2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 56 - Powers of Attorney
5603 - Implementation of power of attorney.

     § 5603.  Implementation of power of attorney.
        (a)  Power to make limited gifts.--
            (1)  (Deleted by amendment).
            (2)  A power "to make limited gifts" shall mean that the
        agent may make only gifts for or on behalf of the principal
        which are limited as follows:
                (i)  The class of permissible donees under this
            paragraph shall consist solely of the principal's spouse,
            issue and a spouse of the principal's issue (including
            the agent if a member of any such class), or any of them.
                (ii)  During each calendar year, the gifts made to
            any permissible donee, pursuant to such power, shall have
            an aggregate value not in excess of, and shall be made in
            such manner as to qualify in their entirety for, the
            annual exclusion from the Federal gift tax permitted
            under section 2503(b) of the Internal Revenue Code of
            1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) for the
            principal and, if applicable, the principal's spouse.
                (iii)  (Deleted by amendment).
                (iv)  In addition to the gifts authorized by
            subparagraphs (i) and (ii), a gift made pursuant to such
            power may be for the tuition or medical care of any
            permissible donee to the extent that the gift is excluded
            from the Federal gift tax under section 2503(e) of the
            Internal Revenue Code of 1986 as a qualified transfer.
                (v)  The agent may consent, pursuant to section
            2513(a) of the Internal Revenue Code of 1986, to the
            splitting of gifts made by the principal's spouse to the
            principal's issue or a spouse of the principal's issue in
            any amount and to the splitting of gifts made by the
            principal's spouse to any other person in amounts not
            exceeding the aggregate annual gift tax exclusions for
            both spouses under section 2503(b) of the Internal
            Revenue Code of 1986.
            (3)  (Deleted by amendment).
            (4)  (Deleted by amendment).
            (5)  (Deleted by amendment).
        (b)  Power to create a trust.--A power "to create a trust for
     my benefit" shall mean that the agent may execute a deed of
     trust, designating one or more persons (including the agent) as
     original or successor trustees and transfer to the trust any or
     all property owned by the principal as the agent may decide,
     subject to the following conditions:
            (1)  The income and corpus of the trust shall either be
        distributable to the principal or to the guardian of his
        estate, or be applied for the principal's benefit, and upon
        the principal's death, any remaining balance of corpus and
        unexpended income of the trust shall be distributed to the
        deceased principal's estate.
            (2)  The deed of trust may be amended or revoked at any
        time and from time to time, in whole or in part, by the
        principal or the agent, provided that any such amendment by
        the agent shall not include any provision which could not be
        included in the original deed.
        (c)  Power to make additions to an existing trust.--A power
     "to make additions to an existing trust for my benefit" shall
     mean that the agent, at any time or times, may add any or all of
     the property owned by the principal to any trust in existence
     when the power was created, provided that the terms of such
     trust relating to the disposition of the income and corpus
     during the lifetime of the principal are the same as those set
     forth in subsection (b). The agent and the trust and its
     beneficiaries shall be answerable as equity and justice may
     require to the extent that an addition to a trust is
     inconsistent with prudent estate planning or financial
     management for the principal or with the known or probable
     intent of the principal with respect to disposition of his
     estate.
        (d)  Power to claim an elective share.--A power "to claim an
     elective share of the estate of my deceased spouse" shall mean
     that the agent may elect to take against the will and
     conveyances of the principal's deceased spouse, disclaim any
     interest in property which the principal is required to disclaim
     as a result of such election, retain any property which the
     principal has the right to elect to retain, file petitions
     pertaining to the election, including petitions to extend the
     time for electing and petitions for orders, decrees and
     judgments in accordance with section 2211(c) and (d) (relating
     to determination of effect of election; enforcement), and take
     all other actions which the agent deems appropriate in order to
     effectuate the election: Provided, however, That the election
     shall be made only upon the approval of the court having
     jurisdiction of the principal's estate in accordance with
     section 2206 (relating to right of election personal to
     surviving spouse) in the case of a principal who has been
     adjudicated an incapacitated person, or upon the approval of the
     court having jurisdiction of the deceased spouse's estate in the
     case of a principal who has not been adjudicated an
     incapacitated person.
        (e)  Power to disclaim any interest in property.--A power "to
     disclaim any interest in property" shall mean that the agent may
     release or disclaim any interest in property on behalf of the
     principal in accordance with Chapter 62 (relating to
     disclaimers) or section 6103 (relating to release or disclaimer
     of powers or interests), provided that any disclaimer under
     Chapter 62 shall be in accordance with the provisions of section
     6202 (relating to disclaimers by fiduciaries or agents) in the
     case of a principal who shall have been adjudicated an
     incapacitated person at the time of the execution of the
     disclaimer.
        (f)  Power to renounce fiduciary position.--
            (1)  A power "to renounce fiduciary positions" shall mean
        that the agent may:
                (i)  renounce any fiduciary position to which the
            principal has been appointed; and
                (ii)  resign any fiduciary position in which the
            principal is then serving, and either file an accounting
            with a court of competent jurisdiction or settle on
            receipt and release or other informal method as the agent
            deems advisable.
            (2)  The term "fiduciary" shall be deemed to include,
        without limitation, an executor, administrator, trustee,
        guardian, agent or officer or director of a corporation.
        (g)  Power to withdraw and receive.--A power "to withdraw and
     receive the income or corpus of a trust" shall mean that the
     agent may:
            (1)  demand, withdraw and receive the income or corpus of
        any trust over which the principal has the power to make
        withdrawals;
            (2)  request and receive the income or corpus of any
        trust with respect to which the trustee thereof has the
        discretionary power to make distribution to or on behalf of
        the principal; and
            (3)  execute a receipt and release or similar document
        for the property received under paragraphs (1) and (2).
        (h)  Power to authorize admission to medical facility and
     power to authorize medical procedures.--
            (1)  A power "to authorize my admission to a medical,
        nursing, residential or similar facility, and to enter into
        agreements for my care" shall mean that the agent may apply
        for the admission of the principal to a medical, nursing,
        residential or other similar facility, execute any consent or
        admission forms required by such facility which are
        consistent with this paragraph, and enter into agreements for
        the care of the principal by such facility or elsewhere
        during his lifetime or for such lesser period of time as the
        agent may designate, including the retention of nurses for
        the principal.
            (2)  A power "to authorize medical and surgical
        procedures" shall mean that the agent may arrange for and
        consent to medical, therapeutical and surgical procedures for
        the principal, including the administration of drugs.
        (i)  Power to engage in real property transactions.--A power
     to "engage in real property transactions" shall mean that the
     agent may:
            (1)  Acquire or dispose of real property (including the
        principal's residence) or any interest therein, including,
        but not limited to, the power to buy or sell at public or
        private sale for cash or credit or partly for each; exchange,
        mortgage, encumber, lease for any period of time; give or
        acquire options for sales, purchases, exchanges or leases;
        buy at judicial sale any property on which the principal
        holds a mortgage.
            (2)  Manage, repair, improve, maintain, restore, alter,
        build, protect or insure real property; demolish structures
        or develop real estate or any interest in real estate.
            (3)  Collect rent, sale proceeds and earnings from real
        estate; pay, contest, protest and compromise real estate
        taxes and assessments.
            (4)  Release in whole or in part, assign the whole or a
        part of, satisfy in whole or in part and enforce any
        mortgage, encumbrance, lien or other claim to real property.
            (5)  Grant easements, dedicate real estate, partition and
        subdivide real estate and file plans, applications or other
        documents in connection therewith.
            (6)  In general, exercise all powers with respect to real
        property that the principal could if present.
        (j)  Power to engage in tangible personal property
     transactions.--A power to "engage in tangible personal property
     transactions" shall mean that the agent may:
            (1)  Buy, sell, lease, exchange, collect, possess and
        take title to tangible personal property.
            (2)  Move, store, ship, restore, maintain, repair,
        improve, manage, preserve and insure tangible personal
        property.
            (3)  In general, exercise all powers with respect to
        tangible personal property that the principal could if
        present.
        (k)  Power to engage in stock, bond and other securities
     transactions.--A power to "engage in stock, bond and other
     securities transactions" shall mean that the agent may:
            (1)  Buy or sell (including short sales) at public or
        private sale for cash or credit or partly for cash all types
        of stocks, bonds and securities; exchange, transfer,
        hypothecate, pledge or otherwise dispose of any stock, bond
        or other security.
            (2)  Collect dividends, interest and other distributions.
            (3)  Vote in person or by proxy, with or without power of
        substitution, either discretionary, general or otherwise, at
        any meeting.
            (4)  Join in any merger, reorganization, voting-trust
        plan or other concerted action of security holders and make
        payments in connection therewith.
            (5)  Hold any evidence of the ownership of any stock,
        bond or other security belonging to the principal in the name
        of a nominee selected by the agent.
            (6)  Deposit or arrange for the deposit of securities in
        a clearing corporation as defined in Division 8 of Title 13
        (relating to investment securities).
            (7)  Receive, hold or transfer securities in book-entry
        form.
            (8)  In general, exercise all powers with respect to
        stocks, bonds and securities that the principal could if
        present.
        (l)  Power to engage in commodity and option transactions.--A
     power to "engage in commodity and option transactions" shall
     mean that the agent may:
            (1)  Buy, sell, exchange, assign, convey, settle and
        exercise commodities future contracts and call and put
        options on stocks and stock indices traded on a regulated
        options exchange and collect and receipt for all proceeds of
        any such transactions.
            (2)  Establish or continue option accounts for the
        principal with any securities of a futures broker.
            (3)  In general, exercise all powers with respect to
        commodity and option transactions that the principal could if
        present.
        (m)  Power to engage in banking and financial transactions.--
     A power to "engage in banking and financial transactions" shall
     mean that the agent may:
            (1)  Sign checks, drafts, orders, notes, bills of
        exchange and other instruments ("items") or otherwise make
        withdrawals from checking, savings, transaction, deposit,
        loan or other accounts in the name of the principal and
        endorse items payable to the principal and receive the
        proceeds in cash or otherwise.
            (2)  Open and close such accounts in the name of the
        principal, purchase and redeem savings certificates,
        certificates of deposit or similar instruments in the name of
        the principal and execute and deliver receipts for any funds
        withdrawn or certificates redeemed.
            (3)  Deposit any funds received for the principal in
        accounts of the principal.
            (4)  Do all acts regarding checking, savings,
        transaction, deposit, loan or other accounts, savings
        certificates, certificates of deposit or similar instruments,
        the same as the principal could do if personally present.
            (5)  Sign any tax information or reporting form required
        by Federal, State or local taxing authorities, including, but
        not limited to, any Form W-9 or similar form.
            (6)  In general, transact any business with a banking or
        financial institution that the principal could if present.
        (n)  Power to borrow money.--A power to "borrow money" shall
     mean that the agent may borrow money and pledge or mortgage any
     properties that the principal owns as a security therefor.
        (o)  Power to enter safe deposit boxes.--A power to "enter
     safe deposit boxes" shall mean that the agent may enter any safe
     deposit box in the name of the principal; add to or remove the
     contents of such box, open and close safe deposit boxes in the
     name of the principal; however, the agent shall not deposit or
     keep in any safe deposit box of the principal any property in
     which the agent has a personal interest.
        (p)  Power to engage in insurance transactions.--A power to
     "engage in insurance transactions" shall mean that the agent
     may:
            (1)  Purchase, continue, renew, convert or terminate any
        type of insurance (including, but not limited to, life,
        accident, health, disability or liability insurance) and pay
        premiums and collect benefits and proceeds under insurance
        policies.
            (2)  Exercise nonforfeiture provisions under insurance
        policies.
            (3)  In general, exercise all powers with respect to
        insurance that the principal could if present; however, the
        agent cannot designate himself beneficiary of a life
        insurance policy unless the agent is the spouse, child,
        grandchild, parent, brother or sister of the principal.
        (q)  Power to engage in retirement plan transactions.--A
     power to "engage in retirement plan transactions" shall mean
     that the agent may contribute to, withdraw from and deposit
     funds in any type of retirement plan (including, but not limited
     to, any tax qualified or nonqualified pension, profit sharing,
     stock bonus, employee savings and retirement plan, deferred
     compensation plan or individual retirement account), select and
     change payment options for the principal, make roll-over
     contributions from any retirement plan to other retirement plans
     and, in general, exercise all powers with respect to retirement
     plans that the principal could if present.
        (r)  Power to handle interests in estates and trusts.--A
     power to "handle interests in estates and trusts" shall mean
     that the agent may receive a bequest, devise, gift or other
     transfer of real or personal property to the principal in the
     principal's own right or as a fiduciary for another and give
     full receipt and acquittance therefor or a refunding bond
     therefor; approve accounts of any estate, trust, partnership or
     other transaction in which the principal may have an interest;
     and enter into any compromise and release in regard thereto.
        (s)  Power to pursue claims and litigation.--A power to
     "pursue claims and litigation" shall mean that the agent may:
            (1)  Institute, prosecute, defend, abandon, arbitrate,
        compromise, settle or otherwise dispose of, and appear for
        the principal in, any legal proceedings before any tribunal
        regarding any claim relating to the principal or to any
        property interest of the principal.
            (2)  Collect and receipt for any claim or settlement
        proceeds; waive or release rights of the principal; employ
        and discharge attorneys and others on such terms (including
        contingent fee arrangements) as the agent deems appropriate.
            (3)  In general, exercise all powers with respect to
        claims and litigation that the principal could if present.
        (t)  Power to receive government benefits.--A power to
     "receive government benefits" shall mean that the agent may
     prepare, sign and file any claim or application for Social
     Security, unemployment, military service or other government
     benefits; collect and receipt for all government benefits or
     assistance; and, in general, exercise all powers with respect to
     government benefits that the principal could if present.
        (u)  Power to pursue tax matters.--A power to "pursue tax
     matters" shall mean that the agent may:
            (1)  Prepare, sign, verify and file any tax return on
        behalf of the principal, including, but not limited to, joint
        returns and declarations of estimated tax; examine and copy
        all the principal's tax returns and tax records.
            (2)  Sign an Internal Revenue Service power of attorney
        form.
            (3)  Represent the principal before any taxing authority;
        protest and litigate tax assessments; claim, sue for and
        collect tax refunds; waive rights and sign all documents
        required to settle, pay and determine tax liabilities; sign
        waivers extending the period of time for the assessment of
        taxes or tax deficiencies.
            (4)  In general, exercise all powers with respect to tax
        matters that the principal could if present.
        (u.1)  Power to make anatomical gift.--A power "to make an
     anatomical gift of all or part of my body" shall mean that the
     agent may arrange and consent, either before or after the death
     of the principal, to procedures to make an anatomical gift in
     accordance with Chapter 86 (relating to anatomical gifts).
        (v)  Powers generally.--All powers described in this section
     shall be exercisable with respect to any matter in which the
     principal is in any way interested at the giving of the power of
     attorney or thereafter and whether arising in this Commonwealth
     or elsewhere.
     (April 16, 1992, P.L.108, No.24, eff. 60 days; Dec. 16, 1992,
     P.L.1163, No.152, eff. imd.; Dec. 1, 1994, P.L.655, No.102, eff.
     90 days; Oct. 12, 1999, P.L.422, No.39, eff. 60 days)

        1999 Amendment.  Section 13(6) of Act 39 provided that the
     repeal of subsec. (a)(2)(iii), (3), (4) and (5) shall apply
     beginning with the effective date of the repeal of that section.
        Cross References.  Section 5603 is referred to in sections
     2206, 5601.2, 5602 of this title.