A power of attorney is one of the most useful documents in any estate plan, and one of the easiest to get wrong in Pennsylvania. It lets someone you trust act for you if you cannot act for yourself, from paying bills to managing property. But Pennsylvania tightened its execution rules after a major reform in 2014, and a power of attorney that does not follow them may not be honored by banks or courts. This guide explains what a valid Pennsylvania power of attorney requires today.
What a power of attorney does
A power of attorney (POA) is a written document in which you (the "principal") authorize another person (your "agent," sometimes called attorney-in-fact) to act on your behalf. A durable power of attorney is the key type for estate planning: it stays in effect even if you later become incapacitated, which is exactly when you need it most. In Pennsylvania, a power of attorney is durable unless the document says otherwise.1
Two kinds of authority
- Financial power of attorney (20 Pa.C.S. Chapter 56): authority over money, property, and legal matters.
- Health care power of attorney (20 Pa.C.S. Chapter 54): authority to make medical decisions if you cannot.
They are separate documents. Most complete plans include both.
Pennsylvania's execution requirements
This is where Pennsylvania is strict, and where the 2014 reforms (Act 95, effective for powers of attorney executed on or after January 1, 2015) changed the rules. For a financial power of attorney to be valid today, it must be:1
- In writing and signed and dated by the principal (or by someone signing at the principal's direction in the principal's presence).
- Acknowledged before a notary public or other officer authorized to take acknowledgments.
- Witnessed by two individuals, each 18 or older.
There are rules about who may serve: the notary cannot be the agent, and a witness cannot be the agent, the notary, or the person who signed the document on the principal's behalf.2 In short, keep your agent well clear of the notarization and witnessing.
Two extra documents Pennsylvania requires. A valid Pennsylvania financial power of attorney must include a specific statutory notice at the beginning, signed by the principal, warning you about the powers you are granting.3 And your agent must sign an acknowledgment accepting their legal duties before acting under the power. Leaving out the notice or the agent acknowledgment is one of the most common ways a Pennsylvania POA fails.
Powers that need to be spelled out
Some especially significant powers do not exist unless the document expressly grants them. Under 20 Pa.C.S. 5601.4, authority to do things like make gifts, create or change beneficiary designations, create or amend a trust, or change rights of survivorship must be specifically stated in the power of attorney; a general grant is not enough.4 If you want your agent to be able to do these things, say so explicitly.
The health care power of attorney
A health care power of attorney lets you name an agent to make medical decisions if you become unable to communicate them yourself. It is governed by Chapter 54 and is usually paired with a living will as part of a combined advance directive. Because the rules and witnessing differ from the financial POA, we cover them separately in our guide to the Pennsylvania advance health care directive.
Creating, changing, and revoking a POA
You can revoke a power of attorney at any time while you have capacity. The clean way is to sign a written revocation, notify your agent in writing, and tell any bank or institution that has a copy on file. Destroying the original and any copies helps prevent confusion. A power of attorney also ends automatically at your death, at which point your executor (not your agent) takes over under your will. Choosing a trustworthy agent matters enormously, because a financial POA hands real control over your money to another person.
How it fits your estate plan
A power of attorney protects you while you are alive; a will directs your property after you die. They do different jobs, and a complete plan has both. Once your powers of attorney are in place, put the rest of your wishes on paper: read our step-by-step guide on how to write a will in Pennsylvania, or start now with our will form. For the document itself, Pennsylvania's strict execution rules make a POA one area where using a lawyer or a carefully drafted statutory form is well worth it.
Sources
- 120 Pa.C.S. Section 5601, Powers of attorney (general provisions and execution), Justia (law.justia.com)
- 220 Pa.C.S. Section 5601 (witness and notary restrictions), FindLaw (codes.findlaw.com)
- 3Big Changes to Pennsylvania Law on Powers of Attorney (Act 95 notice and acknowledgment), Marshall, Parker & Weber (paelderlaw.com)
- 420 Pa.C.S. Section 5601.4, Authority requiring specific and general grant, Justia (law.justia.com)
Frequently Asked Questions
How do you make a power of attorney valid in Pennsylvania? For documents executed on or after January 1, 2015, the principal must sign and date it, have the signature acknowledged before a notary, and have it witnessed by two people aged 18 or older. It must also include the required statutory notice, and the agent must sign an acknowledgment before acting.
Can my agent be one of the witnesses or the notary? No. The agent cannot serve as the notary or as a witness, and the notary cannot be the agent. Keep the agent well clear of the notarization and witnessing.
Is a Pennsylvania power of attorney durable by default? Yes. A Pennsylvania power of attorney is durable, meaning it survives your incapacity, unless the document expressly states otherwise.
How do I revoke a power of attorney in Pennsylvania? While you have capacity, sign a written revocation, notify your agent and any institution holding a copy, and destroy the originals and copies. A power of attorney also ends automatically at your death.
About the author
Max Kuch
Max Kuch writes about estate planning, wills and inheritance for Pennsylvania Will Template. He gathers the rules from the Pennsylvania statutes and the leading public data, then explains them in plain, accessible language so anyone can put their wishes in writing.