Legal Grounds for Rejection and Remedies
A Durable Power of Attorney (DPOA) is supposed to make life easier — allowing your chosen agent to handle your financial and legal affairs without delay. But in practice, many Floridians discover that banks, title companies, or insurance agencies sometimes refuse to honor these documents.
So what gives them the right to say “no”? And what can you (or your agent) do about it? Florida law provides a clear framework for when third parties can legitimately reject a DPOA — and when they’re crossing the line into unlawful refusal.
The Legal Duty to Accept a Valid DPOA
Under Florida Statute §709.2120, a third party — such as a bank or business — is required to accept or reject a properly executed power of attorney within a reasonable time.
- “Reasonable time” is defined as four business days after the DPOA is presented.
- If they reject it without valid grounds, they can be held liable for damages, attorney’s fees, and court costs.
This statute was designed to protect Floridians from endless red tape. Before it passed, financial institutions often refused DPOAs for arbitrary reasons, forcing families into court. Now, the law makes it clear: you can’t ignore a valid DPOA just because it’s inconvenient.
Legitimate Reasons a DPOA May Be Rejected
Even though third parties must generally accept a DPOA, they do have the right to refuse under specific legal circumstances.
1. The DPOA Is Invalid or Defective
If the document doesn’t meet Florida’s legal standards, rejection is justified. For example:
- It’s missing required witnesses or notarization.
- It wasn’t executed when the principal was competent.
- It doesn’t clearly identify the agent or their authority.
Florida requires:
- The DPOA must be signed by the principal, two witnesses, and a notary public.
- The document must grant specific powers, not vague or blanket authority.
A bank can refuse a DPOA that fails these requirements.
2. Knowledge of Revocation or Termination
If the institution knows the DPOA has been revoked, superseded, or terminated by death, they are legally required to reject it.
Example:
If someone tries to act under a DPOA after the principal has passed away, the DPOA is no longer valid — all authority ends at death.
3. Suspicion of Forgery or Fraud
A third party can lawfully delay or reject a DPOA if they have good-faith suspicion that:
- The document is forged.
- The principal is being coerced.
- The agent is attempting financial exploitation.
This protection allows institutions to investigate potential elder abuse without liability.
4. Request for Verification
The law permits third parties to request:
- A notarized affidavit from the agent stating that the DPOA is still valid and the principal is alive.
- An opinion of counsel confirming the document’s validity under Florida law.
If these requests are made in good faith, the institution can delay acceptance until the documents are provided.
5. Conflict with Federal Regulations
Sometimes federal rules override state law. For example, the Department of Veterans Affairs and Social Security Administration don’t recognize private DPOAs for managing federal benefits — they use their own fiduciary systems.
In those cases, the DPOA is valid under Florida law but ineffective for federal purposes.
Illegitimate or Improper Rejections
Florida law also protects principals and agents from unreasonable refusals. The following reasons are not valid grounds for rejection:
- The DPOA wasn’t prepared on the institution’s preferred form.
- The document was signed in another state but complies with that state’s law.
- The DPOA is “too old” (there’s no expiration date under Florida law).
- The third party “doesn’t feel comfortable” accepting it.
Example:
A Miami bank refuses to honor a DPOA because it’s seven years old, even though it meets every legal requirement. That’s an unlawful refusal — the bank could be sued under §709.2120 for damages and attorney’s fees.
Remedies When a DPOA Is Unreasonably Rejected
If a third party refuses your DPOA without valid grounds, Florida law gives you (or your agent) several options:
1. Request Written Explanation
You have the right to demand a written statement specifying the reason for rejection. Many institutions will reconsider once they realize they must justify their refusal under statute.
2. Provide Supporting Documents
Offer the agent’s affidavit or attorney opinion letter to eliminate uncertainty. This often resolves legitimate concerns quickly.
3. File a Court Petition
Under §709.2120(5), your agent can petition the Florida Circuit Court to compel acceptance of the DPOA. If the court finds the third party acted unreasonably, they can:
- Order the institution to honor the document
- Award attorney’s fees, court costs, and damages
4. Report Financial Exploitation
If rejection seems motivated by suspected fraud or elder abuse, contact the Florida Department of Elder Affairs or Adult Protective Services. They can investigate and coordinate with law enforcement if necessary.
Real-World Scenario
David executed a valid Florida DPOA naming his daughter as agent. When she presented it to his bank after he was hospitalized, the bank claimed it was “too old” and required their own internal POA form. After consulting an attorney, she sent a formal letter citing §709.2120, demanding acceptance or a written reason. The bank reversed course within days and granted access — avoiding what could have been a costly lawsuit.
How to Prevent Problems in the First Place
- Use a current, Florida-specific DPOA. Laws changed in 2011; older forms may not meet today’s requirements.
- Name backups. If your first agent is unavailable, a successor can step in without delay.
- Keep multiple certified copies. Some institutions require original or certified versions.
- Present it early. Don’t wait until a crisis. Submit your DPOA to banks and advisors while you’re healthy so they can review and approve it in advance.
- Include specific powers. Especially for real estate, gifting, or digital assets — vague language invites rejection.
Takeaways
- Florida law requires third parties to accept or reject a DPOA within four business days.
- Valid grounds for refusal include defects, revocation, fraud suspicion, or conflicting federal laws.
- “Too old” or “not on our form” are not legitimate excuses.
- If a DPOA is unreasonably rejected, your agent can petition the court and recover damages under §709.2120.
- The best prevention is a Florida-compliant, up-to-date DPOA presented and accepted before an emergency.
A properly executed DPOA is one of the most powerful planning tools you can create — but only if others respect it. Knowing your rights, and Florida’s legal remedies, ensures your chosen agent can act without interference when it matters most.
