Rocco Cozza • August 20, 2024

Estate Planning In Pennsylvania: Essential Tips

Discover essential tips for estate planning in Pennsylvania. We guide you through wills, trusts, and probate to protect your assets and secure your family's future.

In Pennsylvania, a Power of Attorney (POA) lets someone, the principal, give legal power to another, the agent. This person can then act on their behalf in many areas. This includes selling property or making important healthcare choices. It's key that the person making the POA is mentally fit for it to be legal.

The POA can start right away or wait for a certain event. Revoking a POA is easy; you just need to tell the agent and others who need to know. If the person making the POA dies or gets a divorce and their spouse was the agent, the POA ends automatically.

For a POA to be valid in Pennsylvania, it must meet certain legal standards. It also needs specific language. This makes sure the document is good to go.

Key Takeaways

Most Powers of Attorney in Pennsylvania must include specific language to be valid.
A POA can designate more than one person as an agent and can include a successor agent.
POAs can be specified to take effect at a future date or upon a designated event.
A Power of Attorney can be revoked by a written notice or expiration date.
Automatic termination of a POA occurs upon the principal’s death or if a divorce is filed, with the spouse as an agent.
In Pennsylvania, a POA is typically durable unless explicitly stated otherwise.
Meeting specific legal and witness requirements is essential for a POA in Pennsylvania.

Understanding Power of Attorney in Pennsylvania

In Pennsylvania, a Power of Attorney is a legal document. It lets an agent make decisions for the principal. The document must follow state laws closely. This ensures the agent has the right authority.

What is a Power of Attorney?

A Power of Attorney (POA) is a key legal document in Pennsylvania. It lets a principal choose someone to make decisions for them. This can include financial, legal, and healthcare decisions. The POA must be written, dated, signed, and witnessed by two people and a notary public to be valid.

There are different types of Power of Attorney in Pennsylvania:

General Power of Attorney: Gives the agent wide authority over the principal's affairs.
Limited Power of Attorney: Allows the agent to do specific tasks or for a certain time.
Springing Power of Attorney: Activates when a specific event happens, like the principal becoming incapacitated.
Durable Power of Attorney: Stays valid even if the principal can't make decisions, managing their affairs.

Who Can Be an Agent?

Choosing the right agent for a Power of Attorney in Pennsylvania is crucial. The principal should pick someone they trust who knows their values. The agent must act with the principal's best interests in mind. The document should state how agents will work together.

Agents have many responsibilities. They need to:

Keep track of financial dealings.
Act honestly and put the principal's interests first.
Work with healthcare decision-makers and others.
Follow the principal's wishes, avoiding personal interests.

The agent can only act if the principal is mentally able. If the principal loses mental capacity, the POA's terms decide if it's still valid. A Durable Power of Attorney in Pennsylvania ensures the agent can continue to act even if the principal's mental abilities decline.

Overall, Pennsylvania's legal documents and laws protect the principal and give the agent the power to manage the principal's affairs well.

Types of Power of Attorney in Pennsylvania

In Pennsylvania, there are several types of Power of Attorney (POA), each with its own purpose. Knowing about these can help you make smart choices for your legal and financial matters.

Durable vs. Nondurable Power of Attorney

A Durable power of attorney Pennsylvania stays valid even if the person giving it can't make decisions anymore. This is different from a nondurable Power of Attorney, which ends if the person can't make decisions. Since December 16, 1992, all POAs in Pennsylvania are seen as durable unless they say otherwise.

Medical Power of Attorney

A Medical power of attorney Pennsylvania lets someone make health care choices for the person giving it. They can agree to treatments and look at medical records, following HIPAA rules. This kind of POA is key to making sure the person's health wishes are followed when they can't speak for themselves.

Financial Power of Attorney

A Financial power of attorney Pennsylvania lets someone handle the financial matters of the person giving it. They can manage bank accounts, sign checks, and make investment choices. It's important for keeping the person's finances stable when they can't manage them themselves.

Springing Power of Attorney

A Springing Power of Attorney only kicks in under certain conditions, usually when the person giving it can't make decisions anymore. The person can set rules for when this POA takes effect, giving flexibility and protection.

Understanding these Power of Attorney types helps you plan for different situations. It ensures your legal, health care, and financial choices are made as you wish in Pennsylvania.

Legal Requirements for Power of Attorney in Pennsylvania

It's key to know the legal rules for a power of attorney in Pennsylvania. Act 95 changed Chapter 56 of Title 20 of the Pennsylvania Consolidated Statutes. These rules protect the person giving the power and explain the agent's duties.

Signing and Notarization

Since January 1, 2015, a power of attorney in Pennsylvania needs a notary and two adult witnesses. Notarization makes sure the document is real and the person giving the power meant to give it to the agent. If someone can't sign, another person can do it for them, but only with two witnesses there.

Signatures must be dated, and everyone signing must be over 18. These steps are part of the legal rules for power of attorney in Pennsylvania.

Witness Requirements

The two witnesses are key to making a power of attorney valid. They can't be the agent or anyone signing for the principal. This rule stops any possible conflicts of interest.

The document must have certain notices and acknowledgments. This includes a notice for the principal and an acknowledgment by the agent. These things started being needed on January 1, 2015. They show how important it is to follow the legal rules for power of attorney in Pennsylvania.

How to Create a Power of Attorney in Pennsylvania

Creating a Power of Attorney (POA) in Pennsylvania lets a trusted person manage your legal and financial matters for you. This is important if you can't make decisions yourself. Here's how to make a POA that fits your needs:

Steps to Drafting the Document

To make a POA in Pennsylvania, follow these steps carefully:

Determine the Agent: Pick someone you trust to take care of your affairs. They can work alone or with others.
Select the Type of POA: Choose the right kind of POA, like financial, healthcare, durable, or springing POA.
Complete the Form: Fill out the POA form correctly, making sure you include all important details.
Signature Requirements: Sign the POA in front of a notary public, as the law says.
Witnesses: Get the POA witnessed as the law demands.
Document Copies: Keep several copies of the signed and notarized POA for important people.
Inform Relevant Parties:Tell banks, healthcare providers, and others about the POA.
Avoid Common Pitfalls:Talk to a lawyer to make sure you follow the law and avoid mistakes.

By following these steps, your POA will be legal and help manage your affairs smoothly.

Professional Assistance

While you can make a POA on your own, getting Professional Assistance from experts like Cozza Law Group PLLC is a good idea. Pennsylvania's laws are complex, and there's no standard form for financial POAs. A lawyer can make sure your POA meets all legal requirements and includes the right language. Getting Professional Assistance means your document will be strong and fit your needs perfectly.

Working with a legal expert to draft your POA in Pennsylvania makes your document more effective. It also gives you peace of mind, knowing everything is done right.

Advantages of Having a Power of Attorney

Having a Power of Attorney (POA) in Pennsylvania brings many benefits, especially in estate planning. It gives you peace of mind. You know someone you trust can handle your finances and medical care if you can't.

A POA ensures your assets and healthcare choices are managed smoothly. It prevents problems and delays that might happen without an agent. By choosing your agent, you keep control over who looks after your interests. This helps avoid court-appointed guardianships that might not be what you want.

Getting a POA is easy in Pennsylvania, needing only a notary and witnesses. Many people pick a family member or friend they trust. Trust is key, especially if the agent will manage your money. But, not all POAs work out well. For example, conflicts can happen when one child is chosen over others, and not all agents are good with money.

Still, making a POA is a smart move for peace of mind and good estate planning in Pennsylvania. It protects your interests and prepares your loved ones to make important decisions without legal worries.

Conclusion

Understanding and using a Power of Attorney in Pennsylvania is key to good estate planning. It makes sure someone you trust can handle your affairs if you can't. After July 1, 2015, financial Power of Attorney documents need special "NOTICE" language to be valid.

If you don't include the Notice Page or it's not signed, your Power of Attorney might not work. Banks and real estate companies could refuse to accept it. Also, if you have a Power of Attorney from another state, Pennsylvania usually accepts it, but you must follow the law.

To cancel a Power of Attorney in Pennsylvania, you need a new document saying you want to cancel it. It must be signed and notarized. You should tell everyone who needs to know, like banks and doctors, to stop any misuse. If you're changing your POA, make a new one that clearly says it's replacing the old one.

It's best to talk to an estate planning lawyer, like ours at Cozza Law Group PLLC, for help. We can make sure everything is done right and fits your situation. This way, you can protect your legal and financial future.

Schedule a consultation now

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How Restrictive Covenants And Non-Compete Agreements Are Enforced

By Rocco Cozza • August 22, 2026

The enforceability of restrictive covenants and non-compete agreements depends on various factors, including how and when the employee/contractor initially signed the document. A company or employer may find it easier to enforce these agreements if they work with business law attorneys in Pittsburgh during the initial drafting and signing processes. If a company can steer clear of common mistakes from the very beginning, it can protect its competitiveness and avoid issues caused by former employees/contractors. Pennsylvania Only Enforces Non-Compete Agreements That Meet Five Requirements While Pennsylvania does not have a clear statute governing non-compete agreements, past cases have established a three-part test for their enforceability. First, a non-compete agreement must clearly define a timeframe in order to be enforceable. In other words, it must have an expiry date. You cannot stop an employee or contractor from competing indefinitely. Case law also suggests that non-compete agreements with the strongest enforceability are only valid for a few years (and not decades). A Pennsylvania court is also likely to reject a non-compete agreement with an ill-defined scope. In other words, the contract must describe exactly what the employee or contractor is prohibited from doing. The scope must also be reasonable, meaning you can only prevent employees from joining clear competitors. If a company is only distantly related to your industry or field, a non-compete probably can’t prevent your former employee from joining that organization. Scope also encompasses the type of company information that the employee uses to compete in the future. You cannot stop a former employee from using their own inherent skills and knowledge to set up a competing business. The only way you can legitimately curb competition from a former employee is by limiting the way they use your company’s “confidential information.” You might be surprised to learn that your former employees have every right to use company information that you consider to be confidential. As long as that information is publicly available, your employees can use it freely. This includes price lists, your suppliers' contact information, and general business practices well-known in your industry. One example of “confidential information” in this context is a list of your customers, complete with their email addresses and telephone numbers. Although this information might be publicly available, a normal person would not be able to recreate the finished list without spending years building a business (as you have). Intellectual property is another example of protected, confidential business information. If you have gone through the trouble of obtaining a patent or a copyright, your employee has no right to steal this information and use it to set up a competing business. The same logic applies to “trade secrets,” which may include confidential formulas or recipes. That said, it is important to remember that these violations are governed by intellectual property law, and not necessarily non-compete agreements. Non-compete agreements in Pennsylvania must also clearly define their geographical “reach.” You can only prevent an employee from competing with you in your geographical area, such as the City of Pittsburgh or Allegheny County. Even if your employee signs a non-compete agreement, they could theoretically travel to another state or country before starting a competing business. Finally, companies in Pennsylvania generally need to offer employees or contractors something in return for signing non-compete agreements. If the penalties for violating the agreement represent the “stick,” then the reward represents the “carrot.” In business law, this reward is called “consideration.” A common type of consideration is a job offer. With the job offer on the table, there is a clear reward for signing the non-compete agreement. On the other hand, the potential employee could always walk away from the job offer without excessive penalties. Another type of consideration is career advancement. This might be a raise or a promotion. An employee may decide to sign a non-compete agreement in order to access these career benefits. If they reject the offer, they would presumably keep their current position in the company without any other consequences. Pennsylvania courts may deem unenforceable a non-compete agreement that lacks these promised rewards. In the eyes of the court, an employee faces a difficult situation if they could lose their job by not signing a non-compete agreement. As with all contracts, duress or undue influence can make non-compete agreements unenforceable. Penalties Help Enforce Valid Non-Compete Agreements Assuming a non-compete agreement is valid, what exactly stops an employee from violating it? Without effective penalties, a non-compete agreement is useless. You can enforce your non-compete agreements with “injunctions.” These are court orders that require your former employee or contractor to immediately stop working for the competing business. If they have set up their own business, a court order could force them to shut down operations. Penalties may also include damages. The court can order the competing employee or contractor to pay compensation for your losses. For example, an employee might have stolen all of your customers by offering the same services for a lower price. In this situation, you could recover all of the profit you would have earned if those customers had remained loyal. Negotiation Is Often the First Step of Enforcement While taking your former employee or contractor to court can lead to positive results, most parties attempt to resolve their disputes through negotiation first. Indeed, mandatory “arbitration clauses” are often built into non-compete agreements. A business law attorney can represent your best interests during these negotiations, ensuring positive outcomes without an expensive, time-consuming trial. Can a Business Law Attorney in Pittsburgh Help Me? A b usiness law attorney in Pittsburgh may be able to help if you are serious about making your restrictive covenants and non-compete agreements as enforceable as possible. Legal assistance with drafting and negotiating these agreements from the outset may improve their enforceability if a dispute arises later. That said, lawyers can also help resolve disputes over restrictive covenants signed long in the past. To explore this topic further, consider contacting Cozza Law Group, PLLC at (412) 790-2789. You can also find us online .

Understanding Shareholder Disputes and How They are Resolved

By Rocco Cozza • June 8, 2026

Shareholders set corporations apart from other types of businesses, and they often help companies achieve considerable levels of success. On the other hand, executives and directors often forget that each shareholder is a part owner. With so many owners, it is easy to see how complex shareholder disputes can become. The first step is to understand why and how these shareholder disputes arise. The second step is to resolve the dispute, potentially with guidance from an experienced business litigation attorney in Pennsylvania . Shareholder Disputes Arise Because of Shareholder Rights To understand shareholder disputes, you first have to understand shareholder rights. Common shareholders have voting privileges, which means they can control the trajectory of the company. Although some shareholders never bother to vote, others take these rights very seriously. The more shares you have, the more power you have to control major decisions. Shareholders also have the right to profit from the success of a company. Because of this, they have a financial incentive to oversee the company’s trajectory. If the company leadership starts to make mistakes or intentionally act against the interests of the shareholders, disputes naturally arise. Finally, shareholders rely on the accuracy of records and corporate books to make their investment decisions. For example, they might choose to sell or hold their stocks depending on the published earnings of a company. If these records are inaccurate or intentionally altered, the shareholders may make poor investment choices as a result. Now that you understand shareholder rights, it is easy to see how shareholder disputes might arise. Shareholders might sue if they feel that the company is making major decisions without bothering to hold votes. They might also sue if they feel that the leadership is acting against their best interests. Another type of lawsuit might involve shareholders suing a company for inflating their earnings and releasing inaccurate data. Shareholder Disputes Often Begin With Alternative Dispute Resolution Most lawsuits, including shareholder disputes, go through a process of alternative dispute resolution (ADR) before parties actually proceed to the courtroom. ADR may involve mediation or arbitration, and it takes the form of private negotiations. The shareholders may select legal counsel to negotiate on their behalf, as it would be impractical for thousands of individuals to sit at the negotiation table. In other situations, an individual shareholder might file a lawsuit on their own. In this situation, that individual might be present at the negotiation table alongside their legal counsel. ADR often serves everyone’s best interests, helping to resolve disputes without resorting to expensive and time-consuming litigation. Public trials are not good for business, and shareholders might be just as willing to resolve these issues in private as the executive suite. Arbitration clauses are often “built in” to the corporate bylaws or charter. In other words, parties may have no choice but to attempt mediation/arbitration before proceeding to a trial. That said, parties are under no obligation to successfully complete the arbitration process. One party could refuse to negotiate, and a trial would subsequently become inevitable. What are Some Common Types of Shareholder Disputes? Shareholder disputes may take various forms. All of these lawsuits fall into four main categories, however. An individual shareholder might file a direct lawsuit against the company. Another type of lawsuit might be a “derivative suit,” which involves the shareholders suing on behalf of the corporation. This type of lawsuit often targets a specific bad actor within the company, such as a self-dealing CEO. Class actions are also relatively common. In this type of lawsuit, numerous shareholders join forces to file a single lawsuit against the corporation, often under federal securities law. Finally, a dispute might take the form of an “appraisal proceeding,” which focuses on whether the company has received a fair valuation before a merger. How Does Pennsylvania Law Affect Shareholder Disputes? Pennsylvania law is quite deferential to the board of directors, granting it considerable control and authority. A common source of conflict in a corporation is the contrast between the “democracy” of the shareholders and the authority of the board of directors. Pennsylvania tilts the scales in favor of the board. First, Pennsylvania requires a shareholder to make a written demand to the board before they can file a derivative lawsuit. The board can then appoint a “Special Litigation Committee” to investigate the shareholders' claims and demands. If the committee determines that a lawsuit would go against the best interests of the company, courts in Pennsylvania may not allow it to continue. It is difficult to circumvent these requirements for derivative lawsuits in the Keystone State because of strict limits on direct lawsuits. Finally, Pennsylvania has no rule that states a board must place its shareholders’ interests above those of other relevant parties. These parties might include employees, customers, suppliers, and even the greater community or environment. This is not the same in other jurisdictions, making the Keystone State a “board-friendly” state that repels takeovers. In fact, it is considered by many to be the most management-friendly state in the country and one of the toughest places for shareholder plaintiffs to sue. While this is good news for boards facing shareholder lawsuits, the Keystone State’s protections are not infinite. Effective legal representation is necessary to take advantage of the jurisdiction’s legal safeguards. On the other hand, plaintiff shareholders can still achieve success in Pennsylvania, but they may need to rely on innovative, experienced business litigation lawyers in the face of strong regulatory barriers. Contact Cozza Law Group PLLC to Learn More About Shareholder Disputes While online research can provide plenty of insights into shareholder disputes, each case is slightly different. Given the varied nature of shareholder disputes, it may help to discuss your specific circumstances with a business litigation attorney in Pennsylvania . Cozza Law Group PLLC serves enterprises of all sizes, offering a fractional counsel model that provides legal guidance that fits your company’s unique needs. Continue this dialogue by contacting us at 412-453-8673 or visiting us online .