Why Banks and Medicaid Offices Sometimes Reject a “Valid” Power of Attorney

You’ve done the responsible thing. You signed a Power of Attorney, had it notarized, and tucked it away for safekeeping. But then, when your loved one needs Medicaid—or you walk into the bank to help manage their accounts—you’re told, “This isn’t good enough.”

We see this all the time, and it blindsides families.

A Power of Attorney is meant to let your chosen agent step in and act on your behalf. But not all POAs are the same. If yours doesn’t meet certain practical and legal standards, it may not hold up when it really counts.

Here’s why that happens—and what you can do to avoid it.

Outdated Language

Many Powers of Attorney drafted even ten years ago lack key powers or wording that banks and Medicaid offices now require. Laws change over time—and so do internal policies at financial institutions and government agencies. If your POA doesn’t reflect current language, especially around financial transactions and asset protection, your agent may find they can’t actually act for you when it matters.

Even well-drafted, attorney-prepared

Institutional Resistance

Let’s be honest: some banks and financial institutions are difficult on purpose. They prefer you use their internal POA forms, even if yours is legally sound. And while that’s frustrating, they’re often within their rights to slow things down or ask for a legal opinion before accepting outside documents.

This is where clarity and forceful drafting can make a big difference.

Execution Errors

Michigan has strict rules around how a POA must be signed. If the witnessing or notarization process wasn’t done correctly—or if one signature is missing—the whole document may be invalid. Even a small error can stop your loved one from stepping in when it counts.

We’ve seen families delayed by weeks or months because of simple formalities that went wrong.

Timing Problems

If the person who signed the POA is already incapacitated, it’s often too late to update the document or fix any vague language. That leaves the family facing guardianship court just to gain basic decision-making authority.

By that point, even small issues with the POA can lead to major legal complications—and unnecessary costs.

A Power of Attorney Should Work in the Real World

At Rutkowski Law Firm, we build POAs for the world we live in—not just what looks good in a binder.

That means:

• Using up-to-date, Michigan-compliant language
• Including strong powers tailored to financial and Medicaid planning
• Ensuring correct execution and durable enforceability
• Giving your family the clarity and tools they need to act confidently

If your current Power of Attorney hasn’t been reviewed in years—or if you’ve never had one prepared with long-term care in mind—this is the time to revisit it.

We’d rather help you get it right now than fix a preventable problem during a crisis.