Powers of Attorney/Attorney-in-Fact
Durable Powers of Attorney grant to another person, called the "Attorney-in-Fact", the legal authority to perform on behalf of the person creating the power, called the "principal", the activities and duties which are set forth in the Durable Power of Attorney. A "Durable" Power of Attorney simply means that the Power of Attorney will not be voided or limited by the disability or incapacity of the principal; but will continue in full force and effect upon the incapacity or disability of the principal.

Under a typical Durable Power of Attorney, the Attorney-in-Fact has the authority to act in all areas of the principal's affairs, including buying and selling property, continuing a family business, purchasing or canceling life insurance, and establishing trusts for the benefit of the principal. Multiple individuals and/or a corporate fiduciary may serve as Co-Attorneys-in-Fact to provide more consistent decision-making or to assure the availability of an Attorney-in-Fact at all times.

Community Trust Company will accept appointment as Attorney-in-Fact under a Durable Power of Attorney for many of our clients. We can assist you on the appropriateness of a Durable Power of Attorney, but we urge you to seek your attorney's advice on the exact nature and content of the Power of Attorney. We recommend that your Power of Attorney specifically grant authority to conduct estate planning on your behalf, and authority to create revocable and irrevocable trusts or to add to an existing trust.

Living Wills/Surrogate
A Living Will (sometimes referred to as an "Advance Directive") is a document in which you express the desire that in the event you are terminally ill or in a state of permanent unconsciousness, you be allowed to die a natural death, and that your life not be prolonged by artificial, extraordinary, or heroic measures. A Living Will allows you to state in advance your wishes regarding the use of life-sustaining procedures in the event of terminal illness or injury, or a permanent state of unconsciousness.

Although Living Will laws in Pennsylvania are relatively new, the medical community is rapidly accepting the concept of a Living Will. Doctors and medical personnel, as well as the ethics review committees of various hospitals and health care institutions are honoring the desires expressed in the Living Will.Community Trust Company will accept appointment as Surrogate under a Living Will for many of our clients who do not have close family members who are able to serve as Surrogate. We can assist you with the appropriateness of a Living Will, but we urge you to seek advice on the exact nature and contents of the Living Will from your doctor and attorney.

Guardianship
Guardianship usually involves two different situations: (1) when a person is an adult and becomes incapacitated; and (2) when a person is a minor and the minor's parents (the natural guardians) die. A guardianship is a legal relationship which authorizes an individual or corporate fiduciary (commonly referred to as the "Guardian") to become a substitute decision-maker for another. A "guardian ad litem" is appointed by the court to prosecute or defend an action for a minor.

"Incapacitated person" means an adult whose ability to receive and evaluate information effectively and communicate decisions in any way is impaired to such a significant extent that he is partially or totally unable to manage his financial resources or to meet essential requirements for his physical health and safety.

Under Pennsylvania law, once an adult individual has been declared incompetent, the guardian can be appointed by the Orphans Court to handle various aspects of the incapacitated person. Under guardianship law, the status of the guardian has been divided into four parts: (1) limited guardian; (2) plenary (full) guardian; (3) personal guardian; and (4) financial guardian. As a result, an individual may now be considered legally incapacitated for purposes of finances only, without being considered legally incapacitated for purposes of their own personal care. Under a limited guardianship, the Orphans Court will significantly restrict the ability of the guardian to act only in very narrow areas to either the individual's person or their finances.

When parents die, the deceased parents in their wills can appoint a guardian. A guardian can be different from the person or institution that acts as trustee of the testamentary Trust. The guardian can care for the person while the trustee can handle the investments held by the testamentary trust.

Community Trust Company will accept appointment as guardian by the Orphans Court. We can assist the incapacitated person, their family, and their attorney on the appropriateness of guardianship, but we urge you to seek your attorney's and doctor's advice on the exact nature and level of guardianship. We recommend our early involvement in the guardianship process, as the distinctions between limited and plenary guardianship can be more clearly defined by the Orphans Court.

Questions? Click here to ask them.