PENNSYLVANIA’S NEW POWER OF ATTORNEY LAW

On July 2, 2014, then Governor Corbett signed into law Act 95 of 2014. This law made significant changes to the statutes that govern Powers of Attorney in Pennsylvania. The majority of the new statutory provisions were effective January 1, 2015.

The first question many people ask is whether Powers of Attorney signed before January 1, 2015 are still valid. Act 95 included a specific provision “grandfathering” all existing Powers of Attorney. However, that is not the end of the discussions. First, an older “grandfathered” POA may be valid but not give your Agent the full authority to act you would like the Agent to possess, particularly with respect to gifting.

Secondly, as institutions like banks and brokerage firms become familiar with POA’s meeting the requirements of Act 95, they are going to become reluctant to accept older POA’s. Eventually you will be successful in convincing them to accept the older POA, but the frustration, aggravation and delay of doing so at a time when you urgently need to accomplish something is not worth saving a few dollars by relying upon an outdated POA.

This type of change in the law is one of the reasons I recommend that you review your Last Will and Testament, Living Will (Advanced Directive) and Power of Attorney at a minimum every five (5) years.

(2/4/2015)