Power of attorney (POA) is a legal document that grants one person (the agent) the authority to act on behalf of another (the principal). As a cornerstone of estate planning, a power of attorney ensures that someone you trust can make important decisions and manage your affairs when you are unable to do so yourself. Most individuals should include a power of attorney in their estate plan. In Pennsylvania, there are several distinct types of power of attorney, each tailored to specific needs. Below, our Mechanicsburg POA attorney provides an overview of the various types of power of attorney available under Pennsylvania law.
General Power of Attorney
A general POA is the broadest and most comprehensive type of power of attorney available in Pennsylvania. This type of POA grants the agent wide-ranging authority over the principal’s affairs, including managing finances, making legal decisions, and handling business matters. A general POA is typically effective immediately upon signing, but it will terminate if the principal becomes incapacitated—unless it is made durable. A general POA is often used when someone needs to delegate a broad range of responsibilities to another person.
Limited (Special) Power of Attorney
Also known as a special POA, a limited power of attorney is more focused and gives the agent authority to act on the principal’s behalf for a specific task or within a defined timeframe. For example, a limited POA might be used to allow someone to sell a particular property, handle a business transaction, or manage a bank account for a short period. Once the task is completed or the time frame expires, the POA automatically ends.
Durable Power of Attorney
A durable POA is particularly important for estate planning because it remains in effect even if the principal becomes mentally or physically incapacitated. In Pennsylvania, unless stated otherwise, POA documents are presumed to be durable, but it is important that your estate planning documents explicitly clarify whether or not a POA is durable. A durable POA ensures that the designated agent can make decisions on the principal’s behalf even during periods of incapacity, offering peace of mind for long-term planning.
Springing Power of Attorney
A springing POA is a conditional document that “springs” into action only when a specific event or condition occurs, such as the principal’s incapacity. Until that event occurs, the agent cannot exercise any authority. For example, the principal can specify that the POA becomes effective only upon a medical determination of incapacity. To activate a springing POA, there must be clear language in the document as well as medical or legal confirmation of the specified event. This type of POA provides an additional layer of control over when and how the agent can act.
Healthcare (or Medical) Power of Attorney
A healthcare POA, also known as a healthcare proxy, gives an agent the authority to make medical decisions on behalf of the principal when they are unable to do so themselves. This type of POA is vital in situations where the principal may be unconscious or otherwise incapacitated and unable to communicate their medical preferences. Often, a healthcare POA is accompanied by a living will, which outlines the principal’s wishes for end-of-life care, ensuring that healthcare decisions are made in accordance with their values and desires.
Speak to Our Mechanicsburg, PA Power of Attorney Lawyer Today
At Keystone Elder Law P.C., our Mechanicsburg estate planning attorneys have extensive experience in handling all aspects of power of attorney and estate planning. If you have any questions about the various types of power of attorney or need assistance in selecting the right one for your situation, we are here to help. Contact us today for a confidential consultation. From our office in Mechanicsburg, we serve clients throughout the region, providing personalized legal support tailored to your needs.