RBC Bank Challenges Power of Attorney

WARNING from a friend: A family member temporarily lost mental capacity to conduct financial affairs last month. 

Fortunately, I prepared for this eventuality years before and already had a Power of Attorney (POA) registered with the banks.

To my shock and dismay, the Royal Bank of Canada refused to honor the POA. 

The bank manager explained it was out of their control because it has to be vetted by their lawyers. I can deposit funds, but not transfer or withdraw funds.

I texted my Notary who had prepared the POA. She replied that the government sets up a process for people to deal with their affairs and RBC is choosing to circumvent it.

I returned the next day with the family member in tow who had by now fully recovered and was able-bodied. 

We went to Envision and Scotiabank to check if they had the same policy, and both these institutions confirmed that the POA on file is valid. They were surprised that RBC refused to honor the POA. 

The only other option under consideration is to become a joint account holder, but that presents another issue because then you become the owner of the funds. In the event of litigation, these funds are accessible to a creditor. 

if you have been ruminating on this matter, it is time to take action and get that POA for your elderly parent(s) or disabled relative while they are mentally competent.