Power of Attorney in Illinois: Types, Requirements, and Importance

A power of attorney (POA) is a legal document that lets you (the principal) appoint someone else (the agent) to make important decisions for you. In Illinois, these decisions can involve managing finances or making healthcare choices. The Illinois Power of Attorney Act (755 ILCS 45/) provides official forms and rules for these documents.

Types of Power of Attorney in Illinois

Financial Power of Attorney

Allows your agent to manage your finances, including:

- Banking transactions

- Real estate deals

- Tax filings

- Insurance matters

- Retirement plan distributions

You decide exactly which financial powers your agent holds.

Power of Attorney for Health Care

Grants your agent authority to make medical decisions if you become unable to do so, such as:

- Selecting doctors or hospitals

- Approving or refusing treatments

- Making end-of-life care decisions

- Arranging organ donations

Limited Power of Attorney

Authorizes your agent to handle only specific tasks or for a limited period, as you specify.

How to Get a Power of Attorney in Illinois

Financial POA Requirements

- You must sign the document.

- At least one witness (not your agent) must sign.

- A notary public must acknowledge your signature.

- Include all required legal notices.

Health Care POA Requirements

- You must sign the document.

- One witness (not your agent, healthcare provider, or family member) must sign.

- Notarization is recommended but not required.

When Does the Power of Attorney Start?

Your POA can begin:

- Immediately after signing

- On a specific date or upon a specified event

- Only if you become incapacitated (a “springing” POA)

Agent’s Duties and Responsibilities

Your agent must:

- Act honestly and with care

- Keep clear records of all actions

- Avoid conflicts of interest

- Protect your assets and property

Your agent cannot:

- Mix your funds with their own

- Borrow your money without explicit permission

- Continue acting after the POA ends

How and When the Power of Attorney Ends

A POA terminates if:

- You revoke it in writing

- You pass away

- Your agent becomes incapacitated (unless a successor agent is named)

- A court determines the agent is misusing authority

Why You Need a Power of Attorney in Illinois

Having a POA:

- Avoids costly court guardianship proceedings

- Ensures decisions follow your wishes in medical and financial matters

- Prevents stress and legal battles for your family

- Provides continuity if you become unable to act

Key Takeaways

- A POA lets you appoint someone to make decisions on your behalf.

- Illinois provides distinct forms for financial and healthcare POAs.

- Legal requirements (signatures, witnesses, notarization) must be met for validity.

- Choose a trustworthy agent to safeguard your interests.

- Without a POA, your family may face difficult court processes.

For residents in Palos Heights and throughout Illinois, a properly executed power of attorney is essential for protecting your future.

If you need help creating or understanding your POA, contact Khatib Law LLC Click here or call 708-722-2222.

Hani Khatib; Attorney at Law, CPA, and LL.M. in Taxation

Disclaimer: This blog post is intended for informational purposes only and does not constitute legal, tax, or financial advice. The information provided is general in nature and may not apply to your specific situation. Always consult with qualified professionals before making decisions about your business structure.