Estate Planning
Powers of Attorney: The Document Nobody Thinks About Until It's Too Late
Why the paperwork that matters most is often the paperwork that gets put off the longest.
When people think about estate planning, they think about a will. But a will only takes effect after death. A power of attorney covers the years before that, when you are alive but unable to handle your own affairs, and for many families that is the harder stretch.
What a Power of Attorney Does
A power of attorney names someone you trust, your agent, to act for you. There are two kinds most people need:
- A financial power of attorney lets your agent pay bills, manage bank accounts, handle real estate, and deal with taxes.
- A health care power of attorney lets your agent make medical decisions when you cannot, usually alongside a living will stating your own wishes.
They are separate documents, and the right person for one is not always the right person for the other.
Why It Has to Be Done Early
You can only sign a power of attorney while you are able to understand it. After a stroke, an accident, or a dementia diagnosis that has progressed, it is often too late. At that point, family members who need to pay the mortgage or talk to doctors may have to ask the court to appoint a guardian. Guardianship takes time, costs money, involves ongoing court oversight, and puts private matters on the public record. A power of attorney signed years earlier avoids nearly all of it.
Pennsylvania Has Specific Signing Rules
A Pennsylvania financial power of attorney has to follow formal requirements to be valid, including a signed notice at the beginning of the document, two witnesses, and a notary. Your agent also signs an acknowledgment of their duties before acting. A form downloaded online or drafted in another state may not meet these requirements, and a bank is within its rights to question one that does not.
Choosing Your Agent
- Pick someone trustworthy and organized, not just the oldest child.
- Name a backup in case your first choice cannot serve.
- Talk with them first, so they know what you want and where your records are.
When to Review Yours
Look again after a marriage or divorce, if your agent moves away, becomes ill, or passes away, or if your finances change significantly. A document that named the right person ten years ago may not today.
This article is general information about Pennsylvania law, not legal advice for your situation. Every estate and family is different. Reading it does not create an attorney-client relationship with D'Amico Law, PC.
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