Power of Attorney Basics for Families

If you're caring for aging parents, planning for your own future, or managing family affairs, you've probably heard the term "power of attorney" (POA). But what exactly is it, and when do you need one? I'm Christian Nichols, a licensed Pennsylvania notary serving Western PA, and I work with families almost daily to execute powers of attorney. Let me walk you through the basics in plain language.

A power of attorney is one of the most important legal documents you or a loved one will ever sign. It's also one that many people put off until it's too late. Understanding the basics can help you make informed decisions and avoid crisis situations down the road.

What Is a Power of Attorney?

A power of attorney is a legal document that allows one person (the "principal") to give another person (the "agent" or "attorney-in-fact") the authority to act on their behalf. Despite the name, the agent doesn't have to be an attorney - it can be a spouse, adult child, trusted friend, or professional.

The agent's powers can be broad (handling all financial and legal matters) or limited (only specific tasks like selling a house or managing investments). The key is that the principal decides exactly what authority to grant.

Important: The principal must be mentally competent when signing a POA. Once someone loses mental capacity due to dementia, stroke, or other conditions, it's too late to create a valid power of attorney. This is why planning ahead is crucial.

Main Types of Power of Attorney in Pennsylvania

1. General Power of Attorney

Grants broad authority to handle financial and legal matters including banking, real estate, taxes, and business operations. This is effective immediately upon signing but automatically ends if the principal becomes incapacitated (unless it's also "durable").

2. Durable Power of Attorney

The most common type for estate planning. "Durable" means the POA remains in effect even if the principal becomes mentally incapacitated. Pennsylvania law presumes all POAs are durable unless specifically stated otherwise. This is what most families need for long-term planning.

3. Limited (Special) Power of Attorney

Grants authority for specific tasks only - such as selling a particular property, handling a single business transaction, or managing one bank account. This expires once the task is completed or on a specified date.

4. Springing Power of Attorney

Only becomes effective when a specific event occurs, usually when the principal is declared incapacitated by a doctor. While this sounds appealing, it can create practical problems because banks and institutions may require proof of incapacity before accepting the POA.

5. Healthcare Power of Attorney

Specifically for medical decisions, separate from financial POA. This authorizes someone to make healthcare choices if you cannot. I cover this in detail in my article about Healthcare POA vs. Financial POA.

When Do You Need a Power of Attorney?

Here are the most common situations where families need a POA:

• Aging parents - Even if they're currently healthy, having POA in place prevents crisis management if they suddenly become ill or develop dementia
• Extended travel or military deployment - Someone needs authority to handle affairs while you're away
• Serious illness or upcoming surgery - Plan ahead in case recovery is longer than expected
• Managing property for someone else - Selling a parent's house, managing rentals, or handling an estate
• Business operations - Authorizing someone to act on your behalf in business matters
• Elder care planning - Before nursing home placement or when transitioning to assisted living
• Peace of mind - Even if you're young and healthy, accidents happen

The best time to create a power of attorney is when you don't urgently need one. Waiting until there's a crisis often means it's too late.

What Powers Can You Grant?

Pennsylvania's POA statute lists specific powers you can grant. Common ones include:

• Real estate transactions (buying, selling, managing property)
• Banking and financial accounts
• Stock and bond transactions
• Business operations
• Insurance and annuities
• Estate planning (making gifts, creating trusts)
• Claims and litigation
• Tax matters
• Government benefits (Social Security, Medicare, veterans benefits)
• Retirement accounts

You can grant all of these powers or only select specific ones. The document should clearly state which powers you're granting.

Note: Some powers are considered "hot powers" and require specific language and initials in Pennsylvania POAs. These include making gifts, changing beneficiaries, and creating or amending trusts.

Choosing the Right Agent

Selecting your agent is the most important decision you'll make. This person will have significant authority over your finances and affairs. Consider these factors:

• Trustworthiness - This is non-negotiable. Your agent has a fiduciary duty to act in your best interest, not their own
• Financial responsibility - Choose someone who manages their own finances well
• Availability - They should be local or able to travel if needed
• Willingness - Don't assume; ask if they're willing to serve
• Age and health - Consider whether they'll outlive you or remain capable
• Family dynamics - Be aware of potential conflicts with other family members

Many people name a spouse as primary agent, with an adult child or trusted friend as successor agent in case the first agent can't serve.

Red flag: Be cautious if someone is pressuring you to name them as your agent. This should be your decision made freely.

Pennsylvania POA Requirements and Notarization

For a power of attorney to be valid in Pennsylvania, it must meet specific legal requirements:

• Written document - Verbal agreements don't count
• Dated - Must show when it was signed
• Signed by the principal - Or by someone at the principal's direction if they cannot sign
• Notarized or witnessed - Must be acknowledged before a notary public OR signed in the presence of two witnesses
• Agent acknowledgment - The agent must sign an acknowledgment accepting their duties (can be done later, not necessarily at signing)

While Pennsylvania allows either notarization OR two witnesses, I strongly recommend notarization. Here's why:

• Banks and financial institutions are more likely to accept notarized POAs
• Some states require notarization for POAs to be recognized
• Notarization provides stronger evidence of proper execution
• Real estate transactions typically require notarization

When I notarize a POA, I verify the principal's identity, ensure they understand what they're signing, confirm they're acting willingly, and witness their signature. This creates a clear record that the POA was properly executed.

When Does a POA End?

A power of attorney automatically terminates when:

• The principal dies
• The principal revokes it (if mentally competent)
• The specified expiration date arrives (if one was set)
• The purpose is accomplished (for limited POAs)
• A court appoints a guardian or conservator for the principal

Note: A durable POA does NOT end when the principal becomes incapacitated - that's the whole point of making it durable.

Common Misconceptions About Power of Attorney

Myth: "My spouse automatically has POA."
False. Marriage doesn't grant automatic POA rights. You must execute a specific document.

Myth: "I can create a POA for my parent who has dementia."
No. The principal must be mentally competent to sign. If they already have dementia, you'll likely need guardianship through the courts.

Myth: "Once I sign a POA, I lose control."
False. You retain full control and can revoke the POA anytime (if you're competent). The agent has authority, but you're still in charge.

Myth: "Any POA will work anywhere."
Not always. Some states and institutions have specific requirements. Banks may want you to use their own POA form.

Myth: "A POA lets my agent make healthcare decisions."
Not unless it's specifically a healthcare POA. Financial POAs don't cover medical decisions - you need a separate healthcare POA.

Getting Help With Power of Attorney Documents

While I can notarize your power of attorney, I cannot provide legal advice or help you prepare the document. Pennsylvania law is clear: notaries are not attorneys (unless they're separately licensed as such).

For creating a POA, you have several options:

• Attorney - Best option for complex situations, large estates, or "hot powers"
• Online legal services - Services like LegalZoom or Rocket Lawyer for straightforward situations
• Elder law attorney - Specialized help for aging parents and long-term care planning
• Estate planning attorney - POA as part of comprehensive estate plan

Once your POA is properly prepared, I can come to your home, office, nursing home, or hospital to notarize it. I serve all of Western Pennsylvania including Butler, Lawrence, Mercer, Crawford, Erie, Allegheny, Beaver, and Venango Counties.

Mobile Notary for POA: What to Expect

When you schedule me to notarize a power of attorney, here's what happens:

1. You prepare your POA document (via attorney or legal service)
2. I come to your location at a scheduled time
3. I verify the principal's identity with government-issued photo ID
4. I confirm the principal understands the document and is signing willingly
5. I watch the principal sign the document
6. I complete the notarial certificate and apply my official seal
7. I record the notarization in my journal
8. You receive your properly executed POA, ready to use

The process typically takes 10-15 minutes. I'm patient, professional, and happy to answer questions about the notarization process (though I can't advise on the document's content).