The Power to Protect: Understanding Power of Attorney in Illinois
Whether you are facing a sudden illness, a serious injury, or the challenges of cognitive decline, having the proper legal protections in place can make all the difference. In Illinois, an essential document to include in your estate plan is the Power of Attorney (POA). This ensures your wishes are respected and your affairs are managed if you are unable to act for yourself.
What is a POA, and Why Is It Important?
A POA is a legal document that allows you, the principal, to authorize another person, the agent, to make decisions on your behalf. Depending on the type of POA, your agent may be authorized to handle matters related to your property, finances, or health care, or other personal, legal, or business affairs as specified in the document.
A POA is important because it provides a legal framework for someone you trust to step in if you are unable to make decisions yourself. Without a POA in place, your loved ones may be forced to go through the court system to establish guardianship – an often time-consuming, costly, and stressful process. By planning ahead, you can retain control over who makes decisions on your behalf, while also helping your family avoid unnecessary legal hurdles.
In Illinois, there are two primary types of POA:
- POA for Property: This authorizes your agent to manage your financial affairs. Responsibilities may include managing bank accounts, buying or selling real estate, paying bills, or handling investments.
- POA for Health Care: This grants your agent the authority to make medical decisions on your behalf if you are unable to do so. Depending on the scope of the POA, it may include the power to consent to or refuse treatment and make end-of-life care decisions based on your wishes.
Illinois Requirements for a Valid POA
For a POA to be legally valid in Illinois, it must meet specific statutory requirements to ensure it is enforceable and recognized by financial institutions, healthcare providers, and other third parties. All POAs in Illinois must:
- Be in writing
- Be signed by the principal
- Be witnessed by at least one adult
- Name an agent that is at least 18 years old and capable of acting in your best interest
- (Optional) Name a successor agent case the primary agent is unable or unwilling to serve
In addition to the above, a POA for property must also be notarized to be enforceable. This notarization requirement does not apply to a POA for health care.
Can a POA Be Changed?
As long as you are mentally competent, you can revoke or update your POA at any time. Common reasons to make changes include a change in relationship (such as divorce), your agent becoming unavailable, or a desire to adjust the scope of the agent’s authority. To revoke a POA, you must provide written notice to your designated agent and notify any institutions or individuals who may have relied on the original document.
How We Can Help
Levin Ginsburg provides personalized estate planning services tailored to the individual needs of the client. We can help with drafting new POA documents, updating existing ones, or seeking guidance on an agent’s responsibilities. Get in touch with one of the members of our Wealth Management and Asset Protection group for assistance with POA related matters.
