Powers of Attorney for Financial and Legal Needs
Before you become incapacitated, it is necessary to execute a Power of Attorney for property, finances, and legal needs. This is called the Illinois Statutory Power of Attorney for Property. Once a person becomes incapacitated it is too late and it will be necessary to establish a guardianship through the court which can be a lengthy, time-consuming process. Planning ahead allows you to control who has power over your financial assets.
Items that are frequently overlooked are the IRA, gifting, and Digital Assets. It is necessary to give your agent specific authorization in these matters. If these items are not included in your powers of attorney, it may result in the appointment of a guardianship which is costly and time consuming.
Establishing limited Powers of Attorney (POA) you will designate a trusted person to make legal and financial decisions on your behalf for limited purposes. We use the limited power of attorney frequently when we do real estate transactions. In many cases the client does not want to attend the closing and will designate one of our attorneys to be their agent for the limited purpose of executing the closing documents. Other cases include designating a person to assist to pay your bills, access a designated bank accounts or credit cards, handle a specific investment. The Limited Power of Attorney can be a useful document.
To learn more about how limited Powers of Attorney can enhance your estate plan, contact Knauf Law at 630-875-0500 to schedule a consultation