What a power of attorney can and cannot do with a joint account

A power of attorney (POA) typically cannot close a joint bank account on their own, even if the document says they can manage that account. The reason is straightforward: a joint account belongs to both owners equally, and the bank usually requires both of them to agree before closing it. A power of attorney has authority to act on behalf of the person who gave them that power — but they cannot override the other account owner's rights.

There is one exception: if the account owner (the person who signed the POA) is present and consents, the power of attorney can help close the account as part of managing their finances. But if the other joint owner refuses, or if the account owner is unable to communicate their wishes, the account stays open.

The rules vary slightly by bank and by state, so what one bank allows another may not. The safest approach is to contact the bank directly and ask what they require before attempting to close a joint account under a power of attorney.

Key Takeaways

  • A power of attorney cannot unilaterally close a joint account because both owners have equal legal rights to the money and the account itself.
  • If the account owner is present and willing, the power of attorney can help close the account with both owners' consent.
  • Banks have their own policies on joint account closures and may require both owners to appear in person, sign forms, or provide written authorization.
  • If one joint owner is deceased, the surviving owner can usually close the account without the power of attorney's involvement.
  • If the account owner lacks capacity and the other owner refuses closure, you may need a court order or guardianship to proceed.

Why banks treat joint accounts differently

A joint account is legally different from an account where one person has power of attorney over another person's separate account. In a joint account, both owners have what is called survivorship rights or tenancy in common — the exact terms depend on how the account was set up and what state it is in. Either way, both owners have a claim to the full balance, and neither can unilaterally remove the other's access or close the account.

Banks protect this arrangement because they do not want to be sued by an owner who discovers their account was closed without their knowledge or consent. If a power of attorney closes a joint account without the other owner's permission, the bank could face a lawsuit from that owner, and the power of attorney could face legal liability as well.

This protection exists even if the power of attorney document uses broad language like "full authority to manage all accounts." The document's language does not override the other owner's legal rights to the account.

What happens if the account owner is incapacitated

If the person who signed the power of attorney loses the ability to make decisions — due to illness, injury, or cognitive decline — the situation becomes more complicated. The power of attorney can still manage the account on that person's behalf, but they still cannot close it without the other joint owner's consent.

If the other joint owner also wants the account closed, they can do so on their own, and the power of attorney does not need to be involved. But if the other owner refuses, or if there is disagreement about what should happen to the money, closing the account may require a court order. This is especially true if there are questions about who the money belongs to or how it should be divided.

In some cases, a guardianship or conservatorship — a court-supervised arrangement — may be necessary. These are more formal and restrictive than a power of attorney, but they give a court-appointed person clearer authority to make decisions about finances when the account owner cannot.

What to do if one joint owner has died

If one joint owner dies, the surviving owner can usually close the account without involving the power of attorney at all. The surviving owner straightforward needs to contact the bank with a death certificate and proof of their identity. The bank will remove the deceased owner's name and allow the survivor to close the account or keep it open as a single-owner account.

If the surviving owner is the one who is incapacitated, and a power of attorney was set up for them, the power of attorney can help manage the account closure on their behalf. But again, the bank will want to see the death certificate and may have specific forms for the power of attorney to sign.

Do not assume the bank will automatically close the account or transfer the money. Contact the bank directly with the death certificate and ask what steps are needed.

How to close a joint account when both owners agree

If both the account owner and the joint owner want to close the account, the process is straightforward. Contact the bank and ask what they require. Most banks will ask for:

  • Photo identification from both owners
  • A signed request to close the account (some banks have a specific form)
  • Confirmation of where any remaining balance should be sent

If one owner cannot appear in person due to illness or distance, many banks will accept a notarized letter or a power of attorney document. The power of attorney can sign on behalf of the incapacitated owner, but the bank will still want written confirmation from that owner (or a notarized statement) that they consent to the closure.

Some banks require both owners to appear in person. If that is not possible, ask the bank whether a notarized power of attorney document will work instead. Get this in writing before you make a trip to the bank.

When you may need a court order

A court order becomes necessary when the account owners disagree about closing the account, or when one owner is incapacitated and the other owner wants to close it but cannot get the incapacitated owner's consent. This can happen in several situations:

  • A spouse wants to close a joint account but the other spouse refuses.
  • An adult child has power of attorney for an aging parent and wants to close a joint account the parent shares with another sibling, but that sibling objects.
  • A power of attorney believes closing the account is in the incapacitated person's best interest, but the other joint owner disagrees.

In these cases, you would need to file a petition in the probate or family court in your county. The court can order the account closed and direct how the money should be divided. This process takes time and usually requires a lawyer, so it is worth exploring other options first — such as asking the other owner directly, or mediation.

What to ask your bank before you try

Before you contact a power of attorney lawyer or file anything in court, call the bank and ask these specific questions:

  • What is your policy on closing a joint account when only one owner is present or able to sign?
  • Will you accept a power of attorney document as authorization for one owner to close the account?
  • Do both owners need to appear in person, or can one sign a notarized letter?
  • If the other owner refuses to close the account, what options do we have?

Write down the name of the person you speak with and the date and time of the call. Banks have different policies, and what one branch tells you may differ from what another says. Having a record helps if you need to follow up or dispute what you were told.

Frequently Asked Questions

Can a power of attorney withdraw money from a joint account?

Yes, usually. A power of attorney can withdraw funds from a joint account on behalf of the account owner, as long as the bank recognizes the power of attorney document. However, the power of attorney cannot withdraw money that belongs solely to the other joint owner, and they cannot do anything that would harm the other owner's interests — such as draining the account to prevent the other owner from accessing it.

What if the power of attorney and the other joint owner are the same person?

If the other joint owner is also the power of attorney for the account owner, they have dual authority — as a joint owner and as the agent under the power of attorney. In this case, they may have more flexibility to close the account, but the bank will still likely require some documentation. Contact the bank to confirm their specific policy.

Can a power of attorney remove the other joint owner from the account?

No. A power of attorney cannot remove another person's name from a joint account or restrict their access. That would violate the other owner's legal rights. Only the other owner themselves, or a court order, can remove them from the account.

What if the joint account is in a trust?

If the joint account is held in the name of a trust, the rules are different. The trustee (not the power of attorney) has authority over the account. If you have a power of attorney for someone who is also a trustee, the two documents serve different purposes, and you may need to use the trust document instead of the power of attorney to close the account. Consult a lawyer who knows your state's trust laws.

How long does it take to close a joint account?

If both owners consent and the bank has no complications, closure can happen in a few days to a week. If the bank needs to verify the power of attorney document or if there are questions about the account, it may take two to four weeks. If you need a court order, the timeline stretches to several months depending on your court's schedule.