The state of Pennsylvania has approved broad changes to the law governing Powers of Attorney.  A Power of Attorney is a written document that allows someone to appoint a person or organization to manage their affairs if they become unable to do so.

House Bill 1429 was unanimously passed by the State House and Senate and signed into law by the Governor of Pennsylvania on July 2, 2014.  The following is an overview of some of the changes that are significant for our clients:

1. The law modifies the execution requirements for Power of Attorney.  Powers that are executed after January 1, 2015 must be acknowledged before a Notary Public and witnessed by two individuals, neither of whom is the Agent named onto the Power of Attorney.
2. The language of the Notice that must be attached to the front of the Power of Attorney is modified.  Specifically it must warn that the Power of Attorney document may grant the Agent the power to give away the principal’s property or change how the property is distributed at death.  It also must provide that the principal is advised to seek the advice of an attorney-at-law before signing the Power of Attorney.
3. These requirements for the execution of the Power of Attorney do not apply to Powers of Attorney which only provide for making health care decisions or mental health care decisions.

The new law also limits the powers of an Agent under the Power of Attorney to take certain actions unless the authority is expressly granted in the Power of Attorney.  These expressed grant actions that must be specifically authorized include:

• the ability to make a gift on behalf of the principal
• to change or create rights for survivorship for the principal’s assets
• to change or create a beneficiary designation, to disclaim property
• and to delegate authority granted Power of Attorney

If you have not recently reviewed your existing Power of Attorney, it would be wise to contact your attorney to review the document in light of the new law changes.

For more information contact Stacey Willits McConnell –Chair of Lamb McErlane’s Estate Planning and Trusts Department.610.701.4431

At Lamb McErlane, Ms. McConnell concentrates her practice in estate planning, administration of trusts and estates, charitable giving, and sophisticated wealth preservation and transfer techniques. Stacey is a member of Board of Trustees of The Episcopal Academy, serves on the Board of Directors for The Chester County Community Foundation andMain Line Animal Rescue (MLAR) and is also a member of the Philadelphia Estate Planning Council. She is a graduate of Duke University, Stetson College of Law and theGraduate Tax Program at Boston University School of Law.

Lamb McErlane PC, a full service law firm based in West Chester, Pennsylvania, comprises 30+ attorneys and has built a reputation on delivering the highest caliber of legal service in an environment focused on personal attention and results. Bringing the sophistication and experience often equated with large, metropolitan firms, Lamb McErlane’shighly efficient, focused approach produces results clients demand.

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