A power of attorney (POA) is one of the most important tools in the estate planning toolkit. People use these versatile documents to accomplish various goals. Since 1990, Ruggiero Law Offices have helped Pennsylvania families like yours protect what matters most. Led by James "Jim" Ruggiero, Jr., Esq., and supported by a skilled team of attorneys and legal professionals, our firm brings practical, common-sense solutions to estate planning, trust administration, and elder law challenges. We help you understand how different powers of attorney solutions provide many benefits in your estate plan.
What Is a Power of Attorney?
In general, a power of attorney gives one person, called the agent, the legal authority to make certain decisions on behalf of another person, known as the principal. The agent’s decisions and actions are legally binding, just as if they were the principal’s own actions. People often use certain POAs to fulfill different functions. Pennsylvania law recognizes three main kinds of POAs.
Durable
A durable power of attorney may give the agent power to make legal, financial, or health care decisions on behalf of the principal. The agent must act in the principal’s best interest, and the POA may also place other restrictions on the agent’s authority. Durable POAs remain in effect until the principal’s death. As of 1992, courts presume all Pennsylvania POAs to be durable unless they specifically provide otherwise.
Limited
A limited power of attorney, sometimes called a simple POA, is the opposite of a durable POA, as it's typically effective for only a short time, usually for the duration of a specific transaction. Limited POAs usually contain specific instructions and conditions for the type of decisions the agent may make on the principal’s behalf. For example, a limited POA might direct an agent to attend a real estate closing and pay closing costs on behalf of the principal.
Springing
A springing power of attorney only becomes effective upon the occurrence of a specified event. Most often, the triggering event is when the principal becomes mentally or physically incapacitated.
Trust Ruggiero Law Offices to Help You Make the Best Choice
A POA is a useful device in the event that someone is unable to make their own decisions. Our estate planning attorneys believe in having authentic conversations about your needs and concerns and crafting solutions that give you confidence about the future. Talk to us about how you can gain peace of mind.