Topic: Power of Attorney
-
Under the Consumer Fraud and Deceptive Business Practices Act credit report section, how is a “disabled person” defined? How could someone place a security freeze on the credit report of a person with Alzheimer’s disease?
—
by
“Disabled person” is not a defined term in the provisions relating to credit reports in the Consumer Fraud and Deceptive Business Practices Act (CFDBPA). Nonetheless, the CFDBPA does provide that “a security freeze [may] be placed on the credit report of a disabled person” and authorizes two types of persons to place this type of…
-
Can a customer sign real estate loan closing documents via a power of attorney (POA)?
—
by
Yes, we believe a customer may sign real estate loan closing documents via a power of attorney (POA), provided that the POA form authorizes the attorney-in-fact to execute real estate documents. The Illinois Power of Attorney Act provides a form for Power of Attorney documents, titled the “Statutory Short Form Power of Attorney for Property”…
-
We have a customer who has one power of attorney on file, and who later gave us a non-statutory form (drafted by the customer’s attorney) that names a different agent, without revoking the previous power of attorney. Can both agents act as co-agents?
—
by
Under Illinois law, it is possible for a principal to name two agents in separate power of attorney forms (even though the statutory form does not permit the naming of co-agents). 755 ILCS 45/2-10.5. In addition, a power of attorney will remain in effect until either the principal dies or revokes the power of attorney.…
-
One of our customers has a power of attorney for his father’s account. Can he add himself as a payable-on-death beneficiary on the account?
—
by
We believe that the customer may add himself as a payable-on-death beneficiary on the account if the power of attorney agreement expressly provides authority to name or change beneficiaries. Whether or not your customer may add himself as a payable-on-death beneficiary depends on whether the power of attorney agreement provides the son with that power.…
-
A local attorney has criticized our policy of freezing customer accounts when we find that the account owner has died (with exceptions for joint accounts). Should we, as this attorney urges, permit individuals with powers of attorney for deceased customers to withdraw account funds for funeral and other end-of-life expenses?
—
by
We do not recommend permitting individuals with expired power of attorney documents to withdraw a deceased customer’s account funds. Under the Illinois Power of Attorney Act, a power of attorney expires when the person granting the power (the “principal”) dies. 755 ILCS 45/2-5
-
What are some issues we should watch out for when a customer brings in a self-prepared power of attorney?
—
by
If a customer brings in a self-prepared power of attorney, some things to watch out for would be: Use of the most up-to-date form. In most cases, the form from the Illinois Power of Attorney Act should be used. The form for property powers can be found in 755 ILCS 45/3-3. Also check that the…
-
Can you explain the significance of the recent amendment to the Power of Attorney Act? Why doesn’t the exception for financial institutions apply to durable powers of attorney?
—
by
Public Act 97-868 amended the Power of Attorney Act to create an exception from its requirements for certain powers of attorneys used by financial institutions. But the amendment provides that this exception does not apply to “durable” powers of attorney. A power of attorney is “durable” if it would survive the death or incapacity of…
-
Should we accept a power of attorney that is four years old?
—
by
Under the Illinois Power of Attorney Act, a power of attorney remains in effect until either the person granting the power (the “principal”) dies or until the principal revokes it. 755 ILCS 45/2-5. Further, the Act provides a safe harbor from liability if you act “in good faith reliance on a copy of a document…