How to Cash Bonds With a Power of Attorney

By Teo Spengler

If you are the agent under a financial power of attorney, the person who drew up the document appointed you to act for her in financial matters, including managing her portfolio and paying her debts. Bonds are one of the building blocks used to construct a balanced investment portfolio. To cash your principal's bonds, you'll need proof of your authority to act as her agent.

Financial POA

A power of attorney, termed a POA, is a legal document. The person drawing up the POA, the principal, names an agent to make her financial decisions for her. The agent under the POA owes the principal a very high duty of care to act at all times in her best interests and not to benefit himself at her expense.

Authority to Cash Bonds

Savings bonds and other government and corporate bonds are often included in a balanced investment portfolio. An agent under a POA has the legal authority to cash in the principal's bonds if doing so is in her best interests.

Ready to appoint a power of attorney? Get Started Now

Cashing In Bonds

You can cash paper savings bonds at many banks like you would cash a check. Bring identification and the POA documents proving your authority to redeem the bonds. For bonds held in an investment account, establish your POA authority with the investment company by providing the requisite documents, then redeem the bonds in the principal's investment account in person, online or by phone.

Ready to appoint a power of attorney? Get Started Now
Can I Refinance With Power of Attorney?

References

Resources

Related articles

Can a Power of Attorney Change Beneficiaries on Bank Accounts?

An individual who has been given authority via a power of attorney, also known as an "agent," may sometimes change beneficiaries on bank accounts. Although state law varies, this type of authority may only be granted in specific circumstances. When an agent wields authority she does not actually have --such as changing beneficiaries -- it may be considered an abuse of her power.

How to Fill Out a Power of Attorney

A properly completed power of attorney form allows one person, the agent, to act in place of another, the principal. The power of attorney is a legal granting of authority from the principal to the agent. The agent can perform certain actions for the principal as defined in the signed power of the attorney itself, such as signing a real estate contract or loan documents.

Assuming a Mortgage With Power of Attorney

While state laws regarding powers of attorney vary, a power of attorney can allow one person to conduct financial transactions on another person's behalf. This may include the power to buy and sell real estate. The power of attorney may also include the power to assume a mortgage held by another person.

Related articles

Does Having a Power of Attorney Require Reporting How Money Is Spent

A power of attorney is a written authorization by which a person, or principal, authorizes another person, the agent, ...

Can I Change an IRA Owner With Power of Attorney?

If you have been named in a financial power of attorney document, you serve as the agent for the person who named you, ...

If I Have Power of Attorney, Can I Deed a House Over to My Name?

Power corrupts and absolute power can corrupt absolutely. A general power of attorney gives the agent the ability to do ...

Can I Give Someone a Power of Attorney to Cash My SS Check?

Generally, you can draft a power of attorney under your state's laws to appoint a third party, or agent, to handle your ...

Browse by category
Ready to Begin? GET STARTED