Illinois Statutory Short Form Power Of Attorney For Property (Page 4 of 7) in pdf

ILLINOIS COMPILED STATUTES - SECTION 45/3-4

Section 45/3-4. 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 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 trust; hold, possess, maintain, repair, improve, subdivide, manage, operate

and insure real estate; pay, contest, protect 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 of financial institution transactions which the principal could if present and under no disability.

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 box 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

term 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 non-qualified 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 for

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.

l. 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 interest 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.

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