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Durable Power of Attorney

Estate Planning

As of April 12,2000, Pennsylvania requires anyone executing a durable power of attorney to signa warning acknowledging that he or she is giving an agent control over his orher property.  In addition, the person appointed by the power ofattorney must now sign a notice accepting the appointment as agent, andpromising to uphold specified fiduciary duties.

The power ofattorney can be effective without the principal''s signed warning, but the burdenof proof would be on the agent if his or her actions ever were challenged.  Specifically, if the document includes the required warning anyone whosues the agent for misusing his or her control over the property must prove theagent''s misuse.  Without a signedwarning, it is the agent who must prove that he or she used the propertyappropriately.

While the firstwarning must be executed with the power of attorney, the agent can wait to signhis or her notice until he or she begins to act on behalf of the owner.  However the agent has no authority to act until he or she signs thedocument and attaches it to the power of attorney.

The new law alsochanged Pennsylvania standards for gifting by attorneys in fact.  Prior to the new law, an agent could make gifts on the owner''s behalfwithout any language in the document giving the agent this power.  Now a power of attorney must clearly permit the agent to make gifts.  It also may authorize the agent to make anatomical gifts.

Finally, if theperson signing the power of attorney cannot sign legibly because of his or herage or disability, then he or she can make any mark or direct someone else tosign on his or her behalf.  Underthese circumstances two witnesses also must sign.

None of theserequirements applies to powers of attorney dated before April 12, 2000.