Does the New Illinois Power of Attorney Law 2024 Help Your Family?

1. Reliance and Protection: Any person who acts in good faith based on a copy of a POA document is protected legally as if they dealt directly with the principal, provided they lack contrary knowledge.
2. Agent’s Certification Requirement: An agent, upon request, must provide a certification stating the POA’s validity, the principal’s capacity, and that the agent’s authority remains active. This is punishable by perjury if falsified.
3. Reasonable and Unreasonable Grounds for Refusal:
   • Unreasonable Refusal: A third party’s refusal to honor a POA is deemed unreasonable for minor issues, such as using a non-preferred form or not having an original signature.
   • Reasonable Refusal: Grounds for legitimate refusal include suspected fraud, principal’s death, knowledge of incapacity, abuse reports, or invalid signatures.
4. Civil Liability for Noncompliance: Entities failing to comply with an agent’s directions without reasonable cause may be subject to civil liability for damages resulting from the refusal.

This amendment aims to streamline third-party acceptance of POAs while protecting agents and entities from potential fraud or abuse concerns.  For many years I have seen institutions such as banks, investment companies, and insurance companies have used a variety of roadblocks to render irrelevant the POA’s that individuals have made with their local Will County lawyers. Claims such as “the POA is too old,” were never made in good faith.  They were, in many cases, an attempt by the institutions to coerce customers into using powers of attorney that were drafted by the institutions themselves.  Speak to your Naperville estate planning lawyer about making sure that everyone you work with will comply with this welcome new law. For further details, contact my office and ask to discuss the new Illinois Power of Attorney law 2024.