5 Tips for Choosing the Best Power of Attorney

Contact us for help in choosing the best power of attorney. We serve Berks, Lehigh, Northampton, Bucks, Montgomery, Philadelphia, Chester, Delaware, Lancaster, Lebanon, Dauphin, Schuylkill, York, Carbon, Luzerne, Monroe, Columbia and Northumberland counties.

An integral part of Estate Planning is designating an agent by means of a power of attorney (POA). Many people choose their spouse, a family member, or a close friend, but you can choose anyone. Considering you are entrusting this person or persons with the power to make financial and/or medical decisions on your behalf, you want to ensure that you choose wisely.

What is a Power of Attorney?

A power of attorney (POA) is a legal document that designates someone to act on your behalf. The POA is a written document that allows you (the “principal”) to give someone else (your “agent”) legal authority to act on your behalf in certain matters. You must choose who will act as your agent and specify what powers you are giving to your agent (what your agent is allowed to do for you). You may select any competent adult to act as your agent. The authority that a Power of Attorney gives to your agent can be for limited circumstances like the sale of real estate or broad for general financial and health care decisions on your behalf.

An agent designated under a financial power of attorney is authorized to handle your financial or business matters, such as paying bills, making deposits, etc. An agent designated under a healthcare power of attorney is authorized to make medical decisions in certain circumstances such as the authorization of medical or surgical procedures, admission to a medical facility, etc. You can name one person to serve as agent under your financial and healthcare POA or choose one person to be your financial POA and a different person to be your healthcare POA.

You also have the option of naming two or more people as co-agents or successor co-agents. Co-agents are supposed to work together in the principal's best interest which sometimes causes conflict. A successor agent can step in if the primary agent is unable or unwilling to serve.

In Pennsylvania, there are three main types of financial POAs:

1. Durable Power of Attorney refers to a POA that remains in effect until the principal's death or until the POA is revoked. It does not need to be renewed. In PA, a POA is durable unless it specifically states otherwise.

2. Limited Power of Attorney or Simple POA is effective for a short time based on the conditions of the POA document. For example, you may authorize a Limited Power of Attorney to manage your finances while you are out of the country.

3. Springing Power of Attorney only becomes effective when a specific event occurs. For example, a springing POA may be triggered if the principal becomes physically incapacitated.

If you do not designate a POA and something happens to you, the court upon petition may appoint someone to handle your medical and/or financial decisions. However, that process can take weeks to accomplish and may prove expensive. Therefore, designating your own POA provides peace of mind that if something were to happen to you, someone would 1) know your wishes, 2) have your best interests in mind, and 3) have the authority to make financial and/or medical decisions on your behalf.

How do You Choose the Best Power of Attorney?

Being an agent under a POA carries much responsibility. It can be stressful, time-consuming, and emotionally draining. The best agent may not be the person who is closest to you.

When considering the best person or persons to be your financial and/or medical POA agent, consider the following characteristics:

· Understands and is willing to take on the responsibility of an agent

· Lives close to you

· You trust them to follow your wishes and act in your best interest

· Assertive when needed

· Good communicator - even under pressure

· Organized and detail-oriented

· Has some understanding of finances and/or medical processes

· Ability to collaborate with attorneys, doctors, accountants, etc.

Before naming an agent, have a conversation with the person or persons you are considering to discuss the duties and responsibilities and the scope of your legal and financial affairs. You need to thoroughly trust the agent you designate.

Ready to Set Up a Power of Attorney?

The estate planning attorneys at Bingaman Hess can help provide peace of mind by drafting a Power of Attorney to ensure that your financial and medical wishes are followed if something happens to you. Don't wait. Give us a call today at 610.374.8377.

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Business Succession Planning

By Mahlon Boyer • May 30, 2026

Business succession planning is an important process that helps business owners prepare for the upcoming transfer of ownership and leadership. Whether the transition involves passing the company to family members, selling to business partners or transferring ownership to outside buyers, having a clear succession plan helps reduce uncertainty and protect the long-term security of the business. A careful plan can also minimize disputes, preserve business value and ensure continuity in periods of change. Planning for Business Transfer The first step in business succession planning is identifying how the business will be transferred and who will assume control. Business owners should evaluate their long-term goals, retirement plans, and the financial needs of both the company and their family members. Some owners choose to pass the business on to children or relatives who are already involved in operations. Others may transfer ownership to key employees, business partners or third party buyers. Each option has different legal, operational and financial consequences. A successful transition often takes years of preparation. Potential successors may need leadership training, operational experience and gradual increases in responsibility to ensure they are ready to effectively manage the business. Good communication with family members, partners and stakeholders is also important to avoid misinterpretations and conflict. Business owners should work with legal and financial professionals to create formal succession documents, update corporate records, and establish a realistic timeline for the transfer process. Use of Buy-Sell Agreements Buy-sell agreements are an essential part of many succession plans. These legally binding agreements specify what happens to the interest of a business owner if certain events occur, such as retirement, disability, death or voluntary departure from the company. A buy-sell agreement typically defines who may buy the shares of the departing owner, how the business interest will be valued and the terms of payment. This structure helps maintain stability and prevents ownership disputes that could disrupt operations. For businesses with multiple owners, buy-sell agreements provide understanding and protections for all parties involved. They can prevent unwanted external ownership and ensure that remaining owners retain control of the company. Funding mechanisms are also important. Many businesses use life insurance policies to fund buyouts in the event of an owner's death. This allows surviving owners or family members to complete the transfer without putting financial hardship on the business. Tax Considerations Tax planning is an important part of business succession planning. If the transfer of ownership is not well planned, the business owner and successor will face a substantial tax liability. Depending on how the transfer takes place, the owners may face capital gains, estate, or gift taxes. With good planning, these tax burdens can be reduced with trusts, step-by-step ownership transfers, family partnerships, or changing the type of business entity. Another important factor is valuation. A proper valuation of a business is important for determining tax liability and ensuring that everyone involved in the transfer is treated fairly. Business owners should regularly review their succession plans with accountants, tax advisors, and attorneys, as tax laws are often changing. Regular updates keep the plan in line with changing legislation and the business’s needs. Let Us Help You Navigate the Essentials of Business Succession Planning Don’t wait! Talk to one of the experienced estate planning attorneys at Bingaman Hess today at 610.374.8377 or contact us online. This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.