Power of attorney in Illinois implies that a resident (regarded as the “principal”) of Illinois has the right to have an agent who can make decisions for them if they are debilitated.
Supported by the Illinois Power of Attorney Act, Ill. Com. Stat. 755/45, power of attorney is the right of a person to select a representative (known as an “agent”) who can make property, financial, and health decisions on their behalf.
Power of Attorney is commonly abbreviated to POA. However, there is something tricky about “power of attorney”. It is used interchangeably: to regard the authority given to a person to make decisions on behalf of another person and the document used to issue this authority. Although, there are unique situations where the agent can make decisions for the principal when they are not debilitated. This article will shed more light on these technicalities, clarify what each type of power of attorney does, itemize the requirements for power of attorney in Illinois, and provide steps to draft one.
Why Use Statutory Forms?
As a resident of Illinois, a power of attorney must be in line with the state law, i.e., using the state-recognized official document.
Creating a valid power of attorney in Illinois can be a very detailed process since you must consider the rights of both parties and what is legal. Using the proper forms and terminologies dramatically increases the likelihood that your POA will be accepted by the authority to receive it, so be sure to consult local law experts whenever possible. Staying informed and updated on this process will prepare you for a time that may need a POA, or you get appointed as one.
Most Common Types Used
An Illinois power of attorney is supposed to provide you with an added level of protection and ensure that someone you trust can help uphold your best interests. Still, you must be able to recognize the type of POA that corresponds with your needs.
Below, we will be discussing each type under Illinois law, when it’s needed, their versions, supporting laws, and their statutory forms.
Durable (Statutory) Power of Attorney
The Durable power of attorney under the Illinois Power of Attorney Laws – 755 ILCS 45/Art. II is a legal document that needs to be executed by a principal before signing over the administration of their financial affairs to an agent. The form will remain valid even when the principal has lost their capacity due to illness or injury as stated by a certified physician.
It requires a witness to sign, and the process must be signed and executed in the presence of a notary public based on the Illinois Power of Attorney Laws 755 ILCS 45/3-3(b).
As seen in the Act’s section on Durable Powers of Attorney, “Durable” means providing a principal’s incapacity to make decisions. The statutes of the statutory form are available in the 755 ILCS 45/3-3 / Illinois Power of Attorney Act.
Download: Microsoft Word (.docx)
General (Financial) Illinois Power of Attorney
It is a legal authorization that allows a principal to grant their agent (someone they trust) the authority to act on their behalf regarding all purposes - financial and property matters as granted by the agreement under The Power of Attorney Act 755 ILCS 45/3-4.
Many people choose to put one in place during their lifetime. However, this particular POA only stays in effect until revoked by the principal or until they become unable to make these decisions themselves due to an illness or injury. The usual need for this type of POA is when the principal needs someone (agent) that has to be available for financial transactions on their behalf while they are away.
However, unlike Durable Power of Attorney, which remains valid after the principal has lost their capacity due to illness or injury, General (Financial) Power of Attorney becomes null if the principal is pronounced incapacitated in Illinois.
The statutes of the statutory form are available in the Illinois Power of Attorney Act §§ 45/1-1 — 45/4-12.
Under the law 755 ILCS 45/3-3.6, the document must be signed by a witness, the principal, in the presence of a notary public.
The General POA statutory form statutes are available in the Illinois Power of Attorney Act §§ 45/1-1 — 45/4-12.
Download: Microsoft Word (.docx)
Limited Power of Attorney
An Illinois limited power of attorney is a principal’s lawful transfer of authority to act during specific situations to an agent. The law supporting this authority is available under Illinois Power of Attorney 755 ILCS 45/3-4.
The Limited power of attorney authority is strictly confined to a specific authorization granted by the principal, and the agent shall not act outside this access. Therefore, this type of POA is applicable only when the principal needs to authorize an agent (a friend or relative) to preside on a matter or transaction for a very brief moment or a particular event.
The Limited POA statutory form statutes are available in the Illinois Power of Attorney Act §§ 45/1-1 — 45/4-12.
Download: Microsoft Word (.docx)
Minor (Child) Power of Attorney
Minor (Child) Illinois power of attorney is a lawful document that must be executed by parents (principal) who want to temporarily confer guardianship role to another individual, who can be responsible for their child if or when they are indisposed or unavailable.
This applies to parents who suddenly get diagnosed with a terminal illness, veterans, single parents, widows/widowers, etc. The agent’s authority and responsibility include management of finances left for the child by the parent, ability to make life decisions for the child such as education, shelter, feeding, healthcare matters, etc.
The process is regulated under the Illinois Power of Attorney Act 755 ILCS 45/4-3. The length of the appointed caregiver role is not specific but expires typically in six months to one year.
In Illinois, there is no statutory signing requirement for minor POA. However, the signing requirements include two witnesses present to sign while being acknowledged by a notary public.
Download: Microsoft Word (.docx)
Medical Power of Attorney
Illinois has a specific type of power of attorney specifically for health care agreements between a principal and an agent - known as the Medical Power of Attorney. The Illinois medical power of attorney form is used to appoint a health care agent who’ll make medical decisions on behalf of a person (principal) if they can no longer communicate their wishes.
The medical POA form requires the principal’s signature and one witness but does not have to be notarized like other POAs. This form specifies the specific kind of people that do not fit the requirements of a witness in 755 ILCS 45/4-10.
Principals in this case often wish for end-of-life treatment, so, to ensure that their demands and met, the Medical Power of Attorney is complemented with a Living Will.
Download: Microsoft Word (.docx)
Revocation of Power of Attorney
Revocation of Illinois power of attorney is the document issued to halt the previously state-authorized Illinois power of attorney from functioning. The agency relationship created by the revoked power of attorney ends immediately and may not continue or be reinstated.
However, it is essential to note that all parties involved must know the date for the revocation to be effective. With this in mind, the principal should make sure that their agent and financial institutions are aware of this revocation, simply making sure they have copies of the file.
Download: Microsoft Word (.docx)
Real estate power of attorney
The Illinois real estate power of attorney form must be executed if a principal wants to grant any trusted agent the power to manage certain real estate matters. The powers granted by this document include closing a sale or purchase of extensive property management of deeds, mortgages, and leases. The Power of Attorney Act backs this practice– 755 ILCS 45/3-4(a).
The principal should choose their real estate agent/lawyer very carefully! Based on the Power of Attorney Act - 755 ILCS 45/3-3(b), the signing requirements include a witness and signing in the presence of a notary public.
Download: Microsoft Word (.docx)
Tax Power of Attorney (IL-2848)
The Illinois Tax power of attorney form is a legal document that enables a principal to formally appoint an attorney-in-fact as their representative for tax filing purposes.
The document gives the appointed agent the ability to receive and open correspondence from the state, file protests to an assessment, endorse and collect payments from the state, and be in charge of all aspects of the taxpayer’s filings throughout their years of service.
The attorney-in-fact and the principal are expected to sign to execute the document. Still, if the agent is not an attorney or certified account, the document should include a witness’s signature or be notarized.
Download: Microsoft Word (.docx)
Vehicle Power of Attorney
If you want to delegate services related to your cars, such as vehicle registration and titling, you may establish a power of attorney with the Illinois Department of Vehicle Services. An Illinois Vehicle power of attorney is a document that is executed for an agent to be permitted to act on the principal’s behalf before the local Motor Vehicles Division (DMV), usually when handling car-oriented matters such as registration, titling, or driver’s license-related tasks.
Residents of Illinois are encouraged to use the Illinois Vehicle Power of Attorney form if they feel they may be temporarily unavailable to sign documents relating to the sale or transfer of a vehicle.
To execute the document, include your full name and information, the name of your designated representative, the make and year of your vehicle(s), and any other information needed by those involved. The principal’s signature alone is sufficient to authenticate the form
Download: Microsoft Word (.docx)
Springing Power of Attorney
The Springing power of attorney gives a principal’s assigned agent a broad range of powers to handle their financial affairs, including the ability to sell or transfer any of their property regardless of with or without the principal’s consent.
Suppose a principal chooses to name a successor agent in the document. In that case, they will only be able to act within the scope of another person’s prior actions as mentioned when originally designating an agent under this document. The principal may choose another person or persons, who may always act on behalf of them as an agent, but they cannot ever do so jointly with a co-agent.
The document can be used in various situations, from clearing up tax matters after death to collecting debts owed to them or maintaining any other kind of financial account. The agent should be ready to account for the disbursements, receipts, and every other related activity.
The extent of an agent’s power is detailed in Section 3-4 of the Illinois Power of Attorney Act.
The form requires at least one witness’s signature, the principal’s signature, and gets authorized in front of a notary public.
Download: Microsoft Word (.docx)
Property Power of Attorney
A property power of attorney (for property/real estate) is a limited power of attorney that allows a person or entity appointed by the principal to act on their behalf concerning property issues within the state, county, or city that they designate.
The agent has the power to act on the principal’s behalf in matters such as buying and selling of properties. The power should be specific to the only role that concerns the agent. Also, the principal has to go through the form and strike out non-property-related powers that they do not want the agent to have.
Download: Microsoft Word (.docx)
Illinois Power of Attorney Requirements
Power of attorney in Illinois must follow the precise laws outlined by the Illinois Compiled Statutes, Chapter 755, Article 45. This document is considered to be a legally binding document. For this reason, if a principal has given an agent some powers over their affairs, whether for medical or financial decisions, they must understand the requirements and legal repercussions.
The general requirements are as follows:
- The principal should assign an agent and expound on the extent of the assigned agent’s power or authority.
- The document should be signed and executed appropriately by the principal.
- There must be at least one witness who will be present to sign the document.
- The document must prove that a notary public acknowledged the principal’s signature.
- These POAs require that the principal, agent, and witness involved be 18year and above.
- All limitations associated with the witness status must be considered before selecting a witness.
- A notary can not simultaneously act as a witness.
Meanwhile, there is some pivotal information that must be included in the power of attorney form:
- Full name of the principal
- Full contact details of the principal
- Full name of the assigned agent
- The agreement execution date
- The specific power the principal is conferring to the agent
- Name of successors
- Address of successors
- Name of witness(s)
In any given case where someone becomes incapacitated or legally incompetent, they cannot revoke a power of attorney. The principal must have prepared and executed a revocable living trust, then friends and family will have to petition the court to remove an agent who is not acting in good faith.
Customizable Forms
How to Get Power of Attorney in Illinois?
To establish a power of attorney, the agent and the principal will need to fill out a Power of Attorney form and sign it as indicated by the law in Chapter 755 ILCS 45 of the Illinois Compiled Statutes known as the Illinois Power of Attorney Act.
In addition, power of attorney is constructive when specific incidents render you unable to address business matters, such as renovating your home, attending to a car crash issues, or having an upcoming medical procedure that requires extended recovery time.
Making this decision is easy and can be done by following the steps below.
Have a discussion
The principal must speak with their designated agent beforehand to ensure a smooth transition. Only the principal can genuinely know what they want and as such, only they can accurately assess whether or not giving a particular person power of attorney over their affairs is in their best interest.
They must consult with an agent or attorney who will act on their behalf if they become incapacitated and ensure that the agent understands the unique needs of their situation to make decisions that are in their best interest.
Create POA
Once the principal has had the discussion with their agent and are comfortable taking on those responsibilities, it’s time to create the document. There are two types of powers of attorney in Illinois: property and health care. Whether a principal has decided to create a power of attorney for property or medical purposes, it is vital to know their needs first.
Execute the document
Every state has its guidelines: Illinois, for example, requires the signer of a document to be in a physical room with two witnesses who have been adequately identified and an authorized notary. The notary’s role is to verify the identity of each person and that they’re acting under their “free and voluntary consent”.
Agent or notary cannot stand in as a witness.
Each state has its guidelines for proper execution. In Illinois, the document must be signed in the presence of two witnesses and a notary. It won’t be official if the POA is not signed under Illinois law. This means the agent may not be able to act on the principal’s behalf.
Make copies
It is not necessary to file a POA document with the court in Illinois. However, it’s good to make copies of it while keeping the original in a safe location.
Keep one copy for yourself. Provide several copies to your agent. If you have a health care power of attorney, the doctor or medical office may require a copy on file so they can deal directly with the agent. If you executed a property POA, the banks or other institutions might also require a copy on file.
Final Remarks
A power of attorney can be used to make sure that your wishes are followed if you cannot speak for yourself on healthcare and financial matters. In addition, this document can be critical if you become incapacitated, unavailable to make financial or business dealings, and physically disabled or legally incapable of making decisions.
We hope this article helped you learn more about the Illinois power of attorney process and that you can find the right type of power of attorney for your needs.
