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 the owner's behalf.
This setup helps people who want a trusted family member or advisor to handle daily banking. The owner keeps full ownership of the account. Arizona law recognizes and protects this designation.
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 is that the bank is protected when it pays the agent. The account holder may be incapacitated or may have died. The bank is still not liable, as long as it follows the designation on file.
How This Relates to a Power of Attorney
An agency designation on a bank account is not the same as a durable financial power of attorney. Both give someone authority to act on your behalf, but they differ in scope.
A power of attorney covers a wide range of financial decisions. An agency designation applies only to the specific account where it is set up.
For broad planning, most families benefit from having both. The power of attorney covers general financial matters. Agency designations give the agent direct access at the bank without extra paperwork.