A Power of Attorney is a key estate planning document that permits another person to act and decide for you. You will need such authority if you lose mental capacity or cannot act independently. All states use POAs, but laws and types can vary, even in Pennsylvania.
The POA executor (the "principal") appoints another individual (the "agent") to make financial or health care decisions on the principal's behalf. POAs only last as long as you live, so your agent can no longer decide on your property, possessions, or other matters if you pass away. If you die, your executor will open a probate estate for you.
POAs aren't only for the elderly, the infirm, or the incapacitated. The POA gives you and your spouse complete access to each other's financial affairs, including work-related documents like 401Ks.
If you become disabled temporarily or permanently, POAs can provide for your business succession. A POA can also be used when you plan to travel overseas and need someone in the United States to help your children or other dependents access your bank accounts.
Let's explore how this document works in the state of Pennsylvania further below.
Common POA Types in Pennsylvania
Often, a Pennsylvania power of attorney (POA) can make all the difference between a family, close friends, and the principal's financial future. Considering this, Pennsylvania revised its legislation (found in Title 20 of the PA General Assembly) to ensure powers of attorney are regulated fairly and clearly.
A principal can grant the following types of powers of attorney under PA law:
- General POA: An agent with a general POA controls all financial affairs, but the POA expires when the principal becomes incapacitated. Agents control bank accounts, investment portfolios, real estate, and business interests.
- Durable POA: An agent can exercise durable powers regardless of the principal's subsequent incapacity or disability. Termination occurs when a principal dies; the agent declares they are unwilling or unable to perform their duties, or the principal revokes POA in writing
- Springing POA: Springing POA gives a power of attorney only when specific criteria are met-like if the principal is incapacitated. You can also make a durable POA that springs certain powers.
- Limited POA: When a principal anticipates that they cannot manage their affairs for a set period, they may use a limited POA. They can then reassert their control. An agent with a limited POA has limited control over the principal's finances, such as responsibilities defined within certain areas and limited time
Legal Requirements for Pennsylvania Powers of Attorney
A Pennsylvania Power of Attorney is governed by chapter 56 of Title 20 of the Pennsylvania Consolidated Statutes (20 PA CSA §5601-5614). Legal requirements for a valid POA are:
Mental capacity
In Pennsylvania, a person granting authority must have the mental capacity to write a POA. However, neither state statutes nor higher courts stipulate what mental capacity is necessary. But Pennsylvania's "orphans' courts" require that the principal understand:
- What kind of authority does the person grants
- Assets subject to the POA
- The information and warnings are on the first page of the POA
Pennsylvania also requires specific notices in the POA, which are automatically included in a Pennsylvania POA template.
A notice to the POA parties
All POA letters in Pennsylvania must include this clarifying document. This is a warning to designated agents to exercise probity when fulfilling their duties
Acknowledgment
Pennsylvania requires a standard acknowledgment form for financial POAs. By signing this document, the agent agrees to follow the POA, including acting as per the principal's wishes. This notice is also kept within the POA scope. It begins in capital letters, and you sign it twice (at the beginning and the end).
POA witnessing and notarizing
Pennsylvania witnesses must be over 18. It cannot be a POA agent or a notary public. Pennsylvania requires the following to finalize a POA:
- Two witnesses who are not named agents
- Publicly signed before a notary
How to Write a Power of Attorney in Pennsylvania
Pennsylvania is among the few states that propose how a power of attorney should be drafted. But no statutory forms are provided. Follow the below steps when drafting a POA document in Pennsylvania:
Start your POA draft
You can create your POA without an attorney by using forms or templates. This helps you create an estate plan that meets your specific goals and is valid in Pennsylvania.
An attorney can also help you draft a POA, but it costs more. Depending on where you live, a lawyer might charge you between $200 and $500 to prepare a Power of Attorney.
A notary public and two witnesses should witness the POA signing
In order for it to be valid, two witnesses over 18 who may not assist you must sign your POA. They cannot be named as agents on the POA, and they cannot be notaries.
Keep the original POA safe
Keep the original POA in a safe place your family or the attorney-in-fact can easily access.
Make sure your agent has a copy
Your agent should also receive a copy of the power of attorney so they know what it contains.
The Land Records Office should receive a copy
File a copy of the POA with any county where you own real estate in the event you granted your agent "real estate transactions" as one of its powers. If your agent needs to sell, mortgage, or transfer real estate, the land records office will recognize their authority.
Provide a copy to financial institutions
Some banks are picky about POAs, so your agent might find this step helpful if he ever needs one.
The Agent's Duties in a Pennsylvania POA
An agent must act according to the principal's reasonable expectations to the degree known by the agent. He must act in the principal's best interests, in good faith, and within the authority granted in the POA. Other duties include:
- Act dutifully for the principal's advantage
- Keep the agent's assets separate from the principal's assets
- Avoid a conflict of interest that weakens the agent's acting ability
- Act with appropriate care
- Keep a record of all receipts, payouts, and transactions made on behalf of the principal
- Cooperate with a person who can make healthcare decisions for the principal
- Consider all relevant factors when preserving the principal's estate plan
There are now several actions agents cannot take unless expressly granted authority in a power of attorney. Those include:
- Changing beneficiary designations
- Making gifts
- Creating or terminating trusts
- Changing survivorship rights, delegating POA authority
If you need to create, review, or revise your POA quickly, our templates can help you out. A power of attorney is valid in all Pennsylvania counties. LawDistrict lets you edit any Pennsylvania Power of Attorney form to suit your needs.
Start your Pennsylvania POA now
FAQ about Pennsylvania Power of Attorney
-
When does a Power of Attorney take effect in PA?
A Pennsylvania POA takes effect immediately unless it explicitly states otherwise.
-
How to get a Pennsylvania POA for elderly parents?
Ideally, your elderly parents should obtain a power of attorney and choose a representative or attorney-in-fact. You can help your elderly parents understand the value of POA by explaining its purpose.
A Power of Attorney is a key estate planning document that permits another person to act and decide for you. You will need such authority if you lose mental capacity or cannot act independently. All states use POAs, but laws and types can vary, even in Pennsylvania.
The POA executor (the "principal") appoints another individual (the "agent") to make financial or health care decisions on the principal's behalf. POAs only last as long as you live, so your agent can no longer decide on your property, possessions, or other matters if you pass away. If you die, your executor will open a probate estate for you.
POAs aren't only for the elderly, the infirm, or the incapacitated. The POA gives you and your spouse complete access to each other's financial affairs, including work-related documents like 401Ks.
If you become disabled temporarily or permanently, POAs can provide for your business succession. A POA can also be used when you plan to travel overseas and need someone in the United States to help your children or other dependents access your bank accounts.
Let's explore how this document works in the state of Pennsylvania further below.
Common POA Types in Pennsylvania
Often, a Pennsylvania power of attorney (POA) can make all the difference between a family, close friends, and the principal's financial future. Considering this, Pennsylvania revised its legislation (found in Title 20 of the PA General Assembly) to ensure powers of attorney are regulated fairly and clearly.
A principal can grant the following types of powers of attorney under PA law:
- General POA: An agent with a general POA controls all financial affairs, but the POA expires when the principal becomes incapacitated. Agents control bank accounts, investment portfolios, real estate, and business interests.
- Durable POA: An agent can exercise durable powers regardless of the principal's subsequent incapacity or disability. Termination occurs when a principal dies; the agent declares they are unwilling or unable to perform their duties, or the principal revokes POA in writing
- Springing POA: Springing POA gives a power of attorney only when specific criteria are met-like if the principal is incapacitated. You can also make a durable POA that springs certain powers.
- Limited POA: When a principal anticipates that they cannot manage their affairs for a set period, they may use a limited POA. They can then reassert their control. An agent with a limited POA has limited control over the principal's finances, such as responsibilities defined within certain areas and limited time
Legal Requirements for Pennsylvania Powers of Attorney
A Pennsylvania Power of Attorney is governed by chapter 56 of Title 20 of the Pennsylvania Consolidated Statutes (20 PA CSA §5601-5614). Legal requirements for a valid POA are:
Mental capacity
In Pennsylvania, a person granting authority must have the mental capacity to write a POA. However, neither state statutes nor higher courts stipulate what mental capacity is necessary. But Pennsylvania's "orphans' courts" require that the principal understand:
- What kind of authority does the person grants
- Assets subject to the POA
- The information and warnings are on the first page of the POA
Pennsylvania also requires specific notices in the POA, which are automatically included in a Pennsylvania POA template.
A notice to the POA parties
All POA letters in Pennsylvania must include this clarifying document. This is a warning to designated agents to exercise probity when fulfilling their duties
Acknowledgment
Pennsylvania requires a standard acknowledgment form for financial POAs. By signing this document, the agent agrees to follow the POA, including acting as per the principal's wishes. This notice is also kept within the POA scope. It begins in capital letters, and you sign it twice (at the beginning and the end).
POA witnessing and notarizing
Pennsylvania witnesses must be over 18. It cannot be a POA agent or a notary public. Pennsylvania requires the following to finalize a POA:
- Two witnesses who are not named agents
- Publicly signed before a notary
How to Write a Power of Attorney in Pennsylvania
Pennsylvania is among the few states that propose how a power of attorney should be drafted. But no statutory forms are provided. Follow the below steps when drafting a POA document in Pennsylvania:
Start your POA draft
You can create your POA without an attorney by using forms or templates. This helps you create an estate plan that meets your specific goals and is valid in Pennsylvania.
An attorney can also help you draft a POA, but it costs more. Depending on where you live, a lawyer might charge you between $200 and $500 to prepare a Power of Attorney.
A notary public and two witnesses should witness the POA signing
In order for it to be valid, two witnesses over 18 who may not assist you must sign your POA. They cannot be named as agents on the POA, and they cannot be notaries.
Keep the original POA safe
Keep the original POA in a safe place your family or the attorney-in-fact can easily access.
Make sure your agent has a copy
Your agent should also receive a copy of the power of attorney so they know what it contains.
The Land Records Office should receive a copy
File a copy of the POA with any county where you own real estate in the event you granted your agent "real estate transactions" as one of its powers. If your agent needs to sell, mortgage, or transfer real estate, the land records office will recognize their authority.
Provide a copy to financial institutions
Some banks are picky about POAs, so your agent might find this step helpful if he ever needs one.
The Agent's Duties in a Pennsylvania POA
An agent must act according to the principal's reasonable expectations to the degree known by the agent. He must act in the principal's best interests, in good faith, and within the authority granted in the POA. Other duties include:
- Act dutifully for the principal's advantage
- Keep the agent's assets separate from the principal's assets
- Avoid a conflict of interest that weakens the agent's acting ability
- Act with appropriate care
- Keep a record of all receipts, payouts, and transactions made on behalf of the principal
- Cooperate with a person who can make healthcare decisions for the principal
- Consider all relevant factors when preserving the principal's estate plan
There are now several actions agents cannot take unless expressly granted authority in a power of attorney. Those include:
- Changing beneficiary designations
- Making gifts
- Creating or terminating trusts
- Changing survivorship rights, delegating POA authority
If you need to create, review, or revise your POA quickly, our templates can help you out. A power of attorney is valid in all Pennsylvania counties. LawDistrict lets you edit any Pennsylvania Power of Attorney form to suit your needs.
Start your Pennsylvania POA now
FAQ about Pennsylvania Power of Attorney
-
When does a Power of Attorney take effect in PA?
A Pennsylvania POA takes effect immediately unless it explicitly states otherwise.
-
How to get a Pennsylvania POA for elderly parents?
Ideally, your elderly parents should obtain a power of attorney and choose a representative or attorney-in-fact. You can help your elderly parents understand the value of POA by explaining its purpose.
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