Full Text of SB2676 94th General Assembly
SB2676enr 94TH GENERAL ASSEMBLY
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Power of Attorney Act is amended by | 5 |
| changing Sections 2-9 and 3-4 as follows:
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| (755 ILCS 45/2-9) (from Ch. 110 1/2, par. 802-9)
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| Sec. 2-9. Preservation of estate plan and trusts. In | 8 |
| exercising powers
granted under the agency, including powers of | 9 |
| amendment or revocation and
powers to expend or withdraw | 10 |
| property passing by trust, contract or
beneficiary designation | 11 |
| at the principal's death (such as, without
limitation, | 12 |
| specifically bequeathed property, joint accounts, life
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| insurance, trusts and retirement plans), the agent shall take | 14 |
| the
principal's estate plan into account insofar as it is known | 15 |
| to the agent
and shall attempt to preserve the plan, but the | 16 |
| agent shall not be liable
to any plan beneficiary under this | 17 |
| Section unless the agent acts in bad
faith. An agent may not | 18 |
| revoke or amend a trust revocable or amendable by
the principal | 19 |
| or require the trustee of any trust for the benefit of the
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| principal to pay income or principal to the agent without | 21 |
| specific
authority and specific reference to the trust in the | 22 |
| agency. The agent
shall have access to and the right to copy | 23 |
| (but not to hold) the
principal's will, trusts and other | 24 |
| personal papers and records to the
extent the agent deems | 25 |
| relevant for purposes of this Section. This Section shall not | 26 |
| apply to any Totten Trust, Payable on Death Account, or | 27 |
| comparable trust account arrangement where the terms of such | 28 |
| trust are contained entirely on the financial institution's | 29 |
| signature card insofar as an agent acting under a power of | 30 |
| attorney executed in accordance with this Act shall be | 31 |
| permitted to withdraw income or principal from such account if | 32 |
| the power of attorney grants the agent authority to conduct |
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| financial institution transactions on the principal's behalf | 2 |
| and the agent's authority to access such account is not | 3 |
| expressly limited or withheld in the agency.
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| (Source: P.A. 85-701.)
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| (755 ILCS 45/3-4) (from Ch. 110 1/2, par. 803-4)
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| Sec. 3-4. Explanation of powers granted in the statutory | 7 |
| short form power
of attorney for property. This Section defines | 8 |
| each category of powers
listed in the statutory short form | 9 |
| power of attorney for property and the
effect of granting | 10 |
| powers to an agent. When the title of any of the
following | 11 |
| categories is retained (not struck out) in a statutory property
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| power form, the effect will be to grant the agent all of the | 13 |
| principal's
rights, powers and discretions with respect to the | 14 |
| types of property and
transactions covered by the retained | 15 |
| category, subject to any limitations
on the granted powers that | 16 |
| appear on the face of the form. The agent will
have authority | 17 |
| to exercise each granted power for and in the name of the
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| principal with respect to all of the principal's interests in | 19 |
| every type of
property or transaction covered by the granted | 20 |
| power at the time of
exercise, whether the principal's | 21 |
| interests are direct or indirect, whole
or fractional, legal, | 22 |
| equitable or contractual, as a joint tenant or tenant
in common | 23 |
| or held in any other form; but the agent will not have power | 24 |
| under
any of the statutory categories (a) through (o) to make | 25 |
| gifts of the
principal's property, to exercise powers to | 26 |
| appoint to others or to change
any beneficiary whom the | 27 |
| principal has designated to take the principal's
interests at | 28 |
| death under any will, trust, joint tenancy, beneficiary form
or | 29 |
| contractual arrangement. The agent will be under no duty to | 30 |
| exercise
granted powers or to assume control of or | 31 |
| responsibility for the
principal's property or affairs; but | 32 |
| when granted powers are exercised, the
agent will be required | 33 |
| to use due care to act for the benefit of
the principal in | 34 |
| accordance with the terms of the statutory property power
and | 35 |
| will be liable for negligent exercise. The agent may act in |
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| person or
through others reasonably employed by the agent for | 2 |
| that purpose and will
have authority to sign and deliver all | 3 |
| instruments, negotiate and enter
into all agreements and do all | 4 |
| other acts reasonably necessary to implement
the exercise of | 5 |
| the powers granted to the agent.
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| (a) Real estate transactions. The agent is authorized to: | 7 |
| buy,
sell, exchange, rent and lease real estate (which term | 8 |
| includes, without
limitation, real estate subject to a land | 9 |
| trust and all beneficial
interests in and powers of direction | 10 |
| under any land trust); collect all
rent, sale proceeds and | 11 |
| earnings from real estate; convey, assign and
accept title to | 12 |
| real estate; grant easements, create conditions and release
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| rights of homestead with respect to real estate; create land | 14 |
| trusts and
exercise all powers under land trusts; hold, | 15 |
| possess, maintain, repair,
improve, subdivide, manage, operate | 16 |
| and insure real estate; pay, contest,
protest and compromise | 17 |
| real estate taxes and assessments; and, in general,
exercise | 18 |
| all powers with respect to real estate which the principal | 19 |
| could
if present and under no disability.
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| (b) Financial institution transactions. The agent is | 21 |
| authorized to:
open, close, continue and control all accounts | 22 |
| and deposits in any type of
financial institution (which term | 23 |
| includes, without limitation, banks,
trust companies, savings | 24 |
| and building and loan associations, credit unions
and brokerage | 25 |
| firms); deposit in and withdraw from and write checks on any
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| financial institution account or deposit; and, in general, | 27 |
| exercise all
powers with respect to financial institution | 28 |
| transactions which the
principal could if present and under no | 29 |
| disability. This authorization shall also apply to any Totten | 30 |
| Trust, Payable on Death Account, or comparable trust account | 31 |
| arrangement where the terms of such trust are contained | 32 |
| entirely on the financial institution's signature card, | 33 |
| insofar as an agent shall be permitted to withdraw income or | 34 |
| principal from such account, unless this authorization is | 35 |
| expressly limited or withheld under paragraph 2 of the form | 36 |
| prescribed under Section 3-3. This authorization shall not |
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| apply to accounts titled in the name of any trust subject to | 2 |
| the provisions of the Trusts and Trustees Act, for which | 3 |
| specific reference to the trust and a specific grant of | 4 |
| authority to the agent to withdraw income or principal from | 5 |
| such trust is required pursuant to Section 2-9 of the Illinois | 6 |
| Power of Attorney Act and subsection (n) of this Section.
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| (c) Stock and bond transactions. The agent is authorized | 8 |
| to: buy
and sell all types of securities (which term includes, | 9 |
| without limitation,
stocks, bonds, mutual funds and all other | 10 |
| types of investment securities
and financial instruments); | 11 |
| collect, hold and safekeep all dividends,
interest, earnings, | 12 |
| proceeds of sale, distributions, shares, certificates
and | 13 |
| other evidences of ownership paid or distributed with respect | 14 |
| to
securities; exercise all voting rights with respect to | 15 |
| securities in person
or by proxy, enter into voting trusts and | 16 |
| consent to limitations on the
right to vote; and, in general, | 17 |
| exercise all powers with respect to
securities which the | 18 |
| principal could if present and under no disability.
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| (d) Tangible personal property transactions. The agent is
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| authorized to: buy and sell, lease, exchange, collect, possess | 21 |
| and take
title to all tangible personal property; move, store, | 22 |
| ship, restore,
maintain, repair, improve, manage, preserve, | 23 |
| insure and safekeep tangible
personal property; and, in | 24 |
| general, exercise all powers with respect to
tangible personal | 25 |
| property which the principal could if present and under no | 26 |
| disability.
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| (e) Safe deposit box transactions. The agent is authorized | 28 |
| to:
open, continue and have access to all safe deposit boxes; | 29 |
| sign, renew,
release or terminate any safe deposit contract; | 30 |
| drill or surrender any safe
deposit box; and, in general, | 31 |
| exercise all powers with respect to safe
deposit matters which | 32 |
| the principal could if present and under no disability.
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| (f) Insurance and annuity transactions. The agent is | 34 |
| authorized to:
procure, acquire, continue, renew, terminate or | 35 |
| otherwise deal with any
type of insurance or annuity contract | 36 |
| (which terms include, without
limitation, life, accident, |
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| health, disability, automobile casualty,
property or liability | 2 |
| insurance); pay premiums or assessments on or
surrender and | 3 |
| collect all distributions, proceeds or benefits payable under
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| any insurance or annuity contract; and, in general, exercise | 5 |
| all powers
with respect to insurance and annuity contracts | 6 |
| which the principal could
if present and under no disability.
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| (g) Retirement plan transactions. The agent is authorized | 8 |
| to:
contribute to, withdraw from and deposit funds in any type | 9 |
| of retirement
plan (which term includes, without limitation, | 10 |
| any tax qualified or
nonqualified pension, profit sharing, | 11 |
| stock bonus, employee savings and
other retirement plan, | 12 |
| individual retirement account, deferred compensation
plan and | 13 |
| any other type of employee benefit plan); select and change
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| payment options for the principal under any retirement plan; | 15 |
| make rollover
contributions from any retirement plan to other | 16 |
| retirement plans or
individual retirement accounts; exercise | 17 |
| all investment powers available
under any type of self-directed | 18 |
| retirement plan; and, in general, exercise
all powers with | 19 |
| respect to retirement plans and retirement plan account
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| balances which the principal could if present and under no | 21 |
| disability.
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| (h) Social Security, unemployment and military service | 23 |
| benefits.
The agent is authorized to: prepare, sign and file | 24 |
| any claim or application
for Social Security, unemployment or | 25 |
| military service benefits; sue for,
settle or abandon any | 26 |
| claims to any benefit or assistance under any
federal, state, | 27 |
| local or foreign statute or regulation; control, deposit to
any | 28 |
| account, collect, receipt for, and take title to and hold all | 29 |
| benefits
under any Social Security, unemployment, military | 30 |
| service or other state,
federal, local or foreign statute or | 31 |
| regulation; and, in general, exercise
all powers with respect | 32 |
| to Social Security, unemployment, military service
and | 33 |
| governmental benefits which the principal could if present and | 34 |
| under no disability.
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| (i) Tax matters. The agent is authorized to: sign, verify | 36 |
| and file
all the principal's federal, state and local income, |
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| gift, estate, property
and other tax returns, including joint | 2 |
| returns and declarations of
estimated tax; pay all taxes; | 3 |
| claim, sue for and receive all tax refunds;
examine and copy | 4 |
| all the principal's tax returns and records; represent the
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| principal before any federal, state or local revenue agency or | 6 |
| taxing body
and sign and deliver all tax powers of attorney on | 7 |
| behalf of the principal
that may be necessary for such | 8 |
| purposes; waive rights and sign all
documents on behalf of the | 9 |
| principal as required to settle, pay and
determine all tax | 10 |
| liabilities; and, in general, exercise all powers with
respect | 11 |
| to tax matters which the principal could if present and under | 12 |
| no disability.
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| (j) Claims and litigation. The agent is authorized to: | 14 |
| institute,
prosecute, defend, abandon, compromise, arbitrate, | 15 |
| settle and dispose of
any claim in favor of or against the | 16 |
| principal or any property interests of
the principal; collect | 17 |
| and receipt for any claim or settlement proceeds and
waive or | 18 |
| release all rights of the principal; employ attorneys and | 19 |
| others
and enter into contingency agreements and other | 20 |
| contracts as necessary in
connection with litigation; and, in | 21 |
| general, exercise all powers with
respect to claims and | 22 |
| litigation which the principal could if present and
under no | 23 |
| disability.
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| (k) Commodity and option transactions. The agent is | 25 |
| authorized to:
buy, sell, exchange, assign, convey, settle and | 26 |
| exercise commodities
futures contracts and call and put options | 27 |
| on stocks and stock indices
traded on a regulated options | 28 |
| exchange and collect and receipt for all
proceeds of any such | 29 |
| transactions; establish or continue option accounts
for the | 30 |
| principal with any securities or futures broker; and, in | 31 |
| general,
exercise all powers with respect to commodities and | 32 |
| options which the
principal could if present and under no | 33 |
| disability.
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| (1) Business operations. The agent is authorized to: | 35 |
| organize or
continue and conduct any business (which term | 36 |
| includes, without limitation,
any farming, manufacturing, |
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| service, mining, retailing or other type of
business operation) | 2 |
| in any form, whether as a proprietorship, joint
venture, | 3 |
| partnership, corporation, trust or other legal entity; | 4 |
| operate,
buy, sell, expand, contract, terminate or liquidate | 5 |
| any business; direct,
control, supervise, manage or | 6 |
| participate in the operation of any business
and engage, | 7 |
| compensate and discharge business managers, employees, agents,
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| attorneys, accountants and consultants; and, in general, | 9 |
| exercise all
powers with respect to business interests and | 10 |
| operations which the principal
could if present and under no | 11 |
| disability.
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| (m) Borrowing transactions. The agent is authorized to: | 13 |
| borrow
money; mortgage or pledge any real estate or tangible or | 14 |
| intangible
personal property as security for such purposes; | 15 |
| sign, renew, extend, pay
and satisfy any notes or other forms | 16 |
| of obligation; and, in general,
exercise all powers with | 17 |
| respect to secured and unsecured borrowing which
the principal | 18 |
| could if present and under no disability.
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| (n) Estate transactions. The agent is authorized to: | 20 |
| accept,
receipt for, exercise, release, reject, renounce, | 21 |
| assign, disclaim, demand,
sue for, claim and recover any | 22 |
| legacy, bequest, devise, gift or other
property interest or | 23 |
| payment due or payable to or for the principal; assert
any | 24 |
| interest in and exercise any power over any trust, estate or | 25 |
| property
subject to fiduciary control; establish a revocable | 26 |
| trust solely for the
benefit of the principal that terminates | 27 |
| at the death of the principal and
is then distributable to the | 28 |
| legal representative of the estate of the
principal; and, in | 29 |
| general, exercise all powers with respect to estates and
trusts | 30 |
| which the principal could if present and under no disability;
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| provided, however, that the agent may not make or change a will | 32 |
| and may not
revoke or amend a trust revocable or amendable by | 33 |
| the principal or require
the trustee of any trust for the | 34 |
| benefit of the principal to pay income or
principal to the | 35 |
| agent unless specific authority to that end is given, and
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| specific reference to the trust is made, in the statutory |
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| property power form.
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| (o) All other property powers and transactions. The agent | 3 |
| is
authorized to: exercise all possible powers of the principal | 4 |
| with respect
to all possible types of property and interests in | 5 |
| property, except to the
extent the principal limits the | 6 |
| generality of this category (o) by striking
out one or more of | 7 |
| categories (a) through (n) or by specifying other
limitations | 8 |
| in the statutory property power form.
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| (Source: P.A. 85-701.)
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