Powers of Attorney Guide
A Power of Attorney (POA) is one of the most important estate planning documents you can have. It allows someone you trust to act on your behalf if you become unable to manage your own affairs. Pennsylvania's POA law (20 Pa.C.S.A. § 5601 et seq.) has specific requirements.
Types of Power of Attorney
Financial POA: Authorizes your agent to handle financial matters — banking, bill payment, real estate, tax filing, investment management. Healthcare POA (Healthcare Proxy): Authorizes your agent to make medical decisions when you cannot. These are separate documents and should both be in place.
Durable vs. Springing
Durable POA: Takes effect immediately upon signing and remains effective if you become incapacitated. This is the most common and recommended type in PA. Springing POA: Only takes effect upon a triggering event (usually incapacity as certified by a physician). While this may seem safer, springing POAs can cause delays when the agent needs to prove the triggering event occurred. Most estate planners recommend durable POAs.
PA Execution Requirements
To be valid in Pennsylvania, a POA must: be signed by the principal (the person granting power), be witnessed by two adults who are not the agent, include a 'Notice to Principal' section acknowledging the document's significance, and be notarized. The agent must also sign an acknowledgment agreeing to act in the principal's best interest.
Powers You Can Grant
PA law allows you to grant broad or limited powers. Common powers include: managing bank accounts, buying/selling real estate, filing taxes, managing investments, applying for benefits (Social Security, Medicare, VA), making gifts, handling insurance claims, and managing digital assets. You can limit the agent's authority to specific tasks or accounts.
Choosing Your Agent
Select someone who is: trustworthy, financially responsible, available (geographically and in terms of time), willing to serve, and capable of handling conflict (they may need to push back on family members or institutions). You can name co-agents or successor agents. Most people choose a spouse, adult child, or trusted friend.
Revoking a POA
You can revoke a POA at any time while you are mentally competent. To revoke: prepare a written revocation, notify the agent in writing, notify any institutions that have a copy (banks, healthcare providers), and record the revocation at the county recorder's office if the original POA was recorded.
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Power of Attorney Knowledge CenterDisclaimer: This guide is for educational purposes only and does not constitute legal advice. Every case is different. For guidance specific to your situation, consider booking a consultation with a PA licensed attorney.