Account Authorizations and Legal Documents
Chapters in this video
- 0:00 Why third-party authority needs paperwork
- 1:20 Limited vs full POA, and the withdrawal trap
- 2:33 Non-durable default vs durable, and death ends all POAs
- 4:00 Trust agreements and the trustee's bound powers
- 5:10 Corporate resolutions and articles of incorporation
- 6:15 Trading authority vs discretion: security, quantity, action
- 8:00 Rapid-fire exam recap
What this video covers
- Why a limited power of attorney (also called trading authorization) lets a third party trade but never withdraw funds or securities
- What a full power of attorney adds: the ability to withdraw cash and securities on top of trading
- The non-durable default rule, and why a POA must explicitly say "durable" to survive the principal's incapacity
- The most-tested gotcha: all POAs, including durable ones, terminate the instant the principal dies
- How trust accounts work, why the trust agreement (or certification of trust) caps what the trustee can do, and the trustee's fiduciary duty to beneficiaries
- What a corporate resolution authorizes, why articles of incorporation come first, and who on the board actually adopts it
- The three triggers that turn trading authority into discretion: security, quantity, and action (asset, amount, action)
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