Illinois Power of Attorney Requirements: Types, Limitations, and Requirements (2023)

A legal document called a Power of Attorney (POA) can help you manage financial and health matters if you are not present to sign documents or become incapacitated. The Power of Attorney is the linchpin of estate planning.

POA is typically used by those who cannotmanage their affairs. This circumstance is usually due to illness, old age, disability or simply a long absence. In the event that you are unable to make financial or health decisions, POA assigns responsibility to a trusted individual. Read on to learn more about the ins and outs of this legal regime.

A legal document called a Power of Attorney (POA) can help handle financial and health matters if you are not present to sign documents or become incapacitated. The Power of Attorney is the linchpin of estate planning.

What is a Power of Attorney?

POA is a legal document that gives someone the authority to represent another person in financial and medical matters. The agreement always involves two parties:

The agent.Agents represent another person in predetermined legal decisions. On some forms, they are listed as "Authorised Agents".
There Rector.Clients sign POA forms so their representatives can represent them.

What an agent can and cannot decide for the client depends on the client's approval. Different forms grant different degrees of authority for different periods of time. The agreement may contain clauses about when the powers come into effect and when they end. Therefore, no two agreements have the exact same scope.

Types of Powers of Attorney for Illinois

Types of POAs in Illinois include:

Enduring Power of Attorney
General Power of Attorney
Limited Power of Attorney
Minor Power of Attorney
Financially
Medical Power of Attorney
tax authority
power of attorney for the vehicle

Let's explore the different POA forms:

(Video) The 4 Types of Powers of Attorney - EXPLAINED

Financial Power of Attorney in Illinois

Financial POAs are among the most popular. In general, principals sign this form so that representatives can manage their finances in the event of illness or absence. The document lists several types of transactions. Your agent is authorized to perform all types of transactions unless you cross out those you do not want your agent to perform.

The best way to understand financial POAs and ensure you meet Illinois power of attorney requirements is to use the Illinois Statutory Short Form Power of Attorney for Property created by the Illinois legislature. You can find this form in the Illinois Compiled Statutes, Chapter 755, Article 45, Section 3-3. It includes instructions for each section of the form.

Power of Attorney for Health Services in Illinois

Healthcare POAs make medical decisions on behalf of the client. Interested principals can find this form in the Illinois Compiled Statutes, Chapter 755, Article 45, Sections 4–10. The principal and a witness must sign the form. However, no one is required to notarize a medical POA in Illinois.

Like the financial form, this form provides detailed instructions, including an explanation of who is not permitted to act as a witness. You can also swipe certain health regulations as indicated in the instructions. This limits the scope of an agent's health authority should the principal choose to limit it.

Note:The Illinois legislature recently amended the Illinois Public Health Power of Attorney form in Public Act 102-794. Beginning January 1, 2023, agents can “present an electronic device that displays an electronic copy of a completed form as proof to the health authority.” ." Prior to this change, agents required a physical copy of the health policy.

Other Types of Powers of Attorney in Illinois

Outside of health and finance, there are other types of POA. Forms that grant the agent broad powers to represent the principal in any matter are "generic" POAs. A "limited" or "special" POA restricts the agent's powers in some way. Principals can restrict agents to a single transaction, a specific type, decision, or a limited period of time.

The eight Illinois power of attorney forms include:

Permanent (statutory) power of attorney.Provides an agent with extensive legal powers and survives if the principal becomes incapacitated.
General (financial) power of attorney.Grants an agent extensive financial powers, but ends when the principal becomes incompetent.
Limited Power of Attorney.Grants limited power over certain transactions or period of time, and expires once the transaction or period ends.
Minor Power of Attorney.Appoints a representative to make decisions on behalf of a minor when their guardian is unavailable.
Medical Power of Attorney.Allows an agent to make medical decisions when you can't.
revocation of the power of attorney.Cancels a previous POA agreement.
Tax Power of Attorney (IL-2848).Lets an agent act on your behalf when filing taxes or dealing with the IRS.
Vehicle Power of Attorney.Grants agents the power to register and nominate vehicles.

Among these eight shapes, there is no best option. Instead, clients should find the agreement that best suits their needs. Even if they change their minds, principals can change their agreements later.

(Video) Power of Attorney Explained

What is the difference between a permanent and a regular power of attorney?

While permanent power of attorney arrangements survive even after the principal is incapacitated, this is not the case with a regular or consecutive power of attorney. There is a field on the Illinois forms that you can fill out when the POA goes into effect. Two standard provisions help explain this distinction:

For a Permanent Power of Attorney in Illinois:"This power of attorney is effective immediately and is not affected by the subsequent incapacity of the principal."
For a regular Illinois Power of Attorney:"This power of attorney comes into effect if the principal is incapacitated, as determined by a written certificate of incapacity from two physicians who have examined the principal."

Because of this distinction, regular POAs do not grant agents power over medical emergencies anddecisions at the end of life. In such cases, however, a long-lived POA provides this performance.

Why is a Power of Attorney important and necessary?

POA forms allow an agent to legally administer a principal's property, medical, and financial decisions. It is crucial that this is not in the interest of the agent. A power of attorney allows principals to move forward with estate planning decisions. The agent can continue to protect his interests even if a client is ill, absent or not willing to act.

POA forms serve a similar purposefunction on wills. Wills often contain provisions relating to health and finances up to and beyond a person's death. In contrast, a power of attorney contains provisions that apply during the lifetime of the principal. Both documents help to assert your best interests in difficult times.

Power of Attorney Limitations

A power of attorney grants a wide range of legal powers and responsibilities. However, even someone with a persistent POA cannot do anything on behalf of the principal. At the same time, principals cannot control all of their agents' decisions. POA agreements are subject to the following restrictions:

Agents have no direct supervision other than the principal
Agents can end up acting in ways the principal doesn't want them to
Third parties like a bank may not accept POA to avoid fraud or abuse
Agents cannot change a principal's will
Clients must write their agreement in the forms required by law
Agents can onlytransfer their POAtransfer to another person with the consent of the school principal

Illinois also imposes restrictions on agents. A person can only represent a client if he:

Are over 18 years old
Demonstrate ability to make financial, property, and medical decisions in your location
They are in their right mind and understand the legal ramifications of their agreement

Illinois Power of Attorney Requirements

A power of attorney requires more than just mutual consent. Even if an agent and principal make a deal, the state will only recognize a POA if it meets the legal criteria. Basic requirements for a Power of Attorney in Illinois include:

The form must identify the representative and their powers
The client must duly sign the agreement
Certain forms require the client to confirm their signature in front of a witness or notary (the notary cannot be the witness at the same time).

Clients must demonstrate common sense when signing their agreement
Inclusion of legal language

Note:For additional POA laws—both financial and medical—see Illinois Compiled Statutes, Chapter 755, Article 45, known as the Illinois Power of Attorney Act.

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How to Obtain a Power of Attorney in Illinois

While a Power of Attorney takes time to understand, executing an agreement is straightforward. Illinois residents can sign a POA agreement by following the steps below:

Choose your agent and discuss financial, medical or general responsibilities
Choose the right POA type according to your needs
Write the POA agreement on the legal forms
Make sure the document complies with state laws
Sign the POA form and execute it in accordance with Illinois law
Keep your agreement in a safe place like a safe deposit box
Update your POA if necessary

When does the POA come into effect and end?

A power of attorney can take effect in two ways:

Immediately after the client and agents have executed the agreement
If the criteria set out in the agreement are met

A form of proxy is void if:

The headmaster dies
The client revokes its POA agreement
A court declares the agreement invalid
Agent is unavailable (ill, in prison, unwilling to perform duties, etc.)

Why use the statutory forms?

Some clients use commercial orDo-it-yourself power of attorney forms. In most cases, this damages the credibility of your agreement. You can create a secure POA in Illinois that meets all legal requirements using the state's official forms. These legal forms also increase the likelihood that the people and organizations meeting your representative will accept them.

The statutory forms can be found here:

In stationery stores that sell legal forms
With an estate planning attorney
On government websites or in government offices

Frequently asked questions about POA

After learning the basics of POA, many legal questions remain. The most popular include:

Can two people share a power of attorney?

Principals can name several authorized persons on one authorization form. For example, some principals give their siblings or children permanent POAs so at least one can help in an emergency.

As a general rule, clients should only offer POAs to one person. When two agents conflict, neither of them can make decisions on behalf of the principal. For this reason, most principals leave themselves to a trusted agent.

(Video) Know this before you sign a Power of Attorney

Who decides without a power of attorney?

Without a POA, the state can appoint a third party to help a principal who is ill. In financial administration of the estate, probate courts may appoint a guardian or conservator to administer an individual's property. In this case, family members can apply for access to the principal's finances.

When someone becomes medically incapacitated, family members make decisions instead of a representative. Medical staff will act in the best interest of the patient when the hospital is unable to contact family members. If the patient left a will, it provides a roadmap for the medical staff.

Does a power of attorney grant ownership of a property?

No, agents do not own the property of their client. Instead, agents can make predetermined financial decisions about the client's property when the situation calls for it. An agent may not transfer or sell any assets without written consent.

How much does a power of attorney cost?

Obtaining and filing a POA form costs little to no money in Illinois. However, hiring a lawyer to review your form will add to the cost. Some attorneys charge $100 to $300 for a standard form review. More complex arrangements can cost far more.

Can you revoke a power of attorney?

Principals can revoke an agent's POA at any time, as long as they show common sense. Clients can revoke this privilege for any reason.

How to sign a power of attorney

An agent's signature does not represent the principal unless it conforms to a specific format. To sign for your principal, write their full name, then the word "from" and finally sign your name. For example, if Eric Burress is Jessica Kane's POA, Eric would sign the documents: "Jessica Kane from Eric Burress". .

Secure your health and finances with POA

You can never guarantee what the future holds, but estate planning allows people to take precautions and make decisions in their best interests while they still can. Although wills apply after a person's death, a power of attorney provides the same benefits long before that time. It also offers enough flexibility to choose the perfect shape for your needs.

By learning about the rights and responsibilities associated with issuing a Power of Attorney in Illinois, you will be better prepared to grant a Power of Attorney or act as a Power of Attorney on behalf of someone else. From there, you can decide if a power of attorney is right for you. Make sure your loved ones and belongings are protected.