• 07
  • June
    2010

If you have a valid power of attorney, a sophisticated financial institution like Bank of America will honor it, right? The answer in the case of Clarence H. Smith Jr. is yes, but only after a court orders it to honor the power of attorney.

Florida estate planning lawyers were very interested in the case of Smith v. Bank of America. Back in 2007, Smith asked Bank of America to transfer money from an account held by his father, Clarence H. Smith Sr. The elder Clarence Smith had a joint account with a female friend that also lived at the same place he did, Ocean Palms Retirement Center.

Clarence Smith Jr. became suspicious when money seemed to be disappearing from his father's account.

He presented to the bank manager a durable power of attorney that gave him authority over his father's bank accounts, and requested that nearly $65,000 be transferred to an account that he and his father had access to.

But the bank refused. They called the woman who shared the account with Smith Sr., and she accused Smith Jr. of power of attorney abuse.

The bank claimed that their own rules did not allow transfer of funds unless all signatures on an account agreed to a transfer or any other change.

The bank manager even visited Smith Sr., and could see that he was competent and that he wanted Smith Jr. to manage his financial affairs. Nonetheless, she still refused to recognize the power of attorney.

Then, the woman who shared the account took all the money out. Smith Sr. died three weeks later.

A jury took only fifteen minutes to determine that the bank was wrong not to honor a valid power of attorney. They awarded the full $64,142 to Clarence Smith Jr.

  • Source: Stuart News "Stuart man takes on Bank of America" 11/15/09                                                                                   aar