Estate Planning

Power of Attorney

A power of attorney allows you to appoint someone to act on your behalf if you become incapacitated. Pennsylvania law (20 Pa. Cons. Stat. Ann. §§ 5601–5612) was recently updated by Act 64 of 2023.

Types of Power of Attorney

Durable Financial Power of Attorney

20 Pa. Cons. Stat. Ann. §§ 5601–5612

Survives incapacity of principal. Must be signed, dated, and witnessed by two adults. Notarization recommended but not required. Agent has fiduciary duties.

Requirements:

  • Signed by principal
  • Dated
  • Witnessed by two adult witnesses
  • Notarization recommended
  • Agent must act in principal’s best interest

Recent Update: Act 64 of 2023 updated execution requirements effective 2024.

Healthcare Power of Attorney

20 Pa. Cons. Stat. Ann. §§ 5421–5447

Designates agent to make medical decisions if principal is incapacitated. Separate from living will. Agent can consent to or refuse treatment on principal’s behalf.

Requirements:

  • Signed by principal
  • Witnessed by two adult witnesses
  • Cannot be principal’s healthcare provider
  • Agent cannot be healthcare provider of principal

Agent’s Fiduciary Duties

An agent under a POA is a fiduciary with the highest duty of care and loyalty:

Act in the principal’s best interest at all times
Keep principal’s funds separate from personal funds
Maintain records of all transactions
Act within the scope of authority granted
Avoid self-dealing and conflicts of interest
Provide accounting to principal or court upon request

Common Abuses & Remedies

Self-dealing transactions

Agent uses principal’s funds for personal benefit, makes gifts to themselves, or purchases assets from the principal.

Failure to account

Agent refuses or fails to maintain records or provide accounting of transactions.

Exceeding authority

Agent takes actions beyond the scope of powers granted in the document.

Neglect of duties

Agent fails to pay bills, manage investments, or protect assets as a reasonably prudent person would.

Remedy: File a petition with the Orphans’ Court to compel accounting, remove the agent, or void unauthorized transactions. Immediate relief may be available via emergency petition.

When to Revoke a POA

  • 1

    The principal regains capacity and wants to handle their own affairs

  • 2

    The agent is not acting in the principal’s best interest

  • 3

    The principal’s circumstances change (e.g., divorce from agent spouse)

  • 4

    A new POA is desired with different terms or a different agent

Important: To revoke, provide written notice to the agent and all third parties who have relied on the POA (banks, financial institutions). Simply destroying the document is not sufficient if copies exist.

Legal Disclaimer

Notice: Estate administration and planning involve complex legal, tax, and fiduciary considerations. This information is provided for educational purposes. Consult with a licensed attorney and tax professional for guidance specific to your situation.

Content prepared under the supervision of a PA licensed attorney. Last updated April 2026.