The Cautionary Tale: Why a Power of Attorney Alone Isn’t Enough

Everyone agrees that a precautionary approach is essential—especially when it comes to safeguarding your financial and physical well-being. Yet, when faced with a sudden health crisis or life event, very few people have truly prepared to protect themselves or their loved ones from unnecessary stress and bureaucratic hurdles.

Last weekend, we received a distressing call from a financial advisor we’ve worked with for years. This time, however, she wasn’t calling about a client—she was facing an emergency in her own family. Her mother had suffered a stroke, and she was overwhelmed by the immediate questions:

• What benefits were available?

• Which household and personal bills needed to be paid?

• How could she access her mother’s accounts?

• What long-term care would her mother need—and what could they afford?

Protecting Your Financial & Physical Well-Being

Like many, she assumed that having a signed Power of Attorney (POA) for healthcare and property, along with a folder of old account statements, was enough. But in reality, she was met with delays, denials, and red tape—despite having a clear, valid POA in hand.

The Harsh Reality of POA Limitations

Over the course of next 48 hours, armed with a clear and valid Power of Attorney document, she was:

• Denied access to her mother’s checking account to pay her bills - while this bank had the POA on file, their paperwork had never been completed;

• Declined a copy of investment statements from her Mother's Financial Advisor as they had no record of a POA or trusted person in the Account Profile nor was their specific POA documentation ever completed & filed;

• Blocked access to her mother’s health records as the hospital required a Physician's Letter of Capacity to trigger the Healthcare POA.

  
  

The truth? Signing a POA is just the first step. Financial institutions and healthcare providers often impose additional requirements before granting access or sharing information—even to someone who is clearly legally authorized. Worse, many won’t grant online access under emergent circumstances like these. Their systems are set up only to allow access when the account holder had previously authorized it.

The Hidden Roadblocks You Need to Know

Each institution has its own rules. For example:

• Banks & investment firms - like J.P. Morgan, Fidelity, or Genworth Financial - require a notarized copy of the POA sent to their accounts department, followed by a weeks-long review process. They also require that their version of the POA or Trusted Person Authorization Form be signed by the account holder—impossible if they’re incapacitated.

• Healthcare systems & providers often require a Letter of Incapacity or a doctor’s confirmation that the patient cannot make decisions before sharing information or granting access to electronic health records like LiveWell or MyChart —even though that very medical record contains the proof they need.

  
  

A POA Isn’t Enough—You Need a Plan

Power of Attorney - More Than Just A Document

As this family learned, a notarized document alone won’t unlock critical information when it matters most. True protection requires:

✔ A clear, up-to-date snapshot of accounts, assets, and benefits.

✔ Pre-established authorizations with each bank, insurer, and provider.

✔ A centralized file that your trusted person can access immediately.

Don’t Wait—Act Now

There’s no better time than today to ensure your POA will work when needed. At Tight Ship Advisors, we help you build a comprehensive, ready-to-use POA Preparation File—so your loved ones never face unnecessary barriers in a crisis. poa-planning-preparation

Contact us today to secure the access and peace of mind you deserve. info@tight-ship.com