What Are Illinois Financial and Health Care Powers of Attorney?

 Posted on May 19, 2025 in Estate Planning

A surprising number of people do not have an estate plan in place, which means that they have not outlined what will happen to their assets should they die or become incapacitated. A power of attorney (POA) document ensures that someone is there to manage your affairs when you are not in a position to do so for yourself. If you have questions about building an estate plan and drafting a power of attorney document, a Wheaton, IL estate planning lawyer can help.

Definition of Power of Attorney in Illinois

Illinois defines a power of attorney as a legal document that allows you, the principal, to designate another person to make decisions on your behalf. The selected individual is called the agent or attorney-in-fact, and the decisions typically regard finances and health care. POAs can be specific or broad, limiting the agent's responsibilities to a set of tasks or granting them a wide range of power. In Illinois, there are several types of POAs, but the two most commonly included in an estate plan are financial POAs and health care POAs.

A financial POA, sometimes called a "general power of attorney," handles financial and business decisions. A health care POA is called a "durable power of attorney for health care" in Illinois. This document allows someone to make medical decisions for you when you cannot make them for yourself. Both types are considered "durable" because they take effect immediately and remain in effect if you are incapacitated.

Legal Requirements for a Power of Attorney in Illinois

The state will only recognize the validity of a POA if it meets the legal requirements outlined in Illinois law. You must use the designated form and name the agent and the agent’s powers before signing it, often before a notary public and a witness. Additionally, the document must include statutory language, the specific wording used in official form. 

Limitations on a Power of Attorney in Illinois

Despite the power a POA provides, agents are not permitted to do as they please on behalf of the principal, even though principals sometimes cannot control every decision an agent makes. Some specific limitations of POA documents include:

• An agent cannot alter the will of a principal.

• Banks may not accept a POA if they think they need to protect the principal from fraud or abuse.

• POAs can only be created through the proper statutory forms.

• Agents cannot transfer their POA to another party without consent from the principal.

The Illinois Power of Attorney Act also limits who can be an agent. Agents must be at least 18 years old and demonstrate their ability to make decisions about property, financial, and medical matters. They must also be of sound mind and understand the legal implications of being an agent in a POA agreement.

Contact a Lombard, IL Estate Planning Attorney Today

Understanding the responsibilities and rights involved in establishing and executing a power of attorney document is an important component of estate planning in Illinois. At A. Traub & Associates, our DuPage County, IL estate planning lawyers will work directly with you to ensure you know what you are signing and how your financial and health matters will be managed should you ever need assistance. Call 630-426-0196 to schedule an initial meeting about protecting yourself, your loved ones, and your property.