the agent's access. The agent should not continue to use the account after revocation. If the agent does, it may be considered theft or fraud. The principal should notify the bank in writing that the power of attorney has been revoked.
Can an agent open an account if the principal is deceased?
No. A power of attorney ends when the principal dies. If the principal left a will or a trust, the executor or trustee can open accounts on behalf of the estate. If there is no will or trust, the court will appoint an administrator. An agent under a power of attorney has no authority after death.
Do I need to tell the IRS or the bank that I am acting as an agent?
You do not need to tell the IRS, but you should tell the bank. When you open the account, the bank will ask whose account it is. You will say it is the principal's account, and you are opening it as their agent under a power of attorney. The bank will keep a record of this. If the account earns interest or generates tax documents, those documents will go to the principal, not the agent.
Can an agent open an account at a different bank than the one the principal uses?
Yes. The power of attorney gives the agent authority to open accounts anywhere, unless the document specifically limits it to one bank. However, different banks have different requirements and different forms, so the process may vary. Call ahead to ask what you need to bring.