The Short Answer

In Pennsylvania, a financial power of attorney (POA) can give your agent broad authority to handle your money and property if you become incapacitated—but only to the extent the document grants those powers. Some of the most impactful powers (like gifting or changing beneficiaries) must be specifically authorized in the POA, not assumed.

What Pennsylvania Law Says

Pennsylvania’s POA law allows you (the “principal”) to authorize an “agent” to act for you in many financial areas—banking, real estate, investments, taxes, business operations, and more—depending on what you include in the document. Pennsylvania also recognizes a durable POA, meaning the agent’s authority can continue even after you become incapacitated, and you can also choose to make it effective only upon a future event (like incapacity).

The Statute

The primary law governing this issue is 20 Pa.C.S. § 5602.

This statute lists common categories of authority that a Pennsylvania financial POA can grant (for example, banking and financial transactions, real property transactions, insurance and annuities, retirement plan transactions, handling interests in estates and trusts, pursuing claims and litigation, receiving government benefits, and pursuing tax matters), depending on what the POA document says.

Just as important, Pennsylvania law requires certain “high-risk” powers to be expressly granted before an agent can use them.

20 Pa.C.S. § 5601.4 provides that an agent may take certain actions only if the POA expressly grants that authority—such as making gifts, creating or changing survivorship rights, changing beneficiary designations, disclaiming property, and (in many situations) accessing the content of electronic communications.

Why You Should Speak with an Attorney

While the statutes provide the general framework, the real risk is that a POA that is “too broad,” “too narrow,” or unclear can create serious financial and family problems when you need help the most. Legal outcomes often depend on:

• Strict Limits on Certain Powers: Pennsylvania requires explicit language for major actions like gifting or changing beneficiaries. If the POA is missing the right language, your agent may be blocked when urgent planning is needed—or may overstep and trigger disputes. See 20 Pa.C.S. § 5601.4.
• Burden of Proof and Accountability: Agents have legal duties (good faith, acting within authority, recordkeeping, and acting in your best interest when your expectations aren’t known). Violations can lead to court involvement and potential liability. See 20 Pa.C.S. § 5601.3.
• Incapacity and Guardianship Overlap: If a court later appoints a guardian of your estate, the court can determine whether (and to what extent) your durable POA remains in effect, and the agent may become accountable to the guardian. See 20 Pa.C.S. § 5604.

Because a financial POA can allow someone to sell property, move money, and reshape parts of an estate plan, it should be drafted and reviewed carefully. If you want your agent to have (or not have) powers like gifting, beneficiary changes, or survivorship changes, an attorney can tailor the document to your goals and reduce the risk of future disputes.

If you’d like more Pennsylvania-specific background, you may also find these helpful: choosing a health care agent and financial POA in Pennsylvania and whether a POA can change beneficiaries in Pennsylvania.

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.