Understanding Power of Attorney in Texas: A Comprehensive Guide (Part 4)

Welcome to Part 4 of our comprehensive guide to Power of Attorney (POA) in Texas. In this section, we will delve into the responsibilities and obligations of businesses and third parties when presented with a durable power of attorney. Understanding how entities should respond to a POA is essential for ensuring a smooth process when your agent needs to act on your behalf.

Responsibilities of Businesses and Third Parties

When a person presents a durable power of attorney (DPOA) in Texas, businesses and third parties have certain legal responsibilities and obligations. These include:

1. Acceptance or Rejection: Within ten days of receiving a DPOA, businesses must either accept or reject it. If rejected, they must provide a written explanation for the rejection.

2. Request for Certificate or Opinion: Businesses may request the agent to sign a certificate or provide an opinion of counsel regarding the validity of the DPOA within ten days of receiving it.

3. Request for English Translation: If the DPOA is in another language, businesses have the right to request an English translation within five days of receiving it.

4. Grounds for Rejection: There are specific statutory reasons under which a third party can reject a DPOA in Texas. These include:

   • Having a good-faith belief or knowledge that the DPOA is no longer valid.
   • The agent exceeding their scope of authority.
   • Suspected elder financial abuse.
   • Suspicions of criminal activity involving the principal or agent.
   • The transaction would violate Texas or federal law, regulation, or ordinance.
   • Conflicting directions are received due to multiple agents.

What to Do If Your DPOA Is Rejected

If you believe that your DPOA is being wrongly denied by a business or third party, it's essential to understand your legal options:

1. Consult with an Attorney: Seek legal counsel to assess the situation and determine whether the rejection is valid or if it contravenes the law.

2. Resolution with the Business: Attempt to resolve the issue with the business directly by providing any necessary documentation or clarifications.

3. Legal Action: If all else fails and you believe your rights are being violated, you may consider taking legal action to enforce your DPOA.

Conclusion

Understanding the responsibilities and obligations of businesses and third parties when presented with a durable power of attorney is crucial for ensuring that your agent can effectively manage your affairs when you are unable to do so. Texas law provides safeguards to protect the interests of the principal while allowing agents to carry out their duties.

By comprehending these legal aspects and having a legally valid DPOA in place, you can be well-prepared for any situation that may require your agent to act on your behalf.

This concludes our comprehensive guide to Power of Attorney in Texas. We hope you have found this information valuable and that it empowers you to make informed decisions regarding your legal and financial affairs.

If you have any further questions or require legal advice specific to your situation, it is advisable to consult with a qualified attorney who can provide personalized guidance.

Thank you for reading our guide, and we wish you the best in your endeavors to protect your interests and ensure your wishes are honored.

TEXAS POA LAWS