A power of attorney is a written document that gives one person (the “agent”) the authority to act on another’s behalf for any legal, economic or health care issues.

Why do I need a Power of Attorney?

A Power of Attorney is an essential estate planning document to have in place in case you become seriously ill, disabled or injured and unable to manage your affairs.In addition to estate planning, a Power of Attorney is also vital for Medicaid and other public benefit planning.

What is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the “principal”) to designate an individual (the “agent”) or group of individuals (“agents”) to act on your behalf during your lifetime (the document is no longer valid after your death).

There are two main types of Power of Attorneys in Pennsylvania – (1) a Financial Power of Attorney and (2) a Health Care Power of Attorney (sometimes called a Health Care Proxy).There are also “Limited Power of Attorneys” that are used for specific transactions at certain times (for example, a Limited Power of Attorney for a real estate closing).

A Financial and a Health Care Power of Attorney can be“Durable” and/or “Springing.” A Durable Power of Attorney stays in effect if you become incapacitated and unable to handle matters on your own. A Springing Power of Attorney becomes active when the principal becomes incapacitated. In Pennsylvania, Power of Attorneys are presumed to be durable unless stated otherwise.

Financial Power of Attorney

On January 1, 2015, a new law governing Financial Power of Attorneys became effective. Read more here.

Powers Granted:

In Pennsylvania, an agent under a Financial Power of Attorney can perform almost any act the principal could perform regarding the financial management of his or her affairs.Certain powers must be specifically granted to the agent. In order to determine if you should grant one of these “special” powers to your agent, you should contact one of our estate planning attorneys.

Formalities:

A Financial Power of Attorney is required to have certain “Notice” language on the first page that has be in all capital letters. The document has to be signed by the principal and notarized. At least two witnesses have to sign and neither witness can be the agent nor the notary.

Agent

In Pennsylvania, an agent has the following duties:

1. Act in accordance with the principal’s reasonable expectations to the extent actually known by the agent and, otherwise, in the principal’s best interest.

2. Act in good faith; and

3. Act only within the scope of authority granted in the power of attorney.

Therefore, you should choose an individual that you trust to be your agent.

The agent has to sign the Financial Power of Attorney. There is no requirement for a notary or witnesses.

Health Care Power of Attorney

Powers Granted:

An agent under a Health Care Power of Attorney will have access to your medical records and will have broad powers to make health care decisions for you.

Formalities:

A Health Care Power of Attorney needs to be signed by the principal and two witnesses. The two witnesses have to be at least 18 years of age and it is preferable if the witnesses are neither your heirs, your creditors, nor any of your health care providers.

The Health Care Power of Attorney does not have to benotarized, but if the document is both witnessed and notarized, it is more likely to be easily honored by the laws of some other states.

Agent

Similar to your financial agent, you should choose an individual that you trust and that will act in your best interests as your health care agent.

In Pennsylvania, an agent does not have to sign the Health Care Power of Attorney.

An estate planning attorney at Astor Weiss Kaplan & Mandel, LLP can help you determine which type of Power of Attorney document relevant to your situation. If you live in the greater Philadelphia area and need assistance designating an “agent “or “agents” to act on your behalf or simply reviewing your documentation to ensure your wishes are met, contact an estate planning attorney at 215-790-0100

Last will and Testament

A will is essential at every stage of your life. Your last will and testament provides the opportunity to distribute your property, establish care for your children and otherwise express your wishes upon your death. If you die without a will, the state in which you reside determines how your property is distributed and who cares for your children – which may result in unintended consequences. To see how the Commonwealth of Pennsylvania would distribute your property without a will, read more here.

Changing your will

As your life changes, so will your estate plan. You should update your will as your circumstances change. We can assist in drafting valid codicils that address changes in your financial situation, marital status, number of children, philanthropic interests and general lifestyle decisions.