What an Agency Account Does
An agency account is a bank account where the owner names another person as an authorized agent. The agent can access the account and manage transactions on behalf of the owner. This arrangement is useful for people who want a trusted family member or advisor to handle day-to-day banking without giving up ownership of the account.
A financial institution on request of an agent under an agency designation for an account may pay to the agent sums on deposit in the account, whether or not a party is a party with disabilities, incapacitated or deceased when the request is made or received, and whether or not the authority of the agent terminates on the disability or incapacity of a party.
A.R.S. § 14-6224The key detail here is that the bank is protected when it pays the agent. Even if the account holder has become incapacitated or has died, the institution is not liable for honoring the agent's request, as long as it acts in accordance with the designation on file.
How This Relates to a Power of Attorney
An agency designation on a bank account is not the same thing as a durable financial power of attorney, though both give someone authority to act on your behalf. A power of attorney is a broader legal document that covers a wide range of financial decisions. An agency designation is specific to the account where it is set up.
For comprehensive planning, most families benefit from having both. The power of attorney covers general financial matters, while agency designations on specific accounts give the agent immediate access at the bank level without having to present additional paperwork. A partner attorney can help coordinate these tools so they work together without gaps or conflicts.
