How long is a power of attorney valid in Pennsylvania? Here are a few key points:
- Not Invalid Due to Mere Passage of Time. In Pennsylvania a power of attorney (POA) does not go bad or become invalid just because of the mere passage of time. The document may appear outdated as Pennsylvania law changes and the POA format changes over time, but an old POA can remain valid even after many years.
- Update your POA Periodically. It is a good idea to update your POA document periodically as the law changes since current and up to date POA documents are more likely to be readily accepted by banks, financial institutions, and real estate title companies. That said, an old POA document is normally still valid and should be honored by third parties. There is no set rule, but if your POA is more than 10 years old, this author believes it is certainly due or overdue for an update.
- You Can Revoke Your POA. You can intentionally make your POA no longer valid by revoking it. Signing a new POA
can revoke a prior POA. The author strongly recommends that you consult with an attorney regarding the formalities of revoking your POA if the person you named in the document is currently acting. The person you designated as your POA, known as your “agent” should normally receive written notice that you have revoked your POA, if they are currently using the POA. Otherwise, their actions can potentially continue to be legally binding upon you even after you thought you revoked it. It is good practice to write to any banks and third parties who have honored the POA to let them know that you have revoked it. - POA Stops Upon Death. Your POA is no longer usable by your agent if you die, if your agent knows that you died. Your executor takes over financial matters upon your passing if you have a will. The agent in your POA can be forced to account to your executor and explain how they handled your finances during your lifetime. They may be required to prepare a document with the court known as a “fiduciary account” to set forth what assets existed and how they were used by the POA.
- Void from the Beginning. A POA may not be valid starting from the moment it was signed. The law refers to this as being “void ab initio” or “void from the beginning. This can occur if the execution formalities were not followed, if the document such as an online POA does not comply with Pennsylvania law, or if the person signing the POA lacked the requisite mental capacity to knowingly sign the document.
- Court Removal of Agent. A court can determine that a POA is no longer valid in a few situations. For example, if a court determines that the person acting as POA mishandled finances, the court can remove that agent. If there is no alternate POA named in the document, then the court can appoint a guardian, and in that instance the POA’s authority is generally stopped by the guardianship and the POA is no longer usable.
- Death or Resignation of the POA. If the person named as your POA dies, resigns, or is otherwise unable to act as POA, and there is no back-up set forth in the POA or mechanism for appointment of a successor POA, then the POA ends and is no longer usable. It is a good idea to name a back-up agent or two if you have trustworthy people in your life who are willing to take on the responsibility of serving as your POA when needed.
If you wish to have our office help you with your estate planning documents, including preparation of your will, financial POA, healthcare POA, and possibly a trust if appropriate for your situation, please contact us. You can rely on the lawyers at Gerhard & Gerhard, P.C. to be on your side every step of the way.
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Disclaimer: We recommend that you receive legal advice from an estate attorney so your estate planning documents are prepared properly and in accordance with Pennsylvania law. If you wish to secure our estate planning services, please click here and we would be pleased to assist.
