Mrs. Schultz walked in her attorney's office frustrated and confused. Dispensing with the usual pleasantries, she vented her displeasure on the hapless lawyer.

"You drafted this power of attorney for my brother," she said, throwing the document on the conference table, "and it doesn't work!"

The target of her ire was taken aback. "What do you mean?"

"I took it to the bank and they said it wouldn't work. I brought him here to you so I could take care of things if he got dementia like our parents had. You said I could use this to pay his bills, but the bank won't let me."

"What did they tell you?"

She was sitting on the edge of her chair, her face tight, back taut. "They said they only honor their own form. They don't honor forms drawn up by lawyers."

The light begins to dawn!

"Now I know where your brother banks! He didn't bank there formerly, did he?"

She shook her head and began to subside. "Nope. They bought up the bank where he used to have his accounts."

Her attorney nodded. "That bank is known for not honoring powers of attorney. And bank policies change, too, so a bank that used to honor powers of attorney can stop. Other banks sometimes review them so rigorously that none actually qualify.

"Right now, your brother's bank and other banks, and securities brokers and insurers can refuse to honor powers of attorney. There is no Maryland law that requires them to. But that's about to change. On October 1, a new law will come into effect that requires everyone to honor powers of attorney.

"But there's more. If your brother is still able to sign a power of attorney, we can have him sign the new statutory form power of attorney. Then if the bank refuses to honor it, we can sue them to enforce it, and get them to pay our attorney's fees."

"That's encouraging," she sighed.

"Now I know your brother is suffering from dementia," her attorney commented. "How far has it progressed?"

She shrugged, and relaxed a bit. "He's still 'with it,' but every once in awhile has really bad days when he doesn't know who I am. I went to the bank for him this morning because he's had an operation and can't get out."

"Has he ever been certified to be incompetent?"

"No," she shook her head, "but his doctor has told me that he's worried about the dementia progressing."

Her attorney nodded. "Why don't we get together with him. Where can we meet?"

"You'll need to come to my house," she replied. He really can't get around too well."

"OK, I'll come to your house and we can discuss updating his power of attorney and signing the new statutory form. If he's willing and understands what's going on, we can get the new forms signed and you can use them in the future."

"That sounds good. But what do I do now? I can't wait until October 1 to pay his bills! I need to transfer some money from savings to checking to write the checks."

"Why don't you go back to the bank and ask them if they will let you take their form to your house for your brother to sign. Some banks will do that for you. See if the manager will come to your house to watch him sign, if they're worried about you forging his signature.

If they absolutely won't work with you, tell them you know about the change of the law, and let them know that you'll move his accounts on October 2 if they won't work with you!"