A power of attorney is someone you can personally appoint to make important choices, like financial and medical decisions, on your behalf in the event you are unable to do so. There are several types of powers of attorney in Pennsylvania, so understanding these options can help you ensure that you make the best decision for your needs. The purpose of a power of attorney is to ensure that someone you can trust has the ability to act legally on your behalf, even when you cannot make a decision yourself. Read on and reach out to our skilled Butler County powers of attorney lawyers to learn more.
What Is a Power of Attorney in Pennsylvania?
A power of attorney is a type of legal document that allows an individual, known as the “agent,” to act on behalf of another person, known as the “principal,” under specific circumstances. Generally, these powers are used to ensure that in the event the principal is unable to communicate their wishes regarding their finances, health, and legal affairs, the agent has the legal authority to make those choices for them. This is commonly utilized in estate planning documents.
In Pennsylvania, powers of attorney are governed in accordance with state specific laws that require careful execution, signing requirements, and adequate legal notice. These rules help ensure that the document is valid and the agen understands what is required of them in accordance with PA law.
Key Responsibilities of a Power of Attorney
- Managing bank accounts, paying bills, and handling investments
- Filing taxes
- Purchasing, selling, and managing real estate
- Making medical decisions if authorized
- Hiring caregivers and arranging long-term care
What Is a Financial Power of Attorney?
One of the most important documents you can have in your estate plan is a financial power of attorney. Unfortunately, the documents our firm usually sees are not strong enough.
Keep in mind that while it is the most important document you can have, it can also be the riskiest if it is put into the hands of someone who cannot be trusted or held responsible. In Pennsylvania, once you sign the document, your agent has the ability to step into your role and make decisions without informing you what he or she is doing. There is more to the discussion than just naming an agent and signing a power of attorney. You have to be very clear as to what powers you are giving them.
Important Powers to Define
- If your agent can make financial gifts (imperative for Medicaid planning)
- The authority to purchase or sell property
- The ability to access and control bank accounts
- When authority begins
Durable vs. Springing Financial Power of Attorney
Financial powers of attorney are often referred to as durable, which means that if you become incapacitated, it is still effective. Powers of attorney can be effective immediately, or they can become effective sometime in the future, referred to as a springing power of attorney.
- Durable POA: Remains valid after incapacitation
- Springing POA: Activates only after a specific event, like a medical professional deeming you medically incapacitated
What Is A Health Care Power Of Attorney?
Health care directives, which are generally referred to as a health care power of attorney, health care proxy, or healthcare agent, can be split into two parts in Pennsylvania. The first part is known as a health care power of attorney, which allows an individual to make medical decisions on your behalf in the event that you lose your mental capacity.
Unlike a financial (durable) POA, your agent cannot make decisions for you unless you have lost the power to speak or communicate. After you have lost the ability to speak or communicate, your agent can then make those decisions for you.
Choosing the Right Healthcare Agent
- Consider someone who understands your preferences for medical care
- Ensure they can operate under high-pressure situations
- Consider naming an alternate
- Avoid naming multiple decision makers with equal authority to prevent disputes
Why Order of Authority Matters
It is expected that families want multiple people to be able to make the decision, but when it comes to the power of attorney, having a clear pecking order does have its advantages should there be a dispute that would surface in the future. As such, it’s highly recommended to appoint one individual for this role and name an alternate in the event your original option is unable to assume the role.
Other Types of Powers of Attorney in Pennsylvania
In addition to financial and healthcare powers of attorney, there are a number of other types recognized in Pennsylvania. Understanding these options can help ensure you choose the best path for your specific needs and circumstances.
Common POA Types
- General Power of Attorney: Broad authority over financial and legal decisions
- Limited Power of Attorney: Authority restricted to a specific task or timeframe
- Springing Power of Attorney: Becomes effective only after an event triggers it
- Durable Power of Attorney: Remains in effect, even after incapacitation
Each type of power of attorney in Pennsylvania is designed to give specific legal authority, rather than broad, one-size-fits-all power.
Contact Our Experienced Pennsylvania Estate Firm
Whether you are dealing with matters involving estate planning, estate administration, or elder law, you need a legal team you can feel confident will represent your best interests every step of the way. We are that legal team. Contact Heritage Elder Law & Estate Planning today so we can get started.
