Agent Duties Under Power of Attorney in Pennsylvania

Being named as a power of attorney agent in Pennsylvania is not an honor — it is a legal obligation. The moment you sign the statutory acknowledgment page required by 20 Pa. C.S. § 5601(d), you take on enforceable fiduciary duties. Violating those duties can result in personal liability, court-ordered surcharges, and criminal prosecution.

Here is exactly what Pennsylvania law requires of you as an agent.

The Statutory Acknowledgment

Before you can perform any act under the POA, you must sign the agent's acknowledgment page and attach it to the POA document. By signing, you confirm that you will:

• Act in accordance with the principal's reasonable expectations, to the extent you know them
• Act in the principal's best interest when their expectations are unknown
• Act in good faith
• Act only within the scope of authority granted in the POA

This is not a formality. If you act without signing the acknowledgment first, your actions may be voidable, and you may face personal liability for any resulting harm.

Core Fiduciary Duties

Under 20 Pa. C.S. § 5601.3, your duties as an agent include:

Duty of loyalty. Every decision you make must benefit the principal, not yourself. You cannot use the principal's assets for your own purposes, lend the principal's money to yourself, or direct the principal's business to companies you own.

Duty to keep assets separate. You must never commingle the principal's funds with your own. Open a separate bank account in the principal's name for managing their finances. Do not deposit the principal's Social Security checks into your personal account, even temporarily.

Duty of care. You must exercise reasonable caution and prudence in managing the principal's affairs. This does not mean you need to be a financial expert — it means you must act as a reasonable person would when handling someone else's money and property.

Duty to keep records. You must maintain complete and accurate records of every transaction — all receipts, payments, transfers, and account statements. If anyone (the principal, a family member, or a court) requests an accounting, you must be able to produce a full record of what you did with the principal's assets.

Conflict-of-Interest Restrictions

Under 20 Pa. C.S. § 5601.4(b), if you are not an ancestor, spouse, or descendant of the principal, you are prohibited from using the POA to transfer the principal's property to yourself, your creditors, or your estate — unless the POA explicitly permits it.

Even if you are a family member, self-dealing transactions (buying the principal's car at below-market value, for example) are heavily scrutinized and can be challenged in Orphans' Court.

What Happens If You Breach Your Duties

Family members, co-agents, or other interested parties can petition the Orphans' Court to:

• Compel an accounting: Force you to produce complete financial records of all transactions
• Surcharge you personally: Order you to repay any funds you misused, lost through negligence, or failed to account for
• Remove you as agent: Revoke your authority and appoint a replacement
• Report abuse: Under the Older Adults Protective Services Act (OAPSA), financial institutions, healthcare providers, and family members can report suspected abuse to the local Area Agency on Aging, triggering a protective investigation

Criminal charges — theft, fraud, forgery, or exploitation of an elderly person — are also possible for serious breaches.

Practical Tips for New Agents

Open a dedicated bank account in the principal's name and manage all their finances through it. This creates a clean paper trail.

Keep every receipt. Digital photos of receipts stored in a dedicated folder are fine. The point is documentation.

Do not make gifts unless the POA explicitly grants gifting authority. Even if the principal "would have wanted" you to give money to a grandchild, you cannot do it without specific hot-power authorization.

Communicate with family members. Transparency is your best protection against accusations of abuse. If siblings are involved, consider providing quarterly summaries of income, expenses, and account balances.

Know when to get help. Complex tax filings, real estate transactions, and Medicaid planning often require a CPA or attorney. Using the principal's funds to pay for professional advice that benefits the principal is appropriate and expected.

Be Prepared Before You Act

The Pennsylvania Power of Attorney Kit includes a document distribution tracker and asset inventory worksheet that help agents organize their responsibilities from day one — before the first bank visit or bill payment.

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