(3) Act with the care, competence and diligence ordinarily exercised by agents in similar circumstances. (2) Act so as not to create a conflict of interest that impairs the agent’s ability to act impartially in the principal’s best interest. (ii) the principal commingles the funds after the date of the execution of the power of attorney and the agent is the principal’s spouse. (i) the funds were not kept separate as of the date of the execution of the power of attorney or (1.1) Keep the agent’s funds separate from the principal’s funds unless:
(1) Act loyally for the principal’s benefit. In addition, unless specifically modified in the power of attorney, an agent must: These three requirements are that the agent must: (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 interests (2) act in good faith and (3) act only within the scope of authority granted in the power of attorney. Under the new law, there are some agent’s duties that are mandatory, meaning that the principal cannot waive or modify how these duties apply to their agents. The state also requires that an agent sign a document acknowledging that the agent knows and is willing to comply with the responsibilities of being an agent, which are discussed in more detail below.Ĭhanges to the Duties of an Agent – effective immediately One of the required new statements in the Notice exemplifies the potential reach of a power of attorney: “It is possible for a principal to give the agent authority to give away all of the principal’s property during the principal’s life or to substantially change how the principal’s property will be distributed at his or her death.” The Notice is meant to advise principals not to sign a power of attorney unless they understand the document and that it reflects their intent.
It is extremely important for a principal to know that he or she is giving the agent a large amount of control (or potential control) over his or her finances, either right away or at a later time when the principal becomes incapacitated.
For years, the first page of a Pennsylvania power of attorney has been a notice to the principal, which is the legislature’s attempt to make sure that everyone who signs a power of attorney is aware of what a powerful document it is. When it is time to sign your new power of attorney, be sure to bring your state-issued ID with you to show the notary.Īlso on Januthe language of the state-required notice to the principal and acknowledgement of the agent changes. It does not apply to powers of attorney that were executed prior to that date, so if you have a power of attorney that you’ve been using, you may continue to use it. This rule applies only to powers of attorney executed after January 1. And, of course, consult an attorney to discuss your specific situation.Ĭhanges to the Form and Execution of a Power of Attorney – effective January 1, 2015īeginning in January, a power of attorney executed in Pennsylvania must be signed in front of a notary and two adult witnesses. If you’d like to know more, you may want to view the new law in its entirety on the legislature’s website. My intent is to give you an overview and discuss the most significant provisions of the new law. There are too many changes for me to address in this blog. The term used for the person signing the power of attorney is the “principal.” The purpose of a power of attorney is to give another person – your agent – the power to make financial and property transactions for you. Some parts of Act 95 are already in effect other changes will take effect on January 1, 2015. The changes do not affect any power of attorney that is limited to healthcare choices. It modifies Chapter 56 of Title 20 of the Pennsylvania Consolidated Statutes, the statute that governs powers of attorney for financial and property transactions. You may have heard that the law governing Powers of Attorney in Pennsylvania has changed. What Does Pennsylvania’s New Power of Attorney Law Mean?
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