Pennsylvania Power of Attorney Agent Duties: What an Agent Must Do

Accepting appointment as an agent under a Pennsylvania power of attorney creates legal duties. The agent is not simply free to manage the principal’s property as the agent sees fit. Pennsylvania law requires the agent to act within the authority granted by the document and for the principal’s benefit.

What are the agent’s basic duties?

Under 20 Pa.C.S. § 5601.3, an agent who accepts appointment must act in accordance with the principal’s reasonable expectations to the extent actually known, otherwise in the principal’s best interest, act in good faith, and act only within the scope of authority granted by the power of attorney.

Does the agent have fiduciary responsibilities?

Yes. Except as otherwise provided in the power of attorney, Pennsylvania law imposes additional duties that include acting loyally for the principal’s benefit, avoiding conflicts that impair impartial decision-making, exercising appropriate care and diligence, and keeping records of receipts, disbursements and transactions.

Must the agent keep funds separate?

As a general rule, the agent should keep the agent’s funds separate from the principal’s funds. Pennsylvania law recognizes limited exceptions, including certain preexisting arrangements and specified circumstances involving a spouse. Good recordkeeping is important even when an exception applies.

What records should an agent maintain?

An agent should maintain organized records showing money received, expenses paid, transfers made, accounts accessed and other transactions undertaken for the principal. Section 5601.3 also provides circumstances in which the agent may be required to disclose those records, including requests by the principal, certain fiduciaries or governmental authorities, and after death by the personal representative or successor in interest.

Must an agent preserve the principal’s estate plan?

Except as otherwise provided in the document, an agent must attempt to preserve the principal’s estate plan to the extent actually known when doing so is consistent with the principal’s best interest. Relevant considerations can include the nature of the property, foreseeable obligations, taxes and eligibility for public benefits.

Can an agent make gifts or change beneficiaries?

Some powers require specific authorization. Under 20 Pa.C.S. § 5601.4, authority involving matters such as gifts, survivorship rights, beneficiary designations, certain trusts, delegations and disclaimers must satisfy special statutory requirements. An agent should not assume that a broad general clause automatically authorizes every estate-planning transaction.

What can happen if an agent breaches a duty?

The consequences depend on the conduct and resulting harm. A dispute can lead to demands for records, court proceedings, restoration of property, surcharge or other remedies. Because transactions involving family members, gifts, jointly held property and beneficiary changes often receive close scrutiny, agents should document the authority and purpose for significant decisions.

Does an agent have to act just because the power of attorney names the agent?

No. Pennsylvania’s statutory notice explains that appointment does not itself impose a duty to exercise the granted powers. But once an agent accepts appointment and acts, the statutory duties apply. Pennsylvania law also requires an agent to execute the statutory acknowledgment before the agent has authority to act under a power of attorney subject to those requirements.

How quickly must an agent provide records after a proper request?

Section 5601.3 provides a specific response framework. When disclosure is properly requested by a person or entity authorized under the statute, the agent generally must comply within 30 days or provide a written or other record explaining why additional time is needed. If additional time is properly invoked, the statute provides an additional 30 days to comply.

Practical steps for an agent before a major transaction

• read the complete power of attorney, including limitations and special instructions;
• confirm that the proposed transaction is actually within the granted authority;
• determine whether the transaction is one that requires express authority under § 5601.4;
• identify any personal benefit or conflict before acting;
• retain statements, invoices, contracts and other supporting records; and
• document why a significant transaction serves the principal’s objectives or best interest.

Frequently Asked Questions About Pennsylvania Power of Attorney Duties

Can an agent pay the principal’s bills and expenses?

Usually, if the power of attorney grants the necessary authority. The agent should document the payment, retain supporting records and be able to explain how the expense relates to the principal’s affairs.

Can an agent transfer the principal’s property to the agent?

Self-interested transfers can create significant fiduciary and statutory issues. Whether such a transfer is permitted depends on the document, the authority granted, the circumstances and Pennsylvania law. An agent should not assume that general authority permits a transaction that benefits the agent personally.

What happens to the agent’s authority when the principal dies?

A power of attorney generally does not substitute for estate administration after death. Once the principal dies, the personal representative appointed through the estate process generally becomes responsible for administering probate assets.

Related Pennsylvania Estate Resources

• Pennsylvania Spousal Elective Share
• How Long Does Probate Take in Pennsylvania?
• Pennsylvania Inheritance Tax

Talk with a Pennsylvania estate-planning attorney

ZwickLaw advises principals, agents, executors and families concerning estate planning and powers of attorney, estate administration and related fiduciary disputes. Contact ZwickLaw to discuss a particular document or transaction.

This article provides general information and is not legal advice. The duties and authority of an agent depend on the language of the power of attorney and current Pennsylvania law.