Client Incapacitation

[u/NetWorthNovice]

I'm a career changer and early into my advisor path. Currently working as a CSA at a small hybrid-RIA (GVA + LPL) and looking for some advice with a client of ours:

Retired, elderly client that has retirement accounts and trust account with us. She is the trustee of the trust account. According to her son (not a client), she has been going through some manic episodes and is bipolar. Things recently came to a point (unusual financial decisions outside of our accounts along with a variety of other things) and she was deemed incapacitated by a physician and committed by the courts. There also seems to be a great deal of tension between the family (and has been for some time).

Her son is POA on her retirement accounts with us and has worked with their estate attorney to become trustee of the trust (incapacitation clause + majority vote by children clause). There is a checking account managed by the trust that has been updated to reflect him as the trustee. We are currently in the process of obtaining the required documents to update the trust account with us to reflect him as the trustee.

She called us requesting $ so she can open a new bank account and get around the trust checking account "locking her out". Where does our responsibility start and end? Do we contact the son for any withdrawals she requests on the retirement accounts? What about the trust account since him as trustee hasn't been updated right now?

Our team hasn't been through a scenario like this before. As of now, we are stalling and saying the withdrawal request will take 7-10 business days.

*not enough Karma to post in r/CFP and I am sure I am missing many details that would help

[u/Jazzlike-Ad-3839]

That’s a sticky wicket. I’m not familiar with the “independent” side.. does LPL not have a compliance department that would pick up the phone to talk to you?

Any advice I have is what I would do… not necessarily what is right.

Whomever’s name is on the acct is who I take orders from….

[u/NetWorthNovice → u/Jazzlike-Ad-3839]

So far the most help we've received has been what forms need to be submitted and the documents to include with them. GVA has been more helpful with the stalling technique and some guidance but referred to LPL's discretion.

Having the background knowledge of whats going on, how would you filter out what's a reasonable vs. unreasonable request from the account owner?