Why Your Power of Attorney Might Fail You (And What to Do About It)

A Power of Attorney is one of the most important estate planning documents a person can have. It allows someone else to step in and make legal or financial decisions on your behalf if you become incapacitated. Families often believe that once this document is signed, they are protected. The unfortunate truth is that many Powers of Attorney are ineffective, especially when they are needed most.

At Entrusted Legacy Law, we have seen firsthand how a weak or outdated Power of Attorney can leave families in crisis. When a loved one experiences a medical emergency or cognitive decline, and the document they were counting on is rejected by banks or hospitals, the result can be devastating. In many cases, the only solution at that point is to seek guardianship through the court system, which is time-consuming, stressful, and expensive.

This article will explain why many Powers of Attorney fail and what you can do to ensure your family is truly protected.

What Is a Power of Attorney and Why Does It Matter?

A Power of Attorney is a legal document that authorizes someone you trust to act on your behalf. There are two primary types:

• A Financial Power of Attorney allows someone to manage your money, pay bills, handle investments, and deal with banks or government agencies.

• A Healthcare Power of Attorney allows someone to make medical decisions if you are unable to do so yourself.

  
  

In Pennsylvania, a properly drafted Power of Attorney can help families avoid the need for guardianship proceedings if a loved one loses capacity. It gives clarity and control in a crisis.

Without it, families are left without legal authority and face unnecessary delays and court intervention.

Why Most Powers of Attorney Do Not Work

Many people assume that a Power of Attorney is a standard form or a one-size-fits-all solution. Unfortunately, this is one of the most dangerous misconceptions in estate planning. Below are the most common reasons Powers of Attorney fail in Pennsylvania.

1. The Language Is Too Generic or Vague

Many documents only contain a checklist of powers or a long paragraph full of legal terms separated by commas. While this may look comprehensive, financial institutions often reject such documents because they do not include clear and specific language for the types of transactions needed.

For example, if the document does not explicitly allow the agent to create or fund a trust, apply for government benefits, or make gifts within certain limits, the agent may be legally restricted from doing so. These limitations can block essential Medicaid planning, delay access to assets, or create legal risks for the family.

2. The Document Is Outdated

Laws, policies, and institutional standards change over time. A Power of Attorney that was drafted more than five years ago may no longer meet today’s requirements. In some cases, older documents are missing key protections or formatting required under Pennsylvania law.

Banks and financial companies often have internal policies requiring that Powers of Attorney be relatively recent or meet certain legal criteria. If the document is outdated, they may refuse to honor it.

3. The Document Was Not Prepared by an Elder Law Attorney

Many Powers of Attorney are created using online templates or through general practice attorneys who do not focus on estate and elder law. While well-intentioned, these documents often lack the legal detail and real-world application needed to hold up in a crisis. At Entrusted Legacy Law, we design Powers of Attorney to meet the scrutiny of hospitals, financial institutions, and government agencies. A generic document might save time up front, but it can cost your family far more later on.

4. Financial Institutions May Still Reject the Document

Even if your document contains the correct powers, formatting matters. Institutions may reject a Power of Attorney that is not properly notarized or witnessed, that uses inconsistent terminology, or that does not follow Pennsylvania’s statutory requirements.

Some financial institutions have internal legal departments that review Powers of Attorney before granting access to accounts. If your document does not meet their expectations, your agent may be denied access until legal corrections are made or until a court steps in.

5. The Agent Is Not Clearly Identified or Authorized

A good Power of Attorney should not only authorize someone to act, but should do so clearly and completely. Documents often fail to include backup agents, which can create problems if the original agent is unavailable or unwilling to serve.

The document must clearly state when the agent’s powers become effective and how incapacity is determined. If these details are missing or unclear, the Power of Attorney may be considered inactive or unenforceable.

The Cost of a Failed Power of Attorney

When a Power of Attorney is rejected, the consequences are not just administrative.

Families are left in a legal bind, unable to pay bills, access retirement funds, or make time-sensitive medical decisions. In these cases, the only legal remedy is a court-supervised guardianship or conservatorship.

Guardianship proceedings are:

• Public and often invasive

• Time-consuming, taking weeks or months to complete

• Expensive, requiring attorney fees and court costs

• Emotionally difficult for families during an already challenging time

These are exactly the outcomes a Power of Attorney is designed to prevent. However, if the document is not properly drafted, families are left with no choice.

What Makes a Power of Attorney Effective in Pennsylvania?

To avoid the risk of rejection or legal delay, a Power of Attorney should include the following:

Clear, Detailed Powers

Your document should authorize all necessary financial, legal, and healthcare decisions. This includes the ability to apply for public benefits, transfer assets, fund or amend trusts, make tax elections, and communicate with government agencies. The powers should be written clearly, not buried in legal jargon.

Modern Legal Language

The document must comply with Pennsylvania’s current statutory laws. The Pennsylvania Power of Attorney Act has been revised in recent years, and documents that pre-date those changes may not include critical language or required notices.

Specific Provisions for Elder Law and Medicaid Planning

If you or a loved one may need long-term care in the future, your Power of Attorney must include specific authorizations for Medicaid asset protection planning. Without these powers, your agent may not be able to legally protect your home or savings.

Acceptance by Financial Institutions

The document should be designed to meet institutional policies and expectations. This may include specific language related to account access, real estate transactions, or retirement assets.

Regular Updates

Even a well-drafted document can become outdated. We recommend reviewing your estate plan, including your Powers of Attorney, every three to five years, or after any major life event such as marriage, divorce, relocation, or the diagnosis of a serious illness.

When Should You Update Your Power of Attorney?

You should consider updating your Power of Attorney if:

• The document is more than three to five years old

• You have moved to or from Pennsylvania

• You have a new diagnosis or change in health

• You have changed financial institutions or retirement accounts

• Your named agent has passed away or is no longer appropriate

• You downloaded your document online or used a template

Why Work with Entrusted Legacy Law?

At Entrusted Legacy Law, we do more than create documents. We educate and empower families to make informed decisions that truly protect their loved ones. Our Power of Attorney documents are not one-size-fits-all. We take the time to understand your family’s needs, your values, and the potential risks you may face in the future.

We work with families across Pittsburgh, Philadelphia, and Erie, and we serve snowbirds who may have assets in multiple states. Our firm is heart-centered, relationship-driven, and committed to long-term planning, not quick fixes.

A Power of Attorney is only helpful if it works. If your document is too vague, outdated, or poorly written, your family may face legal obstacles at a time when they need support the most. These are preventable problems.

Now is the time to review your plan and ensure it will serve your family when it matters most.

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