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.)