This query is received quite often, you could say on a weekly basis it comes up and is indeed a morbid topic, but preparation is always key so here we go …
“I would like to give XXX Power of Attorney to have full transactional ability on my account as well as in the event of death that they can withdraw funds for whatever expenses that may arise, can this be done.” The short answer is NO.
Corporate cash manager (CCM) accounts are regulated in the same manner as normal everyday transactional bank accounts would be, the same rules and regulations apply with a few exceptions. For instance, if you are married in community of property both spouses accounts are frozen until the estate is wound up, this does NOT apply to CCM accounts. However, the majority of the rules are the same and have to be enforced to ensure compliance.
In the event of notification of a person’s death, CCM accounts are” frozen” and no withdrawals or requests can be actioned; there are no exceptions.
The only transactional activity that will remain in place are transfers into the account until such time depositors have been notified by the executor to transfer into the estate late account that has been specially opened by the executor to administer the estate.
Once an executor has been appointed and the necessary paperwork and instructions are received, funds in the CCM account are transferred into the estate late account for the executor to utilise to finalise the estate and the CCM account is closed. Beneficiaries of the estate would need to contact the executor directly should there be a need for funds.
In essence, a Power of Attorney is only in effect and honoured during the account holders lifetime. The individual that has been nominated to have Power of Attorney on the account will have full transactional power, however, once the account holder passes on the Power of Attorney is immediately revoked and becomes null and void and can no longer be utilised.
A Power of Attorney does not entitle the nominated individual as a beneficiary of the CCM account upon the death of the account holder as per normal transactional bank accounts this would form part of the deceased estate.