Can I Authorize Someone Else To Sign My Check

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Latest post Wed, Mar 4 2009 1:52 PM by TownWithoutPity1. 4 replies.
  • Wed, Mar 4 2009 1:41 AM

    Question [=?] Can I Authorize Someone Else To Sign My Check

    California, but anywhere a bank does these type of transaction. 

    Papers have been drafted that appoints another person as my Attorney-in-Fact, referred to as Agent, to permit the Agent to endorse checks made out to me, making deposits and withdrawals, initiating ACH transactions, transfers, and routine banking matters. I want the Agent to open an account in his name only and I contact the payers of these funds to begin sending them and/or routing them to the Agent's account. Some payors' want to keep the payee me. But I'm afraid the receiving bank (that my Agent opens) will not accept the deposit because my Agent's name is different than mine and I am not on his account.

    I know I have made numerous deposits to others account, such as my daughter's checking account, but always the deposit was in cash.  
    My question is: Can an account be opened such as a business account, checking or savings or other, that allows for deposits, paper checks and/or ACH (direct deposit) from financial institution sources who have me as payee yet send them to my Agent's account for deposit.?

    Steve Murphy

  • Wed, Mar 4 2009 11:04 AM In reply to

    • Drew
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,418

    Re: Can I Authorize Someone Else To Sign My Check

    I think you are overengineering it and likley to compound issues--for example if I owe you $1000 but you instruct me to pay Henry the $1000 I'd want lots of extra paperwork to confirm same. And frankly I don't like idea of agent opening his own account  for me.


    A simple limited POA for your associate to act in certain narrow roles should  it --the practical problem is banks sort of want it on thier forms and or thier counsel to approve and simply may put if just the POA is presented--so why not ask bank what  they need and start from there.


    I've never had a problem getting funds into an account.


    I've had issues getting funds out because of banks internal rules but quickly found ways to sidestep same.


    Now if you need a medalion signature guarantee I'm not sure a POA cuts it!


    If the hidden issue is your mental capacity--a POA may fail al least opportune moment--you need a DPOA.


    You may be inviting  tax problems if you are using nominee payees.


    There is something to your  post you are not posting? 


      Is this a live in partner?




  • Wed, Mar 4 2009 12:08 PM In reply to

    Re: Can I Authorize Someone Else To Sign My Check

    There's no question that you CAN do this, and probably very easily.

    But it seems like you are just making it easy for somebody to abscond with your money.

    Why would you want to do this in the first place? Evade taxes? Shield assets from Medicaid? Or?



    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Wed, Mar 4 2009 12:41 PM In reply to

    Re: Can I Authorize Someone Else To Sign My Check

    Several points here. First, the people that you deal with don't have to accept a POA; they can insist on dealing directly with you.

    Second, folks paying you money could send a check in your name care of your agent for your agent to handle for you once they have the POA. But they should not make the check out to your agent alone for several reasons.

    • It raises issues for them in proving that they paid you what they owe you.
    • They still will have to report any income you earned to the IRS as received by you--and making checks made solely out to your agent could raise difficulties in proving to the IRS what they paid you and may make it harder to prove their deductions.

    Third, what you propose is dangerous for you. Having the account solely in the agent's name means the agent has sole control over your funds, with the possibility that you could lose those funds either to a creditor of the agent, or through negligence or outright theft by the agent. An account in your name with the agent as an authorized signatory doesn't eliminate all risk of troubles with the agent, but it does reduce it.

    Fourth, understand that what you propose to do will not allow your funds to escape attachment by creditors. Those funds are still yours and attachable by your creditors once they meet the legal requirements to attach your assets.

    What is the purpose of this arrangement? If it is merely for your convenience, then why not simply have the bank account opened with your name and with the agent as an authorized person? That would eliminate any problem with the bank accepting deposits made out to you, and would give you more control over the bank acocunt should you need it.

  • Wed, Mar 4 2009 1:52 PM In reply to

    Re: Can I Authorize Someone Else To Sign My Check

    Thanks for all the input. I am not trying to avoid any taxes, medical or etc.. I believe I did complicate this investing deal I planned. But, after reading through my Post and other notes and letters about this plan I see why some would be puzzled. My intent is good but I will visit a local bank.



    Steve Murphy

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