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Public Act 094-0938
Public Act 0938 94TH GENERAL ASSEMBLY
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Public Act 094-0938 |
SB2676 Enrolled |
LRB094 19015 AJO 54507 b |
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| 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.)
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Effective Date: 1/1/2007
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