Power Of Attorney (Poa) Quiz

Explanation
A Power of Attorney (POA) and a Letter of Attorney serve the same purpose as they both grant someone the authority to act on behalf of another person in legal and financial matters. They are legal documents that allow an individual, known as the attorney-in-fact or agent, to make decisions and take actions on behalf of the principal. Both documents are used to delegate authority and can be customized to specify the scope and duration of the granted powers. Therefore, the statement that a Power of Attorney and a Letter of Attorney serve the same purpose is true.

Explanation
The explanation for the given correct answer is that CME (presumably referring to a specific organization or institution) has a requirement that all POAs (Power of Attorneys) must be presented to the Credit Union in writing. This means that any individual or entity seeking to authorize someone else to act on their behalf must provide a written document to the Credit Union, rather than relying on verbal or informal agreements. This requirement ensures clarity, accountability, and legal validity in the authorization process.

Explanation
CME does not have a legal obligation to accept any POA authorized by the Member as long as it is notarized.

Explanation
A POA may be used in situations where the Member is physically or mentally incapacitated, but it can also be used in various other situations where the Member is unable to make decisions or act on their own behalf. Therefore, the statement that a POA may only be used in situations where the Member is physically or mentally incapacitated is false.

Explanation
A POA, or Power of Attorney, is a legal document that grants someone the authority to make decisions and act on behalf of another person. However, this authority typically ends upon the death of the person who granted it. Therefore, a POA does not continue to be valid after the death of the Member who authorized it, making the answer "False".

Explanation
A "durable" POA is not terminated if the Member becomes disabled or incompetent. A durable POA is specifically designed to remain in effect even if the person granting the power of attorney becomes incapacitated. This means that the appointed agent or attorney-in-fact can continue to act on behalf of the incapacitated person, making decisions and managing their affairs as outlined in the power of attorney document. Therefore, the statement is false.

Explanation
A general or complete POA does not grant unrestricted authority to the designated agent. This statement contradicts the correct answer, which is False.

Explanation
A bank account is not an example of "real" property because "real" property refers to physical property such as land, buildings, or other physical assets. A bank account, on the other hand, is considered personal property or intangible property since it represents a financial asset rather than a physical one.

Explanation
In order for POA (Power of Attorney) documentation to be accepted, it must explicitly state that the person has the authority to handle financial transactions and access bank accounts. This is because financial transactions and bank accounts involve sensitive and important matters, so it is necessary for the POA document to specifically grant authority over them. If the POA documentation does not mention financial transactions and bank accounts, it may not be considered valid or accepted. Therefore, the statement "POA documentation must specifically grant authority over financial transactions and bank accounts in order to be accepted" is true.

Explanation
A "general" power of attorney does not automatically allow an agent to change a beneficiary designation on the Member's IRA. The agent would need specific authorization or a separate power of attorney document that grants them the authority to make changes to the beneficiary designation. Therefore, the statement is false.