Answer:
Answer by John Burnett: I'll freely admit that I have a profound distaste for "relinquishments" of accounts, especially when an alternative approach can arrive at the same result. When a power of attorney is involved, I am even more suspicious of attempts to change ownership of financial assets. In this case, John is the joint owner to one or more accounts. As the joint owner, he has every right to withdraw all of the money from the accounts and establish separate accounts in his own name. The end result is the Jack no longer has an ownership interest in the funds.
Answer:
Answer by Ken Golliher: A fundamental rule is that a fiduciary should not benefit from the actions he takes. Signing a form that turns the principal's account into his own would be a very good example.
Assuming the law of your state explicitly recognizes the term "relinquishment," your bank is not obligated to accept it in this circumstance. If John wants to close the account, that's fine. Your bank would make the check payable to Jack.
Either way, make certain there are no automatic deposits to this account; e.g. SSA payments...
First published on BankersOnline.com 2/4/13
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