Our Ask An Angel correspondent is Arlene Petersen, Certified Senior Advisor and Life Care Navigation Specialist in the area of senior home care.
Q. My children want me and my husband to consider putting a power of attorney in place. What is that, and what do I need to do?
A. A power of attorney (POA) is a legal document that allows a designated agent to represent you should you become incapacitated in health or financial circumstances. It allows a designated person, whom you choose, to act on your behalf when it comes to your health or finances. These are two separate documents. My advice would be to contact an elder law attorney who can guide you with the proper forms for Illinois. In general, it is important to know a few things.
The state of Illinois has posted the following information on their website regarding POA forms:
One is for health care and personal care issues, the other is for financial and property management issues. The same person may serve as both the health care agent and the financial agent, or different individuals may be appointed. Likewise, the extent of the powers which the principal delegates to the agent may be very broad, or narrow and specific. These are matters at the discretion of the principal.
Third parties (such as a hospital or a bank) may rely upon the agent’s authority to make decisions or transact the principal’s business if they are presented with an apparently valid document. Only if third parties know that the agent is not authorized to make decisions or have sound reasons to be suspicious of the agent or the document can they be held liable for the actions of the agent.
Because of this, a power of attorney is a powerful document. The principal, the person making the delegation of power to an agent, must totally trust the agent with his or her health and wealth. An agent who abuses his or her authority under a power of attorney may be “fired” by a principal (by the principal revoking the document) or may have a court cancel his or her authority (if the principal can no longer act).
In many cases of financial exploitation of older persons, the exploiters have the older person sign a financial power of attorney, which gives the exploiter an apparent legal right to withdraw funds from the older person’s bank accounts and similar transactions. This makes it difficult to detect and stop the exploitation.
These documents are powerful tools that can be used to assist and protect an older person, or they can be misused to exploit that older person. Much depends upon the trustworthiness of the appointed agent.
Illinois law allows an individual to authorize another person to handle personal and business affairs in the event he or she is unable to due to absence, illness, or disability to make health care decisions.
The state website is: www.state.il.us/aging/1abuselegal/legal_adv-directives.htm
Most elder law attorneys will recommend that you have a power of attorney in place. Once in place, you should have a copy of the documents, as well as giving copies to your chosen agent. If you already have a power of attorney in place, you might want to check with your attorney to make sure you have the most current format. In Illinois, updates went into effect in 2011. Your estate planner will be able to review your documents to ensure you have the most up-to-date versions. Having your existing estate plan reviewed may be the best decision for you and your loved ones.
If you need a referral for an elder law estate attorney, please give me a call. I have a network of trusted sources for this area of your life. Call me at 847-429-0100.
Have a question for our angel correspondent? You can send our angel an email to apetersen@visitingangels.com or send your question via mail to Ask An Angel, 65 Woodbury St., South Elgin, IL 60177.
1 Comment
i think that power of attorney in favor of third parties to give and will be safe in future your property .