2012 Pennsylvania Consolidated Statutes
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 56 - Powers of Attorney
Section 5601 - General provisions

POWERS OF ATTORNEY

Sec.

5601.  General provisions.

5601.1. Powers of attorney presumed durable.

5601.2. Special rules for gifts.

5602.  Form of power of attorney.

5603.  Implementation of power of attorney.

5604.  Durable powers of attorney.

5605.  Power of attorney not revoked until notice.

5606.  Proof of continuance of powers of attorney by affidavit.

5607.  Corporate agent.

5608.  Liability.

5609.  Compensation and reimbursement for expenses.

5610.  Account.

5611.  Validity.

Enactment.  Present Chapter 56 was added February 18, 1982, P.L.45, No.26, effective immediately.

Applicability.  Section 13 of Act 26 of 1982 provided that Chapter 56 shall apply to all powers of attorney executed on or after the date of enactment of Act 26 and provided that nothing in Act 26 shall be construed to limit the effectiveness of powers of attorney in effect prior to the date of enactment of Act 26.

Prior Provisions.  Former Chapter 56, which related to the same subject matter, was added December 10, 1974, P.L.899, No.295, and repealed February 18, 1982, P.L.45, No.26, effective immediately.

Cross References.  Chapter 56 is referred to in sections 711, 5601, 7732 of this title section 2713 0f Title 18 (Crimes and Offenses).

§ 5601.  General provisions.

(a)  General rule.--In addition to all other powers that may be delegated to an agent, any or all of the powers referred to in section 5602(a) (relating to form of power of attorney) may lawfully be granted in writing to an agent and, unless the power of attorney expressly directs to the contrary, shall be construed in accordance with the provisions of this chapter.

(b)  Execution.--A power of attorney shall be signed and dated by the principal by signature or mark, or by another on behalf of and at the direction of the principal. If the power of attorney is executed by mark or by another individual, then it shall be witnessed by two individuals, each of whom is 18 years of age or older. A witness shall not be the individual who signed the power of attorney on behalf of and at the direction of the principal.

(c)  Notice.--All powers of attorney shall include the following notice in capital letters at the beginning of the power of attorney. The notice shall be signed by the principal. In the absence of a signed notice, upon a challenge to the authority of an agent to exercise a power under the power of attorney, the agent shall have the burden of demonstrating that the exercise of this authority is proper.

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 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.

Your agent may exercise the powers given here throughout your lifetime, even after you become incapacitated, unless you expressly limit the duration of these powers or you revoke these powers or a court acting on your behalf terminates your agent's authority.

Your agent must keep your funds separate from your agent's funds.

A court can take away the powers of your agent if it finds your agent is not acting properly.

The powers and duties of an agent under a power of attorney are explained more fully in 20 Pa.C.S. Ch. 56.

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.

I have read or had explained to me this notice and I understand its contents.

(d)  Acknowledgment executed by agent.--An agent shall have no authority to act as agent under the power of attorney unless the agent has first executed and affixed to the power of attorney an acknowledgment in substantially the following form:

attorney and am the person identified as the agent for the principal. I hereby acknowledge that in the absence of a specific provision to the contrary in the power of attorney or in 20 Pa.C.S. when I act as agent:

I shall exercise the powers for the benefit of the principal.

I shall keep the assets of the principal separate from my assets.

I shall exercise reasonable caution and prudence.

I shall keep a full and accurate record of all actions, receipts and disbursements on behalf of the principal.

(e)  Fiduciary relationship.--An agent acting under a power of attorney has a fiduciary relationship with the principal. In the absence of a specific provision to the contrary in the power of attorney, the fiduciary relationship includes the duty to:

(1)  Exercise the powers for the benefit of the principal.

(2)  Keep separate the assets of the principal from those of an agent.

(3)  Exercise reasonable caution and prudence.

(4)  Keep a full and accurate record of all actions, receipts and disbursements on behalf of the principal.

(e.1)  Limitation on applicability in commercial transaction.--

(1)  Subsections (c), (d) and (e) do not apply to a power or a power of attorney contained in an instrument used in a commercial transaction which simply authorizes an agency relationship. This paragraph includes the following:

(i)  A power given to or for the benefit of a creditor in connection with a loan or other credit transaction.

(ii)  A power exclusively granted to facilitate transfer of stock, bonds and other assets.

(iii)  A power contained in the governing document for a corporation, partnership or limited liability company or other legal entity by which a director, partner or member authorizes others to do other things on behalf of the entity.

(iv)  A warrant of attorney conferring authority to confess judgment.

(v)  A power given to a dealer as defined by the act of December 22, 1983 (P.L.306, No.84), known as the Board of Vehicles Act, when using the power in conjunction with a sale, purchase or transfer of a vehicle as authorized by 75 Pa.C.S. § 1119 (relating to application for certificate of title by agent).

(2)  Powers and powers of attorney exempted by this subsection need not be dated.

(e.2)  Limitation on applicability in health care power of attorney.--Subsections (c) and (d) do not apply to a power of attorney which exclusively provides for health care decision making.

(f)  Definition.--As used in this chapter, the term "agent" means a person designated by a principal in a power of attorney to act on behalf of that principal.

(Dec. 16, 1992, P.L.1163, No.152, eff. imd.; Oct. 12, 1999, P.L.422, No.39; May 16, 2002, P.L.330, No.50, eff. Apr. 12, 2000; Nov. 25, 2003, P.L.211, No.36, eff. 60 days)

2003 Amendment.  Act 36 amended subsec. (e.1).

2002 Amendment.  Act 50 added subsecs. (e.1) and (e.2). See section 14(a) of Act 50 in the appendix to this title for special provisions relating to applicability.

1999 Amendment.  Act 39 amended the entire section, effective in six months as to subsecs. (c) and (d) and 60 days as to the remainder of the section. See section 13(1), (2), (3) and (8) of Act 39 in the appendix to this title for special provisions relating to applicability.

Cross References.  Section 5601 is referred to in section 5843 of this title.