Power of Attorney Form: Top 5 Things to Consider in Chicago
A power of attorney (POA) form is an essential document that grants another party the legal authority to act on your behalf3 min read
A power of attorney (POA) form is an essential document that grants another party the legal authority to act on your behalf. With a POA form, you can give someone control over your financial and legal affairs. The document is often used when the principal is unable to manage their own matters due to being physically or mentally incapacitated.
More and more people in Chicago are turning to a Power of Attorney to make sure their estate is managed in case of incapacity or death. It’s important to understand the nuances of signing a Power of Attorney and the risks that come with it, specific to Chicago laws. Here are 5 critical things to consider when you sign a Power of Attorney form in Chicago.
1. Know the Types of Power of Attorney Documents Available
The first thing to consider when signing a Power of Attorney form in Chicago is the types of POA documents available. Generally there are two types of Powers of Attorney: Durable and Non-Durable. Durable POA documents allow the appointed agent to manage the grantor’s affairs if the grantor becomes incapciatated. Non-Durable POA documents terminate once the grantor becomes incapacitated. Make sure that your Power of Attorney document is either Durable or Non-Durable depending on your needs.
2. Understand What Your Agent Can Do
The second thing to consider when signing a Power of Attorney in Chicago is what your agent can do. Your agent can be granted the power to sell real estate, open and close bank accounts, make healthcare decisions, and more. When signing a Power of Attorney, be clear and specific about the granted powers. You may opt to give your agent limited powers or broad powers and the POA document should lay out these powers in detail.
3. Choose an Agent You Trust
The third thing to consider when signing a Power of Attorney in Chicago is choosing an agent you trust. Appointing an agent to manage your financial and legal affairs is a serious responsibility and you should only choose someone you trust. You may choose to appoint a family member or close friend as your agent or you may opt to appoint a professional like an attorney or financial advisor. Whomever you choose, you need to be sure that you trust them and that you are comfortable with them making decisions on your behalf.
4. Consider Getting Professional Help
The fourth thing to consider when signing a Power of Attorney in Chicago is getting professional help. You may require the help of a lawyer or a financial advisor to ensure you understand all the nuances of signing a POA form. Additionally, an attorney can help you draft a document that meets all your needs and ensures that you are protected should something happen to you.
5. Know When To Use a POA
The fifth thing to consider when signing a Power of Attorney in Chicago is knowing when a POA should be used. Generally, a POA can be used in situations where you’re unable to manage your own affairs due to incapacity or death. It’s important to note that POA documents are not valid if the grantor is still able to manage their own affairs.
Final considerations
A Power of Attorney form is an important document to have in place when managing your financial and legal affairs in Chicago. Consider these five important points to ensure you’re well-protected and that the POA meets all your needs. If you need assistance, consider seeking the help of an experienced legal or financial advisor.
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