755 ILCS 45/3-4
2021 Illinois Compiled Statutes|Chapter 755 - ESTATES|755 ILCS 45/ - Illinois Power of Attorney Act.|Article III - Statutory Short Form Power Of Attorney For Property

 (from Ch. 110 1/2, par. 803-4)Sec. 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, and is incorporated by reference into the statutory short form. Incorporation by reference does not require physical attachment of a copy of this Section 3-4 to the statutory short form power of attorney for property.  When the title of any of the  following categories is retained (not struck out) in a statutory property  power 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 act in good faith for the benefit of  the principal using due care, competence, and diligence 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 trusts; hold, possess, maintain, repair,  improve, subdivide, manage, operate and insure real estate; pay, contest,  protest 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 to financial institution transactions which the  principal could if present and under no disability. This authorization shall  also  apply  to  any  Totten  Trust,  Payable  on  Death Account, or comparable  trust  account  arrangement  where  the terms of such trust are contained  entirely  on the financial institution's signature card, insofar as  an  agent  shall be permitted to withdraw income or principal from such account,  unless  this authorization is expressly limited or withheld under paragraph  2  of the form prescribed under Section 3-3.  This authorization shall  not apply to accounts titled in the name of any trust subject to the provisions  of the Illinois Trust Code, for which specific reference to the trust and a specific grant of authority to the agent to withdraw income or  principal  from  such  trust is required pursuant to Section 2-9 of the Illinois Power of Attorney Act and subsection (n) of this Section.(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 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 terms 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  nonqualified 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 or 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. The statutory short form power  of attorney for property does not authorize the agent to appear in court or any tribunal as an attorney-at-law for the principal or otherwise to engage in the practice of law without being a licensed attorney who is authorized to practice law in Illinois under applicable Illinois Supreme Court Rules.(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 interests 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 transactions.  The agent is  authorized to: exercise all possible authority of the principal with respect  to all possible types of property and interests in property, except to the  extent limited in subsections (a) through (n) of this Section 3-4 and to the extent that the principal otherwise 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.  (Source: P.A. 101-48, eff. 1-1-20.)