Back to BlogAt New Direction Trust Company, the security of our clients’ accounts is our top priority. We are constantly taking measures to combat fraud, identity theft, and cybercrime to keep accounts secure, part of this effort includes limiting account access to only authorized individuals.
Who could I grant access to my account?
Up until recently, we allowed clients to designate third-party account access to what we refer to as an “Interested Party.” This individual was allowed to receive information such as account balances, assets, billing information, and transaction progress for an account. They could not make changes to the account, transact, or close the account. Typically, this individual was a spouse, financial advisor, or attorney of the account holder.
Clients could also designate a Limited Power of Attorney (LPOA) to grant an individual access to an account. Doing so granted the LPOA power to conduct transactions on behalf of the account holder, but did not allow them to initiate distributions, or transfers from the account.
What’s changing with these designations?
These designations were designed as a means to provide third-party access to an account to aid the account holder, however, in the event the account holder is no longer within capacity to manage their account, these designations aren’t necessarily beneficial to the account holder.
To eliminate confusion, tighten security, and ensure our designations align with what provides the most benefit to our clients, New Direction Trust is discontinuing the Interested Party designation and Limited Power of Attorney designation.
Effective March 1, 2025, NDTCO will no longer recognize Interested Party Designation forms (IPD) or the Limited Power of Attorney forms. Any form that has already been processed and activated on your account will be effective until March 1, 2025.
What New Direction will allow is a Durable or Financial Power of Attorney.
What is a Durable power of attorney?
A Durable power of attorney is a legally designated individual allowed to manage your financial and other affairs in the event you become incapacitated.
We understand that this change in our procedures may be an inconvenience for some of our clients. New Direction is excited about this change, and the peace of mind it brings to our clients, as we continually strive to protect our clients’ information.
If you have completed a Power of Attorney Designation and would like your Attorney in Fact to have access to help manage your account, please upload it through a secure client portal message, fax it to us or mail us a copy. Please be sure to provide the contact information for your Attorney in Fact.
New Direction Trust Company, as a non-fiduciary, does not determine the qualifications of the attorney-in-fact. Acceptance of the Durable Power of Attorney by New Direction Trust Company should not be interpreted by the principal or attorney-in-fact as an implicit or explicit endorsement of the attorney-in-fact’s qualifications, nor does it make the Attorney in Fact an Agent of New Direction Trust Company and its subsidiaries.
Power of Attorney Frequently Asked Questions
Can NDTCO assist me with creating a Durable Power of Attorney?
No, NDTCO is not able to provide financial, legal or tax advice. You will need to seek counsel from a trusted third party to assist you with this.
Why does NDTCO no longer recognize the Interested Party or Limited Power of Attorney on their clients’ accounts?
NDTCO takes the security of our clients’ accounts very seriously. As part of our efforts to make sure our clients’ information is as secure as possible, we realized that limiting the number of people who have access to their accounts is an essential part of this.
What is the Power of Attorney?
A power of attorney is a legal document that allows someone else to handle your legal, medical, or financial affairs. NDTCO will recognize a Durable Power of Attorney or a Financial Durable Power of Attorney.
What does NDTCO require to activate a Power of Attorney on my account?
NDTCO requires a copy of the legal document. In addition, we require your agent to meet the same verification requirements as a client. They will need to complete a form that provides us with enough information to complete the identity verification.
How quickly will NDTCO be able to add my agent or attorney-in-fact to my account?
NDTCO allots 10 days to process and activate this on an account. That allows time for reviewing the document, verifying the identity of the agent, and confirming the grantee has authorized the attorney-in-fact to be added to the account.
How can I provide NDTCO with my Durable Power of Attorney?
The document can be uploaded in the client portal, faxed or you can mail a copy. Please provide the name, phone number and email for the attorney in fact in your request.
