The Fives Types of Powers of Attorney in Illinois

 Posted on August 31,2022 in Estate Planning Blog

Establishing an estate plan early and reviewing it often will ensure your wishes are met and that your loved ones are protected; waiting too long to take care of your estate plan can instead leave your loved ones scrambling to make tough decisions. Having a power of attorney - i.e., giving someone the legal authority to make decisions for you - is essential for helping you and your family in times of need. Here are five kinds of powers of attorney and how each may benefit you.

Durable Power of Attorney

A durable power of attorney is applicable and legally binding as soon as it is signed. It is effective even if you become incapacitated, or unable to make decisions for yourself. Unless otherwise specified, most powers of attorney are presumed to be durable, but it is best to be as specific as possible in your estate plan. A durable power of attorney continues to be effective even if you come in and out of capacity, or if you are only capable of making certain decisions.

Springing Power of Attorney

A springing power of attorney becomes effective once you are no longer capable of making the kinds of decisions listed in the power of attorney document. Your designated agent will begin making decisions on your behalf, or “springing” into action only when necessary. Springing powers of attorney are useful for those who wish to keep making decisions as long as they can. You can be highly specific about the conditions that must be met before a springing power of attorney goes into effect.

General Power of Attorney

A general power of attorney document allows your designated agent to act for you in any legal situation, including your healthcare, financial, and legal matters. A general power of attorney is a powerful document, but it does not allow the agent to make changes to a will.

Financial Power of Attorney

An agent with financial power of attorney has limited authority to make decisions about money, including property. Someone with financial power of attorney could pay your bills, manage deposits and withdrawals, manage retirement benefits, and file taxes. You can designate only certain financial authority to your power of attorney if you wish, and the financial power of attorney can be durable or non-durable. For example, a non-durable power of attorney, such as an investment banker, may have the authority to manage your investments until you become incapacitated.

Medical Power of Attorney

A medical or healthcare power of attorney allows an agent to manage issues like medical treatments, administering medication, choice of doctors or hospitals, and end-of-life care. As with any power of attorney, your medical power of attorney should be someone you trust to respect your wishes when you are at your most vulnerable.

Contact a Lombard, IL Estate Planning Lawyer

Prepare yourself for any eventuality by having an airtight estate plan in place, including a power of attorney to help ensure your wishes are protected if you are no longer able to carry them out. Meet with the Lombard, IL estate planning attorneys with A. Traub & Associates to learn more about powers of attorney and how setting up this important legal instrument could benefit you. Call us at 630-426-0196 to schedule a confidential consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2113&ChapterID=60