Power of attorney is a practical, if often misunderstood, tool that allows a designated person to act on your behalf any time you need it or when you are incapacitated. In Illinois, powers of attorney can cover financial, property, and/or health care matters. The scope of duties can be as broad or narrow as the principal desires but it expires upon the principal’s death.
An experienced estate planning attorney can craft a power of attorney as part of a comprehensive estate plan. Evaluating your assets and helping you decide how to apportion them is just part of an estate plan.
Power of Attorney, Tailored to Your Needs
When you create a comprehensive estate plan, it includes end of life plans. This goes beyond protecting your assets from probate and who inherits your classic car. End of life plans are important because:
- Becoming incapacitated can happen unexpectedly, creating chaos in the lives of family members.
- The person(s) you designate with power of attorney can manage your affairs, freeing your family members from additional stress.
- You can provide power of attorney to more than one person, including designating one to oversee your medical care and ensure your wishes for your final days are honored.
- In the absence of a person with power of attorney your family may have to ask a court to appoint a guardian or conservator to handle your business, pay your bills, and manage other aspects of your life, including healthcare decisions.
Your estate attorney can guide you through the process of deciding which type of power of attorney to put in place, and what kind of conversation to have with your designee so they understand your desires and expectations. There are specific types of power of attorney that apply to end of life situations; unlike most other states, in Illinois it is standard for power of attorney to remain in effect when the principal becomes incapacitated.
The types of power of attorney recognized in Illinois are the following:
- Durable POA. Standard in Illinois, this form stays in effect if you become incapacitated and cannot make decisions or communicate. They can be designated to handle property issues or healthcare issues.
- Springing POA. This power of attorney only goes into effect after a triggering event, such as a doctor determining that the principal is incapacitated. The requirement of documenting incapacitation can cause delays.
- Limited POA. If you only want to grant a person power to complete your taxes, sell your home, or run your business, a narrowly defined POA can do that.
Important considerations when setting up your POA include choosing the right person for the role who is knowledgeable about your accounts, healthcare issues, and personal wishes, as well as choosing a successor POA in case the first person is unable to perform the necessary tasks. If you own property in multiple states it may be best to have a POA in each to prevent confusion. In addition:
- Illinois POA law is distinct from states that have adopted the Uniform Power of Attorney Act, so the state has its own forms and requirements
- In Illinois, a POA is assumed to be durable
- In January, 2025, Illinois POA law was amended and strengthened to allow the principal’s agent to use a copy or electronic version of the original POA document and to define unreasonable refusals to honor the POA
- The power of attorney for health care but is a distinct form that must be legally signed and witnessed. It overlaps with a living will but is recognized as being more authorotative.
Setting Up a POA to Protect Your Estate
Consulting an experienced Illinois estate planning attorney can help ensure your documents comply with state law and reflect your wishes. The estate attorneys from Legacy & Life Law Firm are expert at listening to clients and translating their wishes into comprehensive estate plans. With this completed you’ll have peace of mind that your affairs and your family are well cared for.