In Pennsylvania, a Power of Attorney (POA) is a critical legal tool that allows one person (the agent) to act on behalf of another (the principal). Under Commonwealth law (20 Pa. C.S. § 5601), individuals can establish either a general or a durable power of attorney—each serving distinct purposes. Understanding the difference is essential, especially when planning for the future. Below, our Mechanicsburg power of attorney lawyer explains the key distinctions between these two types of POA.
What is a General Power of Attorney?
A general power of attorney provides broad authority to the agent to manage the principal’s financial and legal affairs. This may include tasks such as paying bills, managing bank accounts, handling investments, overseeing real estate transactions, and conducting business on the principal’s behalf. In most cases, a general POA becomes effective immediately upon signing—unless the document specifies otherwise.
However, the authority granted under a general POA automatically ends if the principal becomes incapacitated. This limitation makes a general POA more suitable for short-term or specific situations where the principal is expected to remain mentally capable.
What is a Durable Power of Attorney?
A durable power of attorney serves a similar function, granting an agent authority to act on the principal’s behalf—but with one major difference: it remains valid even if the principal becomes incapacitated. To qualify as “durable,” the document must contain specific language stating that the authority continues despite any future incapacity of the principal.
This durability makes it an essential tool for long-term estate planning. A durable POA ensures that a trusted individual can continue to manage financial, legal, or healthcare-related matters if the principal becomes unable to do so themselves.
Key Differences Between General and Durable POA in Pennsylvania
Effect of Incapacity
The most significant difference lies in what happens when the principal becomes incapacitated.
- A general POA terminates if the principal loses mental capacity.
- A durable POA remains in effect during and after incapacity, allowing for uninterrupted decision-making by the agent.
For this reason, a durable POA is a far more effective planning tool for individuals concerned about future health issues or cognitive decline.
Purpose and Common Usage
- A general POA is often used for short-term or temporary purposes—such as during an extended absence, military deployment, or travel abroad. It works best when the principal is fully competent but temporarily unavailable.
- A durable POA, on the other hand, is commonly used for long-term planning, particularly in anticipation of potential future incapacity due to illness, injury, or age-related conditions.
Legal Requirements in Pennsylvania
Both types of POA must meet the legal standards set by Pennsylvania law. However, a durable POA must include clear language stating that the authority remains effective during incapacity. Without this clause, the document is legally treated as a general POA—even if the principal intended otherwise. This single sentence carries significant legal consequences, especially when dealing with long-term health conditions.
Contact Our Pennsylvania Estate Planning Attorney Today
At Keystone Elder Law P.C., we understand how important it is to put the right legal protections in place—both for today and for the future. Our Pennsylvania estate planning attorney has the knowledge and experience to guide you through every step of the process. If you have questions about creating or updating a power of attorney, contact us today for a confidential consultation. From our Mechanicsburg office, we proudly serve clients throughout Central Pennsylvania, including in Gettysburg and surrounding communities.