Banking question (checks, signing with POA, etc)

[ObviouslyNotAGolfer]

Hi,

I have power of attorney (DPOA) over my elderly father and have recently begun signing his checks as instructed by my lawyer:

FATHER'S NAME
MY NAME
ATTORNEY IN FACT FOR FATHER'S NAME

I paid one bill for him signing this way and it went through with no problem--I checked his online account and the check posted. Now I signed another one of his checks--made out to me, for money management purposes--this same way. I deposited it to my credit union using their mobile app, which allows deposits by photographing both sides of the checks. It went through immediately and credited to my account immediately.

Here are my questions about this:

1.) How closely do banks scrutinize signatures--either by software or by actual employee? My guess would be "very little if at all" for amounts under several thousand dollars.

2.) Are they concerned that anyone could steal checks then go wild signing by pretending to have POA? I wonder how often this happens? Should I call his bank and explain what I am doing and offer to provide a copy of the signed, notarized POA document?

3.) Once the funds are in my account (but not posted to his bank), could his bank then look at the check and say: "WTF--we're taking the funds back!"? My credit union told me that once the funds are in my account (as they are now), there really is no way for his bank to do this...

Thanks.

[chasingthegoodlife]

I’m not American but would definitely do #2.

Banks often have protocols to identify elder abuse (sadly a huge issue and often perpetrated by adult children) so best to have everything properly recognised from the beginning and avoid being caught up in that.

[chasingthegoodlife]

Oh and for the same reason you may be better off working with your father’s bank to gain easier access to his account than intermingling his funds with your own. Much easier to show all funds have been used for his benefit should there be any future concerns raised about this.

[iluvzbeach]

My career has been in banking.

Most checks under a certain amount aren’t reviewed by the FI for signature.

Yes, you should provide your father’s FI with a copy of the POA document. They may have you fill out additional paperwork and have you sign some things.

You should write checks directly from his account for his expenses and really only write checks to yourself if you have documented reimbursements that are needed. Otherwise, keep his money separate from yours to avoid any question of impropriety.

[Hotstreak]

Nobody really looks at signatures for those types of transactions.  If you go in to the bank to cash one of these checks, they'll probably reject the transaction unless they have the POA on file.  I would go into the bank with your father and have them do the paperwork... they will add you as POA on the account, so you will have regular access just like he does. 

[ObviouslyNotAGolfer]

Thank  you gentlemen, good advice!