Power of Attorney in Chicago

Illinois Power of Attorney: Property vs. Health Care

Illinois governs powers of attorney under the Illinois Power of Attorney Act. The Act treats two categories of authority as entirely separate documents. Understanding the distinction is the first step in making sure your planning covers what you actually intend.

Property Power of Attorney

A property power of attorney authorizes an agent (called an attorney-in-fact) to act on the principal’s behalf in financial and business matters. That authority can cover real estate transactions, banking, investment accounts, and day-to-day business operations. Illinois property powers of attorney are generally durable by default, meaning incapacity doesn’t automatically revoke the agent’s authority unless the document says otherwise.

Health Care Power of Attorney

A health care power of attorney is a separate document covering medical decisions. It can authorize the agent to choose providers and care facilities, make treatment decisions, and determine care settings when the principal can’t communicate those choices. An agent acting under a property power of attorney has no authority over health care matters. The two documents serve distinct purposes, and neither substitutes for the other.

Both documents generally terminate at the principal’s death, at which point the agent’s authority ends and estate administration takes over.

Execution Requirements Under Illinois Law

Illinois sets different signing requirements for each document type. General legal requirements for each are outlined below, though your specific document should be reviewed by an attorney to confirm compliance.

Property power of attorney requirements typically include:

• Signed by the principal
• Signed by at least one witness
• Acknowledged before a notary public
• The notary generally may not also serve as the witness

Health care power of attorney requirements typically include:

• Signed by the principal
• One witness who is 18 or older
• Notarization is not required

Illinois law generally disqualifies certain individuals from serving as witnesses regardless of document type. Close relatives of the principal or agent, the attending physician, and health care facility operators are among those who often can’t serve in that role.

When Your Power of Attorney Takes Effect

A power of attorney can take effect immediately upon signing or be structured as a “springing” document that activates only after a physician determines the principal is incapacitated. Immediate effectiveness is generally the better choice. A springing arrangement requires someone to locate and present medical documentation at the exact moment it’s needed, which can delay action when time matters most.

Without a valid document in place, the alternative is a court proceeding. A family member may need to petition the Circuit Court of Cook County, Probate Division to establish guardianship before gaining authority to manage an incapacitated person’s financial or business affairs. That process can take time and money that a properly drafted power of attorney may help avoid.