Question from George, Can Fidelity Investments or any other brokerage force me to institute a power of attorney over my account?
Answer from AI:
In general, a brokerage firm like Fidelity Investments cannot force you to institute a power of attorney (POA) over your account if you are a competent adult. The decision to grant a POA is typically voluntary and is often used as a tool for estate planning or in situations where an individual may not be able to manage their own affairs due to health or other personal reasons.
Understanding Power of Attorney
A power of attorney is a legal document that gives someone else the authority to act on your behalf in certain situations. This person, known as the agent or attorney-in-fact, can manage your financial affairs, make healthcare decisions, or perform other tasks depending on the scope of the POA.
Brokerage Firms and Power of Attorney
Brokerage firms, like Fidelity Investments, generally have policies and procedures in place to handle situations where a client wants to grant a POA over their account. However, these firms cannot force a client to grant a POA. The decision to do so is entirely up to the client.
Regulations and Laws
In the United States, the laws governing POAs vary by state. However, the Uniform Power of Attorney Act, which has been adopted in some form by many states, provides a general framework for the creation and use of POAs. According to this Act, a POA must be voluntarily granted by a competent adult.
When to Consult a Legal Professional
If you feel that a brokerage firm is trying to force you to grant a POA over your account, it may be beneficial to consult with a legal professional. They can provide personalized advice based on your situation and the laws in your state.
Remember: While this information provides a general overview, it is not legal advice. Laws and regulations can vary by location and individual circumstances. Always consult with a legal professional for advice tailored to your situation.
For more information on powers of attorney, you can visit the American Bar Association’s resource page or the Legal Information Institute’s overview.
The answer is written by AI.
The text above is written by AI, i.e., a computer.
Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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