A power of attorney in Pennsylvania is not a single document. A financial power of attorney authorizes an agent to manage money and property and must be signed, notarized, and witnessed by two adults under 20 Pa.C.S. Chapter 56. A healthcare power of attorney authorizes an agent to make medical decisions once a physician determines that the principal lacks capacity, and it requires only two witnesses, not a notary, under 20 Pa.C.S. Chapter 54. Most complete estate plans include both. We explain how each works, when it takes effect, and how to set one up below.
A power of attorney is one of the most important documents in an estate plan, yet many people assume one document covers everything. In Pennsylvania, financial and healthcare powers of attorney are governed by separate chapters of the state code, have different execution requirements, and serve entirely different purposes. Understanding both helps you build a complete plan rather than a partial one.
What Is a Financial Power of Attorney in Pennsylvania
A financial power of attorney, sometimes called a general power of attorney, authorizes an agent to manage your money, property, and business matters. This can include paying bills, managing bank accounts, filing taxes, and handling real estate transactions. Financial powers of attorney in Pennsylvania are governed by 20 Pa.C.S. Chapter 56, which was substantially rewritten by
Act 95 of 2014 to add stronger protections against misuse.
Under 20 Pa.C.S. Section 5601.1, a Pennsylvania power of attorney is durable by default, meaning it remains valid even if you later become incapacitated, unless the document says otherwise. This is usually the entire point of creating one, since it allows a trusted agent to step in without a court-appointed guardianship.
What Is a Healthcare Power of Attorney in Pennsylvania
A healthcare power of attorney authorizes an agent to make medical decisions on your behalf when you cannot make them yourself. This document is governed separately under 20 Pa.C.S. Chapter 54, sections 5451 through 5453. By default, a healthcare agent’s authority becomes active when your attending physician determines you lack the capacity to make your own healthcare decisions. The document can also grant the agent authority to act immediately, without waiting for an incapacity determination, if you prefer.
A healthcare power of attorney can authorize your agent to consent to medical treatment, admit you to a care facility, and make end-of-life decisions consistent with your wishes.
Key Differences in Execution Requirements
| Requirement | Financial POA (Chapter 56) | Healthcare POA (Chapter 54) |
|---|---|---|
| Governing Law | 20 Pa.C.S. Sections 5601 through 5612 | 20 Pa.C.S. Sections 5451 through 5453 |
| Witnesses Required | Two adult witnesses | Two adult witnesses |
| Notarization Required | Yes | No |
| Statutory Notice and Acknowledgment | Required, signed by principal and agent | Not required |
| When Authority Begins | Immediately, unless the document states otherwise | Generally upon a physician’s incapacity determination, unless immediate authority is granted |
| Durable by Default | Yes, under Section 5601.1 | Yes, by nature of the document |
The notary and the two witnesses cannot be the same person, and the agent named in the document cannot serve as the notary for a financial power of attorney. If you are unable to sign because of a physical limitation, Pennsylvania law allows another person to sign on your behalf in the presence of two witnesses.
Agent Duties Under Pennsylvania Law
Once an agent accepts authority under a financial power of attorney, 20 Pa.C.S. Section 5601.3 requires the agent to act consistent with your reasonable expectations, act in good faith, act only within the scope of the authority granted, and keep your funds separate from the agent’s own property except in limited circumstances. These duties exist specifically to reduce the risk of financial abuse by an agent, which remains a real concern in Pennsylvania.
Local Statistics and Why This Matters in Pennsylvania
| Statistic | Figure | Source |
|---|---|---|
| US adults who have completed any advance directive | 36.7 percent | Health Affairs, University of Pennsylvania study |
| Older adults financially exploited nationally | Estimated 1 in 10 | Pennsylvania Department of Aging |
| Older Pennsylvanians who experienced abuse, 2016 to 2017 | Over 28,000 | Pennsylvania Elder Financial Exploitation Guide, PA Department of Aging |
| Fastest growing form of elder abuse in Pennsylvania | Financial exploitation | Pennsylvania Department of Aging |
| New PA Office of Attorney General unit targeting POA misuse | Elder Exploitation Section, launched October 2025 | Pennsylvania Office of Attorney General |
The Pennsylvania Office of Attorney General created its Elder Exploitation Section specifically to address theft committed by a relative, caregiver, or agent acting under a power of attorney. A well-drafted document, paired with a trustworthy agent, is one of the clearest ways to reduce this risk while still keeping your affairs out of court.
Choosing the Right Agent for Each Role
Many people name the same person as both their financial and healthcare agent, often a spouse or adult child, but Pennsylvania law does not require this. Some families choose different agents for each role based on who is best positioned to manage finances versus who is closest to day-to-day medical decisions. Whoever you choose, the agent should be someone you trust completely, since a financial agent in particular has broad authority once the document is executed.
If you are working through this decision, our Pottstown power of attorney page covers the practical factors involved in selecting an agent in more depth.
How These Documents Fit Into a Complete Estate Plan
A financial and healthcare power of attorney are only part of a complete plan. Most Pennsylvania residents pair these documents with a will and, in some cases, a trust. Our wills page explains how these documents work together.
If a loved one becomes incapacitated without either document in place, the family may need to pursue a court-supervised guardianship, which is more costly and time-consuming than a properly executed power of attorney. If you are already administering an estate, our probate page covers what happens after a loved one passes away.
Setting Up a Power of Attorney in Montgomery, Chester, and Berks Counties
We work with individuals and families throughout Pottstown, Malvern, Devon, and the surrounding Montgomery, Chester, and Berks County communities to prepare financial and healthcare powers of attorney as part of a broader estate plan. Because a financial power of attorney requires notarization and specific statutory language, having an attorney prepare the document helps avoid execution errors that could later cause a bank or hospital to question its validity.
Frequently Asked Questions
Can one document cover both financial and healthcare decisions?
Pennsylvania treats these as separate legal instruments, each governed by a different chapter of the code. While some documents combine provisions, it is generally clearer and more reliable to execute separate financial and healthcare powers of attorney.
Does a financial power of attorney need to be notarized?
Yes. Under 20 Pa.C.S. Section 5601, a financial power of attorney executed on or after January 1, 2015 must be signed, notarized, and witnessed by two adults.
Does a healthcare power of attorney need to be notarized?
No. A healthcare power of attorney requires two adult witnesses but does not require notarization under 20 Pa.C.S. Chapter 54.
When does a healthcare agent’s authority begin?
By default, a healthcare agent’s authority begins once your attending physician determines you lack the capacity to make your own healthcare decisions, unless the document grants the agent authority to act immediately.
Can I revoke a power of attorney after signing it?
Yes. A principal of sound mind may revoke either document at any time through a signed, written revocation.
What happens if I become incapacitated without either document?
Your family may need to petition the court for guardianship, which is a longer and more expensive process than executing a power of attorney in advance.
If you want to put a financial or healthcare power of attorney in place, or update documents you signed years ago, contact Sager & Sager Associates to schedule a consultation with our Pottstown estate planning team.