DURABLE FINANCIAL POWER OF ATTORNEY
(Commonwealth of Pennsylvania)
[// GUIDANCE: This template is drafted to comply with 20 Pa. Cons. Stat. §§ 5601–5614 (the “PA POA Statute”) as amended by Act 95 of 2014. It contains all required statutory notices, agent acknowledgments, execution formalities (two witnesses + notarization), and clear grants of authority. Placeholders appear in ALL-CAPS AND BRACKETS. Delete these brackets after customizing.]
STATUTORY NOTICE TO PRINCIPAL
(Required by 20 Pa. Cons. Stat. § 5601(c))
NOTICE
The purpose of this power of attorney is to give the person you designate (your “agent”) broad powers to handle your property, which may include powers to sell or otherwise dispose of any real or personal property without advance notice or approval by you or any other person.
This power of attorney will continue to exist even if you become incapacitated or incompetent.
The powers you give your agent are explained more fully in 20 Pa.C.S. Ch. 56.
If there is anything about this power of attorney you do not understand, you should ask a lawyer to explain it to you.
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Agent’s Acknowledgment (PA-Required)
- Schedule 1 – Specific Powers Granted
- Schedule 2 – Revocation Form (Optional)
1. DOCUMENT HEADER
1.1 Title. Durable Financial Power of Attorney (the “Power of Attorney” or “POA”).
1.2 Principal. [PRINCIPAL LEGAL NAME], residing at [PRINCIPAL ADDRESS], (“Principal”).
1.3 Agent. [PRIMARY AGENT LEGAL NAME], residing at [AGENT ADDRESS], (“Agent”).
a. Successor Agent(s) (if any): [SUCCESSOR AGENT #1]; [SUCCESSOR AGENT #2].
1.4 Effective Date. This POA is effective (check one):
☐ Immediately upon execution
☐ On the occurrence of the following condition (“Springing Date”): [CONDITION—e.g., written certification of incapacity by two licensed physicians].
1.5 Durability. Pursuant to 20 Pa.C.S. § 5604, this POA shall not be affected by the Principal’s subsequent incapacity, disability, or lapse of time.
1.6 Governing Law. This POA and all acts hereunder shall be governed by and construed in accordance with the Pennsylvania POA Statute and other applicable laws of the Commonwealth of Pennsylvania (“PA Law”).
2. DEFINITIONS
For purposes of this POA, capitalized terms have the meanings set forth below. Defined terms used in any Schedule have the same meaning when used elsewhere in this POA.
“Accounting” means a written record of all receipts, disbursements, and transactions conducted by the Agent on behalf of the Principal.
“Assets Under Management” means the aggregate fair-market value of all property, accounts, and contract rights subject to the Agent’s authority at the time the liability or loss giving rise to a claim arises.
“Digital Assets” means electronically stored information, usernames, passwords, and associated rights, including e-mail, social-media, cryptocurrency, and cloud-storage accounts.
“Fiduciary Duties” means the duties imposed on an agent under PA Law, including but not limited to loyalty, care, good faith, acting within scope, record-keeping, and cooperation with health-care agents and guardians.
“Property” means all real, personal, intangible, and mixed property interests of the Principal, whether now owned or later acquired, situated anywhere.
“Revocation Notice” has the meaning given in Section 3.13.
3. OPERATIVE PROVISIONS
3.1 Appointment of Agent. The Principal hereby appoints the Agent (and any Successor Agent) to act for the Principal with respect to the matters and powers described in this POA.
3.2 Scope of Authority. Subject to the limitations in Section 3.4, the Agent may exercise every power that the Principal could exercise with respect to Property, including the powers enumerated on Schedule 1.
3.3 Incorporation of Statutory Powers. To the fullest extent permitted under 20 Pa.C.S. § 5602(a), all statutory powers selected in Schedule 1 are incorporated by reference as though fully set forth herein.
3.4 Special Powers Requiring Separate Grant. Under 20 Pa.C.S. § 5601.3(b), the Agent may NOT do any of the following unless the corresponding box is checked below and the power is also listed on Schedule 1:
☐ Create, amend, revoke, or terminate an inter vivos trust
☐ Make a gift (including charitable gift or waiver of rights)
☐ Create or change rights of survivorship or beneficiary designations
☐ Delegate authority granted under this POA
☐ Exercise fiduciary powers that the Principal has authority to delegate
☐ Disclaim or refuse an interest in property
☐ Access, manage, or dispose of Digital Assets
3.5 Record-Keeping & Accounting. The Agent shall keep contemporaneous records and, upon written request by the Principal, court, or any Successor Agent, shall deliver an Accounting within thirty (30) days.
3.6 Compensation & Reimbursement. The Agent is entitled to (check one):
☐ No compensation; reimbursement of reasonable expenses only.
☐ Reasonable compensation prevailing for agents in [COUNTY].
☐ Fixed compensation of $[AMOUNT] per [TIME PERIOD].
3.7 Co-Agents. If two or more Agents serve concurrently, they shall act (check one):
☐ Jointly (unanimous action required)
☐ Jointly & Severally (each may act independently)
☐ As described: [INSTRUCTIONS].
3.8 Nomination of Guardian. If a court deems a guardian necessary, the Principal nominates [NAME] as guardian of the estate and/or person.
3.9 Third-Party Reliance. Any third party may rely on a duly executed copy of this POA and is indemnified under Section 7.1 for so doing.
3.10 Reliance on Certifications. A written statement by the Agent that the POA is in full force and effect and that the Agent is authorized to act is conclusive proof for the relying party.
3.11 Reliance on Springing Condition. Where effectiveness is springing, a written determination of incapacity by the required physician(s) shall be sufficient proof.
3.12 Ratification. The Principal ratifies and confirms all lawful acts performed by the Agent pursuant to this POA.
3.13 Revocation Procedures. The Principal may revoke this POA by:
a. Executing a written revocation (a “Revocation Notice”) substantially in the form set out in Schedule 2; and
b. Delivering the Revocation Notice to the Agent and any relevant third parties; and
c. Recording the Revocation Notice in the office of the Recorder of Deeds for each PA county where real property subject to this POA is located, if this POA has been previously recorded.
Revocation is effective upon actual receipt by the Agent or as otherwise provided by PA Law.
3.14 Termination. This POA terminates automatically upon the first to occur of: (i) Principal’s death; (ii) complete revocation; (iii) judicial determination of invalidity; or (iv) as otherwise provided by PA Law.
4. REPRESENTATIONS & WARRANTIES
4.1 Principal’s Representations. The Principal represents that:
a. The Principal is at least eighteen (18) years old and of sound mind.
b. No other power of attorney inconsistent with this POA is outstanding, or if any exists it is listed here: [LIST].
c. The Principal owns or controls the Property or has authority to delegate management of such Property.
4.2 Agent’s Representations. By signing the Agent’s Acknowledgment, the Agent represents that:
a. The Agent is eligible to serve and is not disqualified under PA Law.
b. The Agent will accept and comply with the Fiduciary Duties.
c. The Agent has reviewed Schedule 1 and understands all granted powers.
5. COVENANTS & RESTRICTIONS
5.1 Fiduciary Duties. The Agent shall at all times:
a. Act in accordance with the Principal’s reasonable expectations to the extent actually known and, otherwise, in the Principal’s best interest;
b. Act in good faith;
c. Act only within the scope of authority granted by this POA and PA Law.
5.2 Prohibited Acts. Absent express authority in Schedule 1, the Agent may not self-deal, commingle funds, or make any gift to himself/herself.
5.3 Notice of Material Events. The Agent shall notify the Principal (or Successor Agent) within ten (10) days of: (i) a material breach or suspected breach of this POA; (ii) commencement of any proceeding involving the Principal’s Property; or (iii) the Agent’s resignation or inability to serve.
5.4 Periodic Reports. Upon the earlier of (i) each anniversary of the Effective Date or (ii) written request by the Principal, the Agent shall deliver a report summarizing all material transactions.
6. DEFAULT & REMEDIES
6.1 Events of Default. Any of the following constitutes a default by the Agent:
a. Breach of Fiduciary Duties;
b. Acting outside the scope of authority;
c. Failing to provide an Accounting or report when required;
d. Misappropriation or commingling of funds; or
e. Criminal conviction involving dishonesty or breach of trust.
6.2 Cure Period. If the breach is curable, the Agent has fifteen (15) days after written notice to cure, unless the breach involves fraud or irreparable harm.
6.3 Remedies. Upon default and failure to cure, the Principal (or any interested party authorized under PA Law) may:
a. Revoke the Agent’s authority;
b. Compel an accounting;
c. Seek injunctive relief, specific performance, or declaratory judgment;
d. Petition the Orphans’ Court Division of the Court of Common Pleas of [COUNTY] for relief, including surcharge, removal, and damages;
e. Recover reasonable attorneys’ fees and costs.
7. RISK ALLOCATION
7.1 Indemnification. The Agent shall indemnify and hold harmless the Principal, the Principal’s estate, and heirs from any loss, liability, or expense arising from the Agent’s breach of this POA or PA Law.
7.2 Limitation of Liability. Except for losses arising from the Agent’s willful misconduct, bad faith, or gross negligence, the Agent’s aggregate liability shall not exceed the Assets Under Management at the time the claim arose.
7.3 Insurance. [OPTIONAL] The Agent shall maintain Errors & Omissions or fiduciary liability insurance in a minimum amount of $[AMOUNT].
7.4 Force Majeure. The Agent shall not be liable for failure to act when prevented by events beyond the Agent’s reasonable control, provided the Agent uses commercially reasonable efforts to mitigate.
8. DISPUTE RESOLUTION
8.1 Governing Law. This POA is governed by PA Law, without regard to conflict-of-law rules.
8.2 Forum Selection. Subject to mandatory jurisdiction provisions of PA Law, any judicial proceeding shall be brought exclusively in the Orphans’ Court Division of the Court of Common Pleas of [COUNTY], Pennsylvania (“Probate Court”).
8.3 Limited Arbitration. Any dispute other than (i) a request for injunctive or equitable relief, (ii) a petition for accounting, or (iii) a guardianship/estate matter within the Probate Court’s exclusive jurisdiction, may be submitted to confidential arbitration under the then-current rules of [ARBITRATION ORGANIZATION] upon mutual written agreement. Arbitration is elective; either party may decline within 30 days of a written demand.
8.4 Jury-Trial Waiver. To the fullest extent permitted by PA Law, the parties knowingly and voluntarily waive the right to trial by jury in any proceeding arising out of or relating to this POA; provided, however, that if such waiver is deemed unenforceable, the matter shall proceed without such waiver.
8.5 Injunctive Relief Preservation. Nothing in this Section 8 limits the Probate Court’s power to grant injunctive relief to enforce the Agent’s Fiduciary Duties.
9. GENERAL PROVISIONS
9.1 Amendments & Waivers. This POA may be amended only by a writing signed by the Principal and acknowledged in accordance with PA Law. No waiver is effective unless in writing.
9.2 Assignment; Delegation. The Agent may not delegate authority unless expressly authorized by Section 3.4 and Schedule 1, and then only in compliance with 20 Pa.C.S. § 5601.3(f).
9.3 Successors & Assigns. This POA is binding upon and inures to the benefit of the Principal, the Agent, and their respective heirs, personal representatives, successors, and assigns.
9.4 Severability. If any provision is held invalid, the remaining provisions shall continue in full force.
9.5 Entire Agreement. This POA constitutes the entire agreement between the parties regarding the subject matter and supersedes all prior instruments.
9.6 Counterparts; Electronic Signatures. This POA may be executed in counterparts, each of which is deemed an original. Signatures transmitted by electronic means shall be deemed original for all purposes permitted by PA Law, including 73 P.S. § 2260.101 et seq. (UETA).
10. EXECUTION BLOCK
Executed as a sealed instrument on this ___ day of _, 20.
PRINCIPAL
[PRINCIPAL NAME], Principal
WITNESSES
-
Print Name: _____
-
Print Name: _____
(Not a named Agent or beneficiary; at least 18 years old.)
NOTARIZATION
Commonwealth of Pennsylvania )
County of ______ ) ss.:
On ___ / ___ / 20___, before me, the undersigned Notary Public, personally appeared [PRINCIPAL NAME], known to me (or satisfactorily proven) to be the person whose name is subscribed to the foregoing Durable Financial Power of Attorney, and acknowledged that he/she executed the same for the purposes therein contained.
Notary Public Signature: ____
Notary Name (print): ____
My Commission Expires: ______
Notarial Seal:
11. AGENT’S ACKNOWLEDGMENT
(Required by 20 Pa. Cons. Stat. § 5601(d))
I, ______, have read the attached power of attorney and am the person identified as the Agent. When I act as Agent, I shall:
- Act in accordance with the Principal’s reasonable expectations to the extent actually known by me and, otherwise, in the Principal’s best interest;
- Act in good faith; and
- Act only within the scope of authority granted to me by the Principal and by Pennsylvania law.
Signature of Agent
Date: ___ / ___ / 20___
12. SCHEDULE 1 – SPECIFIC POWERS GRANTED
[// GUIDANCE: Check or list only those powers the Principal intends to grant. Powers marked “★” require the separate grant under § 5601.3 and must also be checked in Section 3.4.]
☐ Real-Estate Transactions
☐ Banking & Financial Transactions
☐ Securities & Commodities
☐ Business Operations
☐ Insurance & Annuities
☐ Estates, Trusts & Beneficiary Transactions
☐ Personal Property
☐ Digital Assets ★
☐ Tax Matters
☐ Litigation & Claims
☐ Gifts (annual exclusion, charitable, and other) ★
☐ Creation/Modification of Trusts ★
☐ Beneficiary Designations ★
☐ Disclaimers & Renunciations ★
☐ Retirement Plan Transactions
☐ Family Maintenance & Support
[Add narrative limitations or expansions as needed.]
13. SCHEDULE 2 – SAMPLE REVOCATION NOTICE
[PRINCIPAL NAME] hereby revokes in its entirety the Durable Financial Power of Attorney dated __, 20_, naming ___ as Agent.
Effective upon execution.
Signed this ___ day of _, 20.
[PRINCIPAL NAME], Principal
Witness 1: ___
Witness 2: ___
Notary (if required): ___
[// GUIDANCE: File or record this Revocation Notice wherever the original POA was relied upon (banks, title offices, Recorder of Deeds, etc.). Provide written notice to the Agent and any relevant third parties.]
END OF DOCUMENT