Durable Power of Attorney Form for Pennsylvania

DURABLE POWER OF ATTORNEY (PENNSYLVANIA)

DOCUMENT ID: DPOA-PA-2024-V1
EFFECTIVE DATE: [Effective Date]
VERSION: 1.01-STABLE
GOVERNING JURISDICTION: COMMONWEALTH OF PENNSYLVANIA

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I. STATUTORY & LEGAL COMPLIANCE NOTICE

NOTICE TO PRINCIPAL: 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 TO YOU OR APPROVAL BY YOU.

THIS POWER OF ATTORNEY DOES NOT IMPOSE A DUTY ON YOUR AGENT TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED, YOUR AGENT MUST USE DUE CARE TO ACT FOR YOUR BENEFIT AND IN ACCORDANCE WITH THIS POWER OF ATTORNEY. A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENT IF IT FINDS YOUR AGENT IS NOT ACTING PROPERLY.

YOU MAY POTENTIALLY RECOVE FROM YOUR AGENT THE VALUE OF PROPERTY LOST OR THE PROFIT THAT YOUR AGENT WOULD HAVE MADE BUT FOR A BREACH OF DUTY. UNTIL YOU REVOKE THIS POWER OF ATTORNEY OR A COURT TERMINATES IT, IT SHALL REMAIN IN FULL FORCE AND EFFECT EVEN THOUGH YOU MAY BECOME INCAPACITATED OR UNABLE TO MANAGE YOUR OWN AFFAIRS.

IF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAND, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU.

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II. PARTIES & RECITALS

1. IDENTIFICATION OF PRINCIPAL. I, [Principal Full Legal Name], residing at [Principal Residential Address], (the "Principal"), being of sound mind and acting of my own free will, do hereby appoint and designate the Agent(s) named below to act in my name, place, and stead.

2. IDENTIFICATION OF AGENT. I hereby appoint [Agent Full Legal Name], residing at [Agent Residential Address], as my Attorney-in-Fact (the "Agent").

3. IDENTIFICATION OF SUCCESSOR AGENT (OPTIONAL). In the event the Agent named above is unable or unwilling to serve, I appoint [Successor Agent Full Legal Name], residing at [Successor Agent Address], as my Successor Agent.

4. EFFECTIVE DATE. This Power of Attorney shall become effective on [Effective Date / OR / the date of execution].

5. DURABILITY. This Power of Attorney is "Durable." It shall not be affected by my subsequent disability or incapacity. All acts done by my Agent pursuant to this Power of Attorney during any period of my disability or incapacity shall have the same effect and inure to the benefit of and bind me and my successors in interest as if I were competent and not disabled.

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III. EXHAUSTIVE OPERATIVE CLAUSES

1. GENERAL GRANT OF AUTHORITY

I grant my Agent and any Successor Agent the full power and authority to exercise or perform any act, power, duty, right, or obligation whatsoever that I now have or may hereafter acquire the legal right, power, or capacity to exercise or perform in connection with, arising out of, or relating to any person, item, transaction, thing, business, property, real or personal, tangible or intangible, or matter whatsoever.

2. SPECIFIC POWERS (PENNSYLVANIA STATUTORY AUTHORITY)

Pursuant to 20 Pa. C.S. § 5602 and § 5603, my Agent is authorized to perform the following:

A. Real Property Transactions: To buy, sell, lease, mortgage, release, convey, manage, or otherwise dispose of any interest in real property; to execute, acknowledge, and deliver deeds, transfers, mortgages, and leases. B. Tangible Personal Property: To buy, sell, lease, and exchange tangible personal property and to grant security interests in such property. C. Financial Institution Transactions: To open, close, and maintain accounts (checking, savings, certificates of deposit); to withdraw funds; to sign checks and drafts; to access safe deposit boxes. D. Stock and Bond Transactions: To buy, sell, and exchange stocks, bonds, mutual funds, and all other types of securities; to exercise voting rights and proxy powers. E. Insurance and Annuity Transactions: To purchase, continue, or terminate insurance policies (life, health, disability, liability); to select and change beneficiaries (subject to specific limitations herein). F. Estate and Beneficiary Transactions: To accept, receipt for, or waive any interest in an estate or trust; to exercise powers of appointment. G. Claims and Litigation: To institute, prosecute, defend, settle, or compromise any claim, action, or proceeding in any court or administrative agency. H. Personal and Family Maintenance: To perform acts necessary to maintain the standard of living of the Principal and the Principal’s family. I. Government Benefits: To apply for and receive benefits from the Social Security Administration, Medicare, Medicaid, and the Department of Veterans Affairs. J. Tax Matters: To prepare, sign, and file federal, state, and local income, gift, and other tax returns (including IRS Form 2848); to represent the Principal before tax authorities.

3. LIMITATIONS ON AGENT’S POWERS

Notwithstanding any other provision, the Agent shall NOT have the power to:

• Make, amend, or revoke the Principal's Will.
• Change a beneficiary designation on a life insurance policy or retirement plan unless specifically authorized by an addendum to this document.
• Exercise powers that would cause the Agent's assets to become subject to a general power of appointment as defined in the Internal Revenue Code.

4. COMPENSATION AND REIMBURSEMENT

The Agent shall be entitled to:

• Reimbursement: Full reimbursement for all reasonable and necessary expenses incurred in the performance of duties under this document.
• Compensation: (Select one)
  • No compensation.
  • A reasonable fee for services rendered, consistent with Pennsylvania law.
  • A fixed amount of [Amount in USD] per [Month/Year/Hour].

5. AGENT’S FIDUCIARY DUTIES AND LIABILITY

The Agent shall act in accordance with the Principal’s reasonable expectations to the extent actually known by the Agent and, otherwise, in the Principal’s best interest. The Agent shall act in good faith and only within the scope of authority granted. The Agent shall keep a record of all receipts, disbursements, and transactions made on behalf of the Principal.

Indemnification: The Principal hereby agrees to indemnify and hold the Agent harmless from any and all liability, losses, or damages incurred while acting in good faith on behalf of the Principal, except in cases of willful misconduct or gross negligence.

6. THIRD-PARTY RELIANCE

No person who relies in good faith upon the representations of the Agent or this Power of Attorney shall be liable to the Principal or the Principal's estate for any loss resulting from such reliance. Any third party may rely on a photocopy or electronic transmission of this document as if it were the original.

7. DISPUTE RESOLUTION

Any dispute arising under or in connection with this Power of Attorney shall be resolved through binding arbitration in the county of the Principal's residence, in accordance with the rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

8. MISCELLANEOUS PROVISIONS

• Severability: If any part of this document is held invalid, the remainder shall continue in full force.
• Governing Law: This document is governed by the laws of the Commonwealth of Pennsylvania.
• Entire Agreement: This document constitutes the entire agreement regarding the Agent's power of attorney and supersedes any prior oral or written agreements.

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IV. EXECUTION & FORMAL SIGNATURE BLOCKS

FOR THE PRINCIPAL: I, [Principal Full Legal Name], sign my name to this Durable Power of Attorney this [Day] day of [Month], [Year].

Signature: _____________________________________ Printed Name: [Principal Full Legal Name] Address: [Principal Address]

WITNESS ATTESTATION: The undersigned witnesses certify that the Principal signed this Durable Power of Attorney in our presence and appeared to be of sound mind and under no duress.

Witness 1: Signature: _____________________________________ Printed Name: __________________________________ Address: _______________________________________

Witness 2: Signature: _____________________________________ Printed Name: __________________________________ Address: _______________________________________

NOTARY ACKNOWLEDGMENT: COMMONWEALTH OF PENNSYLVANIA COUNTY OF ____________________

On this, the ____ day of ________, 20, before me, the undersigned officer, personally appeared [Principal Full Legal Name], known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he/she executed the same for the purposes therein contained.

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Notary Public My Commission Expires: __________________

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V. AGENT'S STATUTORY ACKNOWLEDGMENT

(Mandatory under 20 Pa. C.S. § 5601(d))

I, [Agent Full Legal Name], have read the attached power of attorney and am the person identified as the agent for the principal. I hereby acknowledge that when I act as agent:

1. I shall exercise the powers for the benefit of the principal.
2. I shall keep the assets of the principal separate from my assets.
3. I shall exercise reasonable care, skill and caution.
4. I shall keep a full and accurate record of all actions, receipts and disbursements on behalf of the principal.

FOR THE AGENT: Signature: _____________________________________ Printed Name: [Agent Full Legal Name] Title: Agent / Attorney-in-Fact Date: [Date]

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VI. STEP-BY-STEP EXECUTION & FILING GUIDE

1. Review and Customize: Open the document in a word processor. Replace all bracketed text (e.g., [Principal Full Legal Name]) with the actual legal names and addresses of the parties. Ensure the "Compensation" section is checked correctly.
2. Verify Signatory Authority: The Principal must be of sound mind and at least 18 years of age. The Agent must be at least 18 years of age.
3. Physical Execution (Recommended): While digital signatures (DocuSign) are increasingly accepted, many Pennsylvania financial institutions and County Recorders of Deeds still require "wet ink" signatures for real estate transactions involving a POA.
4. Witnessing and Notarization:
   • The Principal must sign in the presence of two (2) adult witnesses and a Notary Public.
   • The witnesses may not be the Agent, the Notary, or the person signing on behalf of the Principal.
5. Agent's Acknowledgment: The Agent must sign the "Agent's Statutory Acknowledgment" before they can legally exercise any power. This can be signed after the Principal signs, but must be attached to the document.
6. Filing and Recording:
   • Financial Institutions: Provide a certified copy or the original to the Principal's banks and investment firms.
   • Real Estate: If the Agent is to sell or transfer real property, the original document must be recorded in the Office of the Recorder of Deeds in the county where the property is located.
7. Record Retention: The Agent must maintain the original document in a secure location and keep a detailed ledger of all transactions performed under this authority to satisfy Pennsylvania's strict accounting requirements for fiduciaries.