Public Act 094-0938
 		





SB2676 Enrolled
LRB094 19015 AJO 54507 b






    AN ACT concerning civil law.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Illinois Power of Attorney Act is amended  by 
changing Sections 2-9 and 3-4 as follows:
 



    (755 ILCS 45/2-9)  (from Ch. 110 1/2, par. 802-9)



    Sec. 2-9. Preservation of estate plan and trusts. In 
exercising powers
granted under the agency, including powers of 
amendment or revocation and
powers to expend or withdraw 
property passing by trust, contract or
beneficiary designation 
at the principal's death (such as, without
limitation, 
specifically bequeathed property, joint accounts, life

insurance, trusts and retirement plans), the agent shall take 
the
principal's estate plan into account insofar as it is known 
to the agent
and shall attempt to preserve the plan, but the 
agent shall not be liable
to any plan beneficiary under this 
Section unless the agent acts in bad
faith.  An agent may not 
revoke or amend a trust revocable or amendable by
the principal 
or require the trustee of any trust for the benefit of the

principal to pay income or principal to the agent without 
specific
authority and specific reference to the trust in the 
agency.  The agent
shall have access to and the right to copy 
(but not to hold) the
principal's will, trusts and other 
personal papers and records to the
extent the agent deems 
relevant for purposes of this Section. This Section shall  not  
apply  to  any  Totten  Trust,  Payable  on  Death  Account, or 
comparable  trust  account  arrangement  where  the terms of such 
trust are contained entirely on the financial institution's 
signature card insofar as an  agent acting under a power of 
attorney executed in accordance with this Act shall be 
permitted to withdraw income or principal from such account if 
the  power  of  attorney  grants  the  agent authority to conduct 
financial institution   transactions  on  the  principal's  behalf  
and  the  agent's authority  to  access  such account is not 
expressly limited or withheld in the agency.


(Source: P.A. 85-701.)

 



    (755 ILCS 45/3-4)  (from Ch. 110 1/2, par. 803-4)



    Sec. 3-4. Explanation of powers granted in the statutory 
short form power
of attorney for property.  This Section defines 
each category of powers
listed in the statutory short form 
power of attorney for property and the
effect of granting 
powers to an agent.  When the title of any of the
following 
categories is retained (not struck out) in a statutory property

power form, the effect will be to grant the agent all of the 
principal's
rights, powers and discretions with respect to the 
types of property and
transactions covered by the retained 
category, subject to any limitations
on the granted powers that 
appear on the face of the form.  The agent will
have authority 
to exercise each granted power for and in the name of the

principal with respect to all of the principal's interests in 
every type of
property or transaction covered by the granted 
power at the time of
exercise, whether the principal's 
interests are direct or indirect, whole
or fractional, legal, 
equitable or contractual, as a joint tenant or tenant
in common 
or held in any other form; but the agent will not have power 
under
any of the statutory categories (a) through (o) to make 
gifts of the
principal's property, to exercise powers to 
appoint to others or to change
any beneficiary whom the 
principal has designated to take the principal's
interests at 
death under any will, trust, joint tenancy, beneficiary form
or 
contractual arrangement.  The agent will be under no duty to 
exercise
granted powers or to assume control of or 
responsibility for the
principal's property or affairs; but 
when granted powers are exercised, the
agent will be required 
to use due care to act for the benefit of
the principal in 
accordance with the terms of the statutory property power
and 
will be liable for negligent exercise.  The agent may act in 
person or
through others reasonably employed by the agent for 
that purpose and will
have authority to sign and deliver all 
instruments, negotiate and enter
into all agreements and do all 
other acts reasonably necessary to implement
the exercise of 
the powers granted to the agent.

    (a) Real estate transactions.  The agent is authorized to:  
buy,
sell, exchange, rent and lease real estate (which term 
includes, without
limitation, real estate subject to a land 
trust and all beneficial
interests in and powers of direction 
under any land trust); collect all
rent, sale proceeds and 
earnings from real estate; convey, assign and
accept title to 
real estate; grant easements, create conditions and release

rights of homestead with respect to real estate; create land 
trusts and
exercise all powers under land trusts; hold, 
possess, maintain, repair,
improve, subdivide, manage, operate 
and insure real estate; pay, contest,
protest and compromise 
real estate taxes and assessments; and, in general,
exercise 
all powers with respect to real estate which the principal 
could
if present and under no disability.

    (b) Financial institution transactions.  The agent is 
authorized to:
 open, close, continue and control all accounts 
and deposits in any type of
financial institution (which term 
includes, without limitation, banks,
trust companies, savings 
and building and loan associations, credit unions
and brokerage 
firms); deposit in and withdraw from and write checks on any

financial institution account or deposit; and, in general, 
exercise all
powers with respect to financial institution 
transactions which the
principal could if present and under no 
disability. This authorization shall  also  apply  to  any  Totten  
Trust,  Payable  on  Death Account, or comparable  trust  account  
arrangement  where  the terms of such trust are contained  
entirely  on the financial institution's signature card, 
insofar as  an  agent  shall be permitted to withdraw income or 
principal from such account,  unless  this authorization is 
expressly limited or withheld under paragraph  2  of the form 
prescribed under Section 3-3.  This authorization shall  not 
apply to accounts titled in the name of any trust subject to 
the provisions  of the Trusts and Trustees Act, for which 
specific reference to the trust and a specific grant of 
authority to the agent to withdraw income or  principal  from  
such  trust is required pursuant to Section 2-9 of the Illinois 
Power of Attorney Act and subsection (n) of this Section.


    (c) Stock and bond transactions.  The agent is authorized 
to:  buy
and sell all types of securities (which term includes, 
without limitation,
stocks, bonds, mutual funds and all other 
types of investment securities
and financial instruments); 
collect, hold and safekeep all dividends,
interest, earnings, 
proceeds of sale, distributions, shares, certificates
and 
other evidences of ownership paid or distributed with respect 
to
securities; exercise all voting rights with respect to 
securities in person
or by proxy, enter into voting trusts and 
consent to limitations on the
right to vote; and, in general, 
exercise all powers with respect to
securities which the 
principal could if present and under no disability.

    (d) Tangible personal property transactions.  The agent is

authorized to: buy and sell, lease, exchange, collect, possess 
and take
title to all tangible personal property; move, store, 
ship, restore,
maintain, repair, improve, manage, preserve, 
insure and safekeep tangible
personal property; and, in 
general, exercise all powers with respect to
tangible personal 
property which the principal could if present and under no 
disability.

    (e) Safe deposit box transactions.  The agent is authorized 
to:
open, continue and have access to all safe deposit boxes; 
sign, renew,
release or terminate any safe deposit contract; 
drill or surrender any safe
deposit box; and, in general, 
exercise all powers with respect to safe
deposit matters which 
the principal could if present and under no disability.

    (f) Insurance and annuity transactions.  The agent is 
authorized to:
procure, acquire, continue, renew, terminate or 
otherwise deal with any
type of insurance or annuity contract 
(which terms include, without
limitation, life, accident, 
health, disability, automobile casualty,
property or liability 
insurance); pay premiums or assessments on or
surrender and 
collect all distributions, proceeds or benefits payable under

any insurance or annuity contract; and, in general, exercise 
all powers
with respect to insurance and annuity contracts 
which the principal could
if present and under no disability.

    (g) Retirement plan transactions.  The agent is authorized 
to:
contribute to, withdraw from and deposit funds in any type 
of retirement
plan (which term includes, without limitation, 
any tax qualified or
nonqualified pension, profit sharing, 
stock bonus, employee savings and
other retirement plan, 
individual retirement account, deferred compensation
plan and 
any other type of employee benefit plan); select and change

payment options for the principal under any retirement plan; 
make rollover
contributions from any retirement plan to other 
retirement plans or
individual retirement accounts; exercise 
all investment powers available
under any type of self-directed 
retirement plan; and, in general, exercise
all powers with 
respect to retirement plans and retirement plan account

balances which the principal could if present and under no 
disability.

    (h) Social Security, unemployment and military service 
benefits.
The agent is authorized to: prepare, sign and file 
any claim or application
for Social Security, unemployment or 
military service benefits; sue for,
settle or abandon any 
claims to any benefit or assistance under any
federal, state, 
local or foreign statute or regulation; control, deposit to
any 
account, collect, receipt for, and take title to and hold all 
benefits
under any Social Security, unemployment, military 
service or other state,
federal, local or foreign statute or 
regulation; and, in general, exercise
all powers with respect 
to Social Security, unemployment, military service
and 
governmental benefits which the principal could if present and 
under no disability.

    (i) Tax matters.  The agent is authorized to: sign, verify 
and file
all the principal's federal, state and local income, 
gift, estate, property
and other tax returns, including joint 
returns and declarations of
estimated tax; pay all taxes; 
claim, sue for and receive all tax refunds;
examine and copy 
all the principal's tax returns and records; represent the

principal before any federal, state or local revenue agency or 
taxing body
and sign and deliver all tax powers of attorney on 
behalf of the principal
that may be necessary for such 
purposes; waive rights and sign all
documents on behalf of the 
principal as required to settle, pay and
determine all tax 
liabilities; and, in general, exercise all powers with
respect 
to tax matters which the principal could if present and under 
no disability.

    (j) Claims and litigation.  The agent is authorized to:  
institute,
prosecute, defend, abandon, compromise, arbitrate, 
settle and dispose of
any claim in favor of or against the 
principal or any property interests of
the principal; collect 
and receipt for any claim or settlement proceeds and
waive or 
release all rights of the principal; employ attorneys and 
others
and enter into contingency agreements and other 
contracts as necessary in
connection with litigation; and, in 
general, exercise all powers with
respect to claims and 
litigation which the principal could if present and
under no 
disability.

    (k) Commodity and option transactions.  The agent is 
authorized to:
buy, sell, exchange, assign, convey, settle and 
exercise commodities
futures contracts and call and put options 
on stocks and stock indices
traded on a regulated options 
exchange and collect and receipt for all
proceeds of any such 
transactions; establish or continue option accounts
for the 
principal with any securities or futures broker; and, in 
general,
exercise all powers with respect to commodities and 
options which the
principal could if present and under no 
disability.

    (1) Business operations.  The agent is authorized to:  
organize or
continue and conduct any business (which term 
includes, without limitation,
any farming, manufacturing, 
service, mining, retailing or other type of
business operation) 
in any form, whether as a proprietorship, joint
venture, 
partnership, corporation, trust or other legal entity; 
operate,
buy, sell, expand, contract, terminate or liquidate 
any business; direct,
control, supervise, manage or 
participate in the operation of any business
and engage, 
compensate and discharge business managers, employees, agents,

attorneys, accountants and consultants; and, in general, 
exercise all
powers with respect to business interests and 
operations which the principal
could if present and under no 
disability.

    (m) Borrowing transactions.  The agent is authorized to: 
borrow
money; mortgage or pledge any real estate or tangible or 
intangible
personal property as security for such purposes; 
sign, renew, extend, pay
and satisfy any notes or other forms 
of obligation; and, in general,
exercise all powers with 
respect to secured and unsecured borrowing which
the principal 
could if present and under no disability.

    (n) Estate transactions.  The agent is authorized to:  
accept,
receipt for, exercise, release, reject, renounce, 
assign, disclaim, demand,
sue for, claim and recover any 
legacy, bequest, devise, gift or other
property interest or 
payment due or payable to or for the principal; assert
any 
interest in and exercise any power over any trust, estate or 
property
subject to fiduciary control; establish a revocable 
trust solely for the
benefit of the principal that terminates 
at the death of the principal and
is then distributable to the 
legal representative of the estate of the
principal; and, in 
general, exercise all powers with respect to estates and
trusts 
which the principal could if present and under no disability;

provided, however, that the agent may not make or change a will 
and may not
revoke or amend a trust revocable or amendable by 
the principal or require
the trustee of any trust for the 
benefit of the principal to pay income or
principal to the 
agent unless specific authority to that end is given, and

specific reference to the trust is made, in the statutory 
property power form.

    (o) All other property powers and transactions.  The agent 
is
authorized to: exercise all possible powers of the principal 
with respect
to all possible types of property and interests in 
property, except to the
extent the principal limits the 
generality of this category (o) by striking
out one or more of 
categories (a) through (n) or by specifying other
limitations 
in the statutory property power form.

(Source: P.A. 85-701.)