Powers of Attorney Lawyers in Central Pennsylvania

What a Power of Attorney Does

A power of attorney gives another person, called your agent, legal authority to act for you. You remain the principal, and you can still make your own decisions while you have capacity. The agent’s authority is limited to what the document grants.

Pennsylvania law treats financial and medical decisions separately, and most clients sign two documents:

• Financial power of attorney: Covers banking, bill paying, real estate, taxes, insurance, retirement accounts, government benefits, and business interests.
• Health care power of attorney: Names a health care agent to make medical decisions when you cannot, and is usually paired with a living will that states your wishes about life-sustaining treatment.

Durable and Springing Powers of Attorney

A durable power of attorney stays in effect if you become incapacitated, which is the situation most people are planning for. A power of attorney can also be written to take effect immediately or only upon a later event, such as a physician’s certification of incapacity. These “springing” documents appeal to some clients, but they can delay an agent’s ability to act at a stressful moment, so we walk clients through the tradeoffs before recommending one approach.

Pennsylvania Requirements for a Valid Power of Attorney

Pennsylvania overhauled its power of attorney statute through Act 95 of 2014, and the current rules in Chapter 56 of Title 20 are stricter than those in many other states. Documents that do not follow them may be refused by banks or challenged later.

Signing, Witnesses, and Notarization

In Pennsylvania, a power of attorney must be dated and signed by the principal. The signature must be acknowledged before a notary public and witnessed by two adults. The agent cannot serve as a witness, and the notary cannot also be the agent. These requirements apply in addition to each other, so a document that is notarized but not witnessed does not satisfy the statute.

The Notice and the Agent’s Acknowledgment

The statute requires a specific notice at the front of the document, signed by the principal, explaining the authority being granted and the agent’s duties. The agent also has to sign an acknowledgment of those duties before acting. An agent who never signed the acknowledgment has no authority under the document, which is a common problem with older or self-prepared forms.

Powers That Must Be Granted Specifically

Pennsylvania law requires certain powers to be expressly authorized in the document. These include authority to:

• Create, amend, revoke, or terminate a living trust
• Make gifts of the principal’s property
• Create or change rights of survivorship
• Create or change beneficiary designations
• Delegate authority granted under the power of attorney
• Waive the principal’s right to be a beneficiary of a joint and survivor annuity
• Exercise fiduciary powers the principal holds
• Disclaim property
• Access the content of the principal’s electronic communications

Leaving these out can be a deliberate choice that protects the principal. Including them can be equally important, particularly for Medicaid and long-term care planning, where gifting or trust funding may be part of the strategy. 

What the Law Expects From an Agent

Pennsylvania imposes legal duties on every agent. Pennsylvania requires every agent to act in line with the principal’s reasonable expectations to the extent the agent knows them, and otherwise in the principal’s best interest, to act in good faith, and to stay within the authority the document grants. Unless the document says otherwise, agents must also act loyally, avoid conflicts of interest, keep the principal’s property separate from their own, keep records of transactions, and try to preserve the principal’s estate plan.

When we prepare documents, we explain these duties to the agent as well as the principal. An agent who understands the rules is far less likely to make a well-meaning mistake, such as commingling funds or making family gifts that the document does not authorize.

Health Care Powers of Attorney and Living Wills

Medical decision-making is governed by a separate chapter of Pennsylvania law. A health care power of attorney must be signed by the principal and witnessed by two adults. It can authorize the agent to consult with physicians, access medical records, consent to or refuse treatment, and make decisions about care facilities. A living will addresses end-of-life treatment if you are terminally ill or permanently unconscious, and many clients combine both into a single advance directive.

Without a health care power of attorney, Pennsylvania law allows a health care representative, often a spouse or adult child, to make some decisions. That fallback does not always result in what a person would have chosen, particularly in blended families or when relatives disagree.

When There Is No Power of Attorney, or It Is Being Misused

If a person loses capacity without a valid financial power of attorney, the family’s main option is usually a court guardianship proceeding. Guardianship involves a court hearing, medical evidence, ongoing reporting, and legal costs, and the court decides who will serve. Our guardianship and incapacity attorneys handle those proceedings when they cannot be avoided.

Powers of attorney can also be abused. Warning signs include unexplained withdrawals, changes to beneficiary designations, transfers of property to the agent, and an agent who refuses to share information with other family members. Pennsylvania law gives interested parties ways to ask a court to review an agent’s conduct and require an accounting, and our estate litigation team represents both families raising those concerns and agents defending their decisions.

Choosing the Right Agent

The best agent is not always the oldest child or the closest relative. Factors worth weighing include:

• Whether the person is organized, honest, and comfortable with financial records
• Whether they live close enough to handle in-person matters
• How other family members are likely to react to the choice
• Whether co-agents should act together or separately
• Who should serve as a successor if the first agent cannot

Many of the family conflicts we see trace back to an agent chosen out of a sense of obligation.

How We Prepare Powers of Attorney

Every power of attorney we draft starts with a conversation about your finances, your family, and what you want to happen if you cannot make decisions. We prepare the financial power of attorney, health care power of attorney, and living will to work together and with your will or trust. Documents are signed in our office with the witnesses and notary the statute requires, so clients leave with documents that banks and health care providers can accept.

Our experience with elder law, estate administration, and guardianship also informs how we prepare these documents. If long-term care becomes a concern, our elder law attorneys can build on the authority that the power of attorney already provides.

“If you want a knowledgeable and compassionate firm to handle your legal needs, look no further!”
– Crystal F., Google Review

Frequently Asked Questions About Powers of Attorney

Speak With a Lawyer About a Power of Attorney

Preparing a power of attorney is a relatively small investment that can spare your family significant legal expenses and complications later. Our team at CGA Law Firm can prepare new documents, review existing ones, and help families when a power of attorney is missing or in dispute. Our lawyers serve South Central Pennsylvania from several convenient locations. Call (717) 848-4900 or contact us online to schedule a consultation.