Cecil Harvell emphasized that adding a child’s name to financial accounts makes them a co-owner and advised using a well-drafted durable power of attorney (POA) tailored to North Carolina law instead of internet forms. He explained the durable POA should be recorded with the Register of Deeds when needed, contain specific grants of authority (including creating trusts), name alternate agents, and that the agent often should also serve as executor to ensure continuity. He warned that joint ownership risks loss of assets and disputes, whereas a recorded durable POA gives an agent fiduciary duties to manage affairs and avoids costly guardianship proceedings.

Importance and preferred approach

• Durable power of attorney (POA) is recommended over adding a child’s name on accounts to allow them to pay bills and manage finances without changing ownership of assets; adding a child as joint owner creates ownership and associated risks (e.g., creditor claims, inclusion in child's estate) [01:16][07:25].

• A well-drafted durable POA is described as a “threshold” document that operates during life to allow agents to pay bills, handle financial affairs, file tax returns, make insurance claims, and otherwise act for the principal; it can prevent costly and emotional court guardianship proceedings if no POA exists [03:38][09:08][11:17].

Drafting quality and scope

• Not all POAs are equal: avoid generic internet or bookstore forms; use a trust/estate lawyer to draft a POA specifically incorporating North Carolina statutes and tailored grants of authority [03:38][04:06][06:27].

• The firm’s POA templates are detailed (8–10 pages single-spaced) and include specific grants (e.g., authority to buy/sell securities, create revocable or irrevocable trusts on the principal’s behalf to address long-term care planning) to ensure institutions will accept and rely on the document [05:04][10:23].

Registration, recording, and handling of originals/copies

• Financial institutions commonly review POAs with their legal departments before accepting them; institutions often require the POA to be recorded with the Register of Deeds to be fully operative for transfers and major actions [02:40][03:09][15:21][15:50].

• The original POA should be kept with the principal/agent and only recorded (or a copy provided) when it becomes necessary for the agent to act; once recorded at the Register of Deeds it becomes operative and acceptable to institutions [14:25][16:16][16:46].

• Photostatic copies of the recorded document are circulated to banks, brokers, DMV, IRS, etc.; institutions may request to view the original and sight identification but do not keep the original [14:53][13:31][13:03].

Durability, amendment, revocation, and alternates

• “Durable” means the POA remains effective during the principal’s incapacity and continues in effect while needed [10:47][11:17].

• POAs should name primary and alternate agents so a successor steps in automatically if the primary cannot act; if changes (revocations or amendments) are made, those changes must be in writing and, if previously recorded, the revocation/amendment should also be recorded [17:11][18:06][19:32].

Choosing an agent and relationship to executor

• Best practice: the person acting as agent under the POA should also be the executor of the estate, because the agent will already be informed about financial and administrative matters and will ease the post-death transition [19:56][20:24][21:23].

• If different people are chosen, discuss the reasons and consider appointing co-agents (jointly and severally) or using alternates to balance oversight and involvement of multiple children [22:40][23:10][23:35].

Fiduciary duties and risks of joint ownership

• An agent acting under a recorded POA has fiduciary duties to act in the principal’s best interest; in contrast, a joint account holder (added as owner) can use funds without fiduciary constraints, creating opportunities for misuse and litigation [26:16][26:45][28:00].

• The firm regularly handles litigation where joint ownership led to misappropriation, and a durable POA reduces this risk while preserving ownership [27:13][28:25].

Practicalities, costs, and recommended next steps

• One recorded, well-drafted POA suffices for multiple institutions—make copies and provide them where needed rather than drafting separate documents for each bank or investment firm [13:03][14:01].

• The POA can be used at the Register of Deeds, DMV, IRS, and with financial institutions; institutions will often ask for identification of the agent when accepting copies [13:31][14:53].

• Cost: well-drafted POAs at an experienced estate/trust firm are described as modest (a few hundred dollars) compared to the expense and emotional cost of court-ordered guardianship [11:43][12:37].

• Recommended action for listeners: review existing estate documents at year-end, avoid Internet/AI-only forms, consult an experienced estate/trust attorney, record the POA when the need arises, and keep original documents with family and circulate recorded copies to relevant institutions [05:59][06:27][28:00][29:11].

Miscellaneous practical notes

• Institutions commonly have legal departments review POAs and may take hours to a day to evaluate a submitted POA; patience and accurate, specific drafting avoid delays [02:40][03:09].

• The attorney emphasized educating clients, asking detailed background questions (marriage history, children, prior marriages) to craft tailored estate plans that reflect the client’s full “life puzzle” and avoid common misconceptions about inheritance and account ownership [24:22][25:19].