Thursday, August 26, 2010

Changes in Pennsylvania Powers of Attorney

Are your powers of attorney documents up to date?

Powers of attorney that are over ten years old in Pennsylvania are likely to be considered invalid, because there were major changes in the law around 2000.

Regardless of changes in the law, it is important that your powers of attorney documents don't go "stale." You want to make sure that institutions, hospitals, etc. will view your power of attorney as valid. Banks, governement agencies, etc will be hesitant to accept powers of attorney over 10 years old.

Experience tells us that powers of attorney documents, which allow someone to manage your affairs if you can't make decisions for yourself (due to disability or incapacity) are more important than a will or living trust (your death wishes). Over half of us will, at some point, experience extensive disability and we will need someone to guard over our affairs.

If you do not have a power of attorney and you become disabled, you run the risk of needing a guardian appointed by a court. Guardianship proceedings, even if uncontested, are burdensome and expensive. Guardians are then under regular court supervision. A well drafted and updated power of attorney avoids all of this. Compared with guardianship proceedings, drafting powers of attorney is simple and economical.

Everyone in Pennsylvania should have a financial power of attorney and medical power of attorney, with end of life instructions.

The law in Pennsylvania is going to change again soon, and powers of attorney language regarding gifting and retirement accounts will become more stringent, to the benefit of most Pennsylvanians. Keep a watch on this blog for any updates.

Meanwhile, please contact us to have your powers of attorney either drafted or updated today. We can be reached at (215) 706-0200 or info@jawatlaw.com.