Understanding Powers of Attorney in Pennsylvania: What You Need to Know

A power of attorney is one of the most important documents in your estate plan — and one of the most misunderstood. It allows you to designate a trusted person to make financial or healthcare decisions on your behalf if you become unable to do so yourself. Without one, your family may need to petition the court for guardianship, a process that is time-consuming, expensive, and emotionally difficult.

In Pennsylvania, powers of attorney are governed by the Uniform Power of Attorney Act, codified at 20 Pa.C.S. § 5601 et seq. This statute was significantly updated in 2015 and includes specific requirements that must be followed for the document to be valid and effective.

Financial Power of Attorney

A financial power of attorney authorizes your agent to manage your financial affairs. This can include paying bills, managing bank accounts, filing tax returns, buying or selling real estate, managing investments, and handling insurance claims. The scope of authority can be broad or limited depending on your needs.

Pennsylvania law provides a list of specific powers that can be granted to an agent under 20 Pa.C.S. § 5602, including powers related to real property, tangible personal property, financial institutions, business operations, insurance, estates, trusts, and government benefits. When drafting a power of attorney, it is important to carefully consider which powers to include and whether any limitations or special instructions should be added.

Durable vs. Non-Durable

A "durable" power of attorney remains effective even if you become incapacitated — which is precisely when you need it most. In Pennsylvania, a power of attorney is presumed to be durable unless the document specifically states otherwise. A non-durable power of attorney terminates when the principal becomes incapacitated, making it less useful for estate planning purposes.

Springing Powers

Some clients prefer a "springing" power of attorney, which only takes effect upon the occurrence of a specific event, typically the principal's incapacity. While this approach provides an additional safeguard against premature use, it can create practical problems. Financial institutions may be reluctant to honor a springing power without clear proof of incapacity, and determining incapacity can involve delays and disputes. For most clients, we recommend an immediately effective durable power of attorney with appropriate safeguards built into the document.

Healthcare Power of Attorney

A healthcare power of attorney — also called a healthcare proxy or healthcare agent designation — authorizes someone to make medical decisions on your behalf when you are unable to communicate your own wishes. This is separate from a living will, which documents specific treatment preferences, and from a financial power of attorney.

Under Pennsylvania's Advance Directive for Health Care Act (20 Pa.C.S. § 5422), you can designate a healthcare agent and a successor agent, specify the types of treatment you do or do not want, provide guidance for end-of-life decisions, and address organ donation and other post-death matters.

Your healthcare agent has authority to consent to or refuse medical treatment, access your medical records, select healthcare providers and facilities, and make decisions about pain management and comfort care. It is important to choose someone you trust completely and to have an honest conversation with them about your values and preferences.

Common Mistakes to Avoid

Over the years, we have seen several recurring issues with powers of attorney that cause problems for families. First, using generic forms downloaded from the internet that may not comply with Pennsylvania's specific statutory requirements or that grant powers the client did not intend. Second, failing to name successor agents — if your primary agent is unable or unwilling to serve, your power of attorney becomes useless without a backup. Third, not updating the document after major life changes such as divorce, the death of a named agent, or a change in your financial situation. Fourth, failing to discuss the document with your named agent, who may not understand their responsibilities or your wishes.

When Third Parties Refuse to Honor a Power of Attorney

One of the most frustrating situations families face is when a bank, financial institution, or government agency refuses to honor a valid power of attorney. Pennsylvania law addresses this issue directly. Under 20 Pa.C.S. § 5608, a third party who unreasonably refuses to accept a properly executed power of attorney may be subject to a court order compelling acceptance and an award of attorney fees. Knowing your rights in this situation is important, and having an attorney-drafted power of attorney that complies with all statutory requirements significantly reduces the likelihood of refusal.

Should You Have Both?

Yes. A comprehensive estate plan should include both a durable financial power of attorney and a healthcare power of attorney (along with a living will). These documents work together to ensure that someone you trust can manage your finances and make medical decisions on your behalf if you are unable to do so. Without them, your family faces the prospect of a court-supervised guardianship proceeding — which costs more, takes longer, and removes your ability to choose who manages your affairs.

If you do not have current powers of attorney, or if your existing documents are more than a few years old, contact us at (724) 733-3500 to schedule a review. You can also contact us online.

About the Author

John W. Ament, Esq.

John W. Ament is a partner and co-founder of Ament Law Group, P.C. in Murrysville, PA.