Power of Attorney for Property
(Statutory Short Form) (IL)

Summary

This template is a statutory short-form power of attorney for property for use in Illinois to appoint an agent to act on the client's behalf. It provides the designated agent with broad authority to manage the property and other personal affairs of the client. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template is based on the Statutory Short-Form Power of Attorney for Property, which appears in Article III to the Illinois Power of Attorney Act (Act). See 755 Ill. Comp. Stat. 45/3-3. A power of attorney in substantially the same format as this template may be used to create a statutory power of attorney under the Act. See 755 Ill. Comp. Stat. 45/3-3(a). The Act does not prohibit an individual from using a different or non-statutory form to grant powers to an agent as long as (1) the principal executes the document, (2) it names the agent and agent's powers, (3) at least one individual witnesses the principal's signature, and (4) the principal acknowledges their signature before a notary public. 755 Ill. Comp. Stat. 45/3-3(b). A statutory form has multiple advantages, however, including uniformity among practicing attorneys and increased acceptance by third parties. It can be modified, as necessary, to reflect individual client circumstances. Since this statutory form grants broad powers, direct your client to cross out the powers he/she/they does not want to grant to the agent. The template also includes an optional provision authorizing the agent to make gifts from the client's property. It is very important for your client to select an agent that he/she/they trusts as the agent will be in charge of your client's finances and property. The agent must keep records of all receipts, disbursements, and significant actions taken on the principal's behalf. See 755 Ill. Comp. Stat. 45/2-7(c). The agent should maintain an accounting and keep it updated at all times. Moreover, your client's agent has a duty to act in good faith for your client's benefit, and use due care, competence, and diligence. 755 Ill. Comp. Stat. 45/2-7(a). If the agent violates his fiduciary duties by engaging in dishonest or improper behavior, a court can remove the agent's powers of and appoint a guardian to make decisions concerning your client's assets and/or grant other appropriate relief. 755 Ill. Comp. Stat. 45/2-10. This template does not grant the agent the authority to make medical decisions. For a template that authorizes an agent to make medical decisions for your client, see Power of Attorney for Health Care (Statutory Short Form) (IL). For a full listing of key content on creating an estate plan for an individual with a spouse or partner residing in Illinois, see Estate Plan for Individual with Spouse or Partner Resource Kit (IL). For additional information on powers of attorney, see Types of Powers of Attorney and Authority Granted (IL). For more information on estate planning strategies, see Estate Planning Strategies and Devices (IL).