A power of attorney can be an important part of planning for the unexpected. It allows you to choose someone you trust to handle certain decisions or responsibilities on your behalf. While the basic idea is straightforward, you may have questions about creating a power of attorney, choosing an agent, and making the document legally effective.
At Koch & Associates, we help Illinois residents create estate plans that address both the future and the possibility of incapacity. Here are answers to some of the most common questions about powers of attorney.
What Is a POA?
POA stands for “power of attorney.”It is a legal document in which one person, known as the principal, gives another person, known as the agent, authority to act on the principal’s behalf.
The amount of authority an agent receives depends on the document. A power of attorney can give an agent broad authority or limit that person to certain decisions and responsibilities.
In estate planning, powers of attorney are especially important because they can help prepare for a situation in which you become unable to manage your own affairs.
Illinois generally recognizes separate powers of attorney for property and healthcare. A property power of attorney can authorize an agent to handle financial matters. A healthcare power of attorney allows an agent to make healthcare decisions according to the authority provided by the document and applicable law.
Having the appropriate documents in place can help your family know who has authority to act when important decisions need to be made.
How to Assign Power of Attorney
If you are researching how to assign power of attorney, choosing your agent is one of the most important decisions you will make.
Your agent should be someone you trust to respect your wishes and act responsibly. Depending on the type of POA, that person could have authority over important financial or healthcare matters.
When selecting an agent, consider whether the person is:
- Trustworthy and responsible
- Willing to serve in the role
- Capable of making difficult decisions
- Familiar with your wishes and priorities
- Available when important decisions need to be made
Your agent does not necessarily have to be your spouse or closest relative. The right choice is someone you trust to exercise the authority responsibly.
Once you choose an agent, the power of attorney document must clearly identify that person and describe the authority you are granting.
How to Prepare a Power of Attorney
Understanding how to prepare a power of attorney involves more than writing down someone’s name and giving them permission to act for you. The document needs to comply with applicable Illinois law and accurately reflect what you want your agent to be able to do.
The process generally starts by determining what type of authority you want to grant. For example, you may need someone to handle financial matters, make healthcare decisions, or both.
You will also need to determine when the agent’s authority applies and whether there are particular powers you want to grant or limit.
Proper execution matters as well. Illinois law establishes requirements for powers of attorney, and mistakes in preparing or signing a document can create problems when your agent eventually needs to use it.
An estate planning attorney can help make sure your POA works with your will, trust, healthcare planning, and other parts of your overall estate plan.
How to Get Power of Attorney
If you want to give another person authority over your own affairs, you can create a power of attorney while you have the legal capacity to do so. You select your agent, determine the powers you want to grant, and properly execute the necessary document.
The situation is different if you are trying to obtain authority over another adult’s affairs. You generally cannot simply “get” power of attorney over someone else. The principal is the person who voluntarily grants that authority.
If someone has already become incapacitated without creating an appropriate power of attorney, a family member may need to consider other legal options, potentially including guardianship proceedings. This is one reason creating powers of attorney before an emergency occurs can be so valuable.
Do You Need a Lawyer for Power of Attorney?
Not every situation legally requires an attorney. However, working with an estate planning lawyer can help you avoid mistakes and ensure the document accomplishes what you actually intend.
Online forms may appear simple, but they cannot always account for your financial circumstances, family relationships, existing estate plan, or specific concerns.
Legal guidance can be particularly valuable if you have substantial assets, own a business, have complicated family circumstances, want to limit an agent’s authority, or need to coordinate your POA with a trust or other estate planning documents.
An attorney can also explain what authority you are granting before you sign. That matters because a power of attorney can give another person significant control over important areas of your life.
When Should You Create a Power of Attorney?
You do not need to wait until you are older or experiencing health problems to create a POA. In fact, waiting until an emergency happens can make planning much more difficult.
A serious accident or unexpected illness can happen at any age. Creating a power of attorney while you are healthy and capable of making your own decisions lets you choose who should act for you instead of leaving your family to address the issue during a crisis.
You should also review existing powers of attorney periodically. Marriage, divorce, changes in family relationships, relocation, or the death of a previously selected agent can be reasons to revisit your documents.
Make Your Power of Attorney Part of a Complete Estate Plan
A power of attorney is most effective when it is coordinated with the rest of your estate plan.
At Koch & Associates, we take a personalized approach to estate planning. As a fifth-generation law firm with more than 50 years of combined legal experience, we help individuals and families understand their options and create legal documents that reflect their specific needs. We also provide legal services directly in English and Spanish, without requiring Spanish-speaking clients to communicate through a translator.
If you have questions about how to assign power of attorney, how to prepare the right documents, or how a POA should fit into your estate plan, Koch & Associates is here to help.
Call Koch & Associates at (312) 664-4328 today to schedule a consultation with our estate planning team and take the next step toward protecting yourself, your family, and your future.
