Using a Power of Attorney (“POA”) could soon be a lot more complicated. New legislation was passed in Pennsylvania in an effort to minimize the opportunities for abuse perpetrated using a POA and to provide clearer guidance to those accepting an agent’s instructions under a POA. Among the many changes, there are more stringent requirements for execution (including some new requirements for commercial POA’s), more clearly defined protections for agents, and more options for one offered a POA by the agent to evaluate whether the POA should be honored. Those accepting instructions from an agent under a POA (for example banks) may request that the agent provide any of the following before following such instructions: (1) an affidavit concerning any factual matter relating to the POA, the principal, or the agent, (2) an English translation of the POA or any part not written in English, and/or (3) an opinion of counsel indicating whether the agent’s instructions are within the agent’s authority granted in the POA. Those planning to act on behalf of a principal using a POA should be aware that having the POA honored might take time and that they should allow plenty of time to have the POA evaluated before action can be taken.
