DURABLE POWER OF ATTORNEY FOR PROPERTY

(Illinois Financial Power of Attorney)

[// GUIDANCE: This template is drafted to comply with the Illinois Power of Attorney Act, 755 ILCS 45/ (the “Act”). It is not the statutory short‐form; instead, it is an expanded, practitioner-oriented instrument that incorporates all mandatory statutory notices and execution requirements while adding sophisticated risk-management and dispute-resolution features. Bracketed text should be customized for the particular client matter.]

TABLE OF CONTENTS

1. Document Header
2. Statutory Notices
3. Definitions
4. Grant of Authority & Scope of Powers
5. Limitations, Special Instructions & Durability
6. Agent Representations & Warranties
7. Agent Covenants & Standards of Conduct
8. Default; Removal; Remedies
9. Risk Allocation & Indemnification
10. Dispute Resolution
11. Miscellaneous / General Provisions
12. Revocation Procedures
13. Execution Block (Principal, Witness, Notary)
14. Agent Acceptance & Acknowledgment

1. DOCUMENT HEADER

1.1 Title. Durable Power of Attorney for Property (Illinois).
1.2 Date of Execution. Effective as of [EFFECTIVE DATE] (the “Effective Date”).
1.3 Principal. [PRINCIPAL LEGAL NAME], residing at [ADDRESS] (“Principal”).
1.4 Initial Agent. [AGENT LEGAL NAME], residing at [ADDRESS] (“Agent”).
1.5 Successor/Alternate Agents.
  a. First Successor: [NAME / N/A]
  b. Second Successor: [NAME / N/A]

[// GUIDANCE: If multiple co-agents will serve simultaneously, add a subsection specifying joint or independent action.]

1.6 Governing Law. This instrument is governed by and shall be construed in accordance with the laws of the State of Illinois, including the Act, 755 ILCS 45/.

2. STATUTORY NOTICES

2.1 Notice to the Individual Signing the Illinois Power of Attorney for Property

[Insert verbatim text required by 755 ILCS 45/3-3.]

2.2 Notice to Agent

[Insert verbatim text required by 755 ILCS 45/3-4.]

[// GUIDANCE: The Act mandates that both notices appear exactly as in the statute, immediately preceding the operative provisions. Do not alter statutory language.]

3. DEFINITIONS

The following capitalized terms shall have the meanings set forth below.

“Act” means the Illinois Power of Attorney Act, 755 ILCS 45/, as amended.
“Assets Under Management” means all property, accounts, and contract rights subject to this power at any time.
“Durable” has the meaning set forth in 755 ILCS 45/2-9; namely, the authority granted herein is not terminated by the Principal’s incapacity.
“Event of Default” has the meaning assigned in Section 8.1.
“Incapacity” means the Principal’s inability to manage property or business affairs as determined under 755 ILCS 45/2-3.
“Property” includes all real, personal, tangible, intangible, digital, and mixed property interests of the Principal, wherever located, whether now owned or hereafter acquired.
“State Probate Court” means the Circuit Court of the State of Illinois, Probate Division, in the county where venue is proper.

[// GUIDANCE: Add or delete definitions based on the engagement.]

4. GRANT OF AUTHORITY & SCOPE OF POWERS

4.1 General Grant. The Principal hereby authorizes the Agent to act for the Principal with respect to all matters concerning the Principal’s Property, subject to the limitations herein.

4.2 Enumerated Powers. Without limiting the generality of Section 4.1 and subject to Section 5, the Agent may:
a. Real Property Transactions
b. Tangible Personal Property Transactions
c. Stock, Bond & Securities Transactions
d. Banking & Other Financial Institution Transactions
e. Business Operating Transactions
f. Insurance & Annuity Transactions
g. Estate, Trust & Beneficiary Transactions
h. Retirement Plan Transactions
i. Tax Matters
j. Digital Assets Management
k. Claims & Litigation
l. Safe-Deposit & Vault Transactions
m. Personal & Family Maintenance

[// GUIDANCE: Each category may be expanded with subparagraphs if granular authority is required.]

4.3 Hot Powers Requiring Explicit Conferred Authority. Pursuant to 755 ILCS 45/3-4 and public policy, the Agent is specifically (check one):
☐ Authorized ☐ Not Authorized
(i) to create or modify trusts;
(ii) to make or revoke gifts;
(iii) to change beneficiary designations;
(iv) to disclaim or renounce property interests.

4.4 Incidental Authority. The Agent may take all reasonably necessary actions to carry out the foregoing, including engaging professionals, signing ancillary documents, and accessing safe-deposit boxes.

5. LIMITATIONS, SPECIAL INSTRUCTIONS & DURABILITY

5.1 Special Instructions. [SPECIAL INSTRUCTIONS OR “None.”]

5.2 Durability. This power is durable and shall not be affected by the Principal’s subsequent incapacity, per 755 ILCS 45/2-9.

5.3 Commencement. Authority becomes effective:
☐ Immediately upon execution, or
☐ Upon written determination of Incapacity by [ONE/TWO] licensed physician(s).

5.4 Termination. Authority terminates upon the earliest of:
a. Principal’s death;
b. Principal’s written revocation delivered pursuant to Section 12;
c. As otherwise required under the Act.

6. AGENT REPRESENTATIONS & WARRANTIES

6.1 Authority & Capacity. The Agent represents that the Agent:
a. Is at least 18 years of age and of sound mind;
b. Is not legally disqualified from serving;
c. Accepts fiduciary duties imposed by the Act and this instrument.

6.2 No Conflicts. The Agent represents that no conflict of interest presently exists that would materially impair the Agent’s ability to act in the Principal’s best interest.

7. AGENT COVENANTS & STANDARDS OF CONDUCT

7.1 Fiduciary Standard. The Agent shall act in good faith, with due care, competence, and diligence for the best interest of the Principal and in accordance with the Act.

7.2 Record-Keeping. The Agent shall maintain complete records, receipts, and disbursements relating to all transactions and shall render accounting within [30] days after written request from the Principal, a guardian, or an interested person as defined by 755 ILCS 45/2-10.

7.3 Co-Agents. If co-agents serve, they shall (check one):
☐ Act jointly unless emergency circumstances reasonably require unilateral action;
☐ Act independently, keeping each other reasonably informed.

7.4 Delegation. The Agent may delegate ministerial acts but may not delegate discretionary fiduciary decisions without prior written consent of the Principal (or court order).

7.5 Compensation & Reimbursement. The Agent is entitled to reasonable compensation and reimbursement of reasonable expenses from Assets Under Management, absent a written waiver.

8. DEFAULT; REMOVAL; REMEDIES

8.1 Events of Default. Any of the following constitute an “Event of Default”:
a. Breach of fiduciary duty;
b. Conversion or misapplication of assets;
c. Failure to provide an accounting within the time required;
d. Conviction of a felony;
e. Incapacity of Agent.

8.2 Notice & Cure. Upon written notice of default, the Agent shall have [15] days to cure, except for willful misconduct, which is not curable.

8.3 Remedies. If default is not cured, the Principal (or an interested person) may:
a. Remove the Agent and appoint a successor;
b. Seek injunctive relief or accounting in State Probate Court;
c. Recover damages, attorneys’ fees, and costs.

9. RISK ALLOCATION & INDEMNIFICATION

9.1 Indemnification of Agent. To the fullest extent permitted by law, the Principal shall indemnify and hold harmless the Agent from any claim, liability, or expense (including reasonable attorneys’ fees) arising from acts performed in good faith under this instrument, except for acts of willful misconduct or gross negligence. Liability is limited to Assets Under Management.

9.2 Exoneration of Third Parties. No third party relying in good faith on a certificate of Incapacity or on this instrument shall be liable to the Principal.

9.3 Insurance. The Principal authorizes purchase of fiduciary liability insurance at the expense of Assets Under Management.

10. DISPUTE RESOLUTION

10.1 Governing Law & Forum. This instrument is governed by Illinois law; exclusive venue lies in the State Probate Court.

10.2 Limited Arbitration. Except for requests for injunctive relief under Section 10.3, any dispute between the Principal (or representative) and Agent relating to past performance may be submitted to confidential binding arbitration administered by [ARBITRATION PROVIDER] under its commercial rules upon written agreement of the parties. No party is compelled absent such post-dispute agreement.

10.3 Injunctive Relief. The Probate Division retains jurisdiction to provide all equitable remedies, including temporary restraining orders and preliminary injunctions, to protect the Principal’s interests.

10.4 Jury Waiver. To the extent permitted by Illinois law and public policy, the parties waive trial by jury for any claim arising under this instrument; provided, however, that if such waiver is deemed unenforceable, this Section shall be severed without affecting the remaining provisions.

11. MISCELLANEOUS / GENERAL PROVISIONS

11.1 Amendment. The Principal may amend this instrument only by a subsequent writing executed with the same formalities.
11.2 Severability. Invalidity of any provision shall not affect the remaining provisions.
11.3 Successors & Assigns. All authority herein inures to the benefit of the Agent’s lawful successors.
11.4 Entire Agreement. This instrument, together with statutory notices, constitutes the entire agreement concerning the subject matter.
11.5 Counterparts; Electronic Signatures. This instrument may be executed in counterparts, including by electronic signature, each of which is an original and together one document.

12. REVOCATION PROCEDURES

12.1 Method of Revocation. The Principal may revoke this power at any time by:
a. Executing a written revocation; and
b. Delivering same to the Agent and any third party known to rely on this power.

12.2 Recording & Notice. If this instrument has been recorded, the revocation should likewise be recorded; failure to record does not affect third parties lacking actual notice.

12.3 Automatic Revocation. Appointment of a guardian of the Principal’s estate terminates the Agent’s authority per 755 ILCS 45/2-10.

13. EXECUTION BLOCK

PRINCIPAL

Signature: ____
Printed Name: ____
Date: ________

WITNESS

I declare that the Principal appeared to execute this instrument willingly, is personally known to me, and appeared to be of sound mind and under no duress.

Witness Signature: ___
Printed Name: ____
Address: _____
Date: _____

NOTARY PUBLIC

State of Illinois )
County of _ ) SS.

Subscribed, sworn, and acknowledged before me on this ___ day of ____, 20__, by [PRINCIPAL NAME], who is personally known to me or who produced satisfactory evidence of identity.

Notary Public Signature: ___
Printed Name: ____
My Commission Expires: _____

[Seal]

14. AGENT ACCEPTANCE & ACKNOWLEDGMENT

I, [AGENT NAME], have read the statutory “Notice to Agent,” accept the appointment as Agent, and agree to act in accordance with the terms of this Durable Power of Attorney for Property and the Act.

Agent Signature: ____
Printed Name: ____
Date: _________

[// GUIDANCE:
1. Attach copies of relevant IDs for recording, if desired.
2. If the document will be recorded (e.g., for real estate transactions), ensure all margin, font, and page-formatting rules of the recording county are satisfied.
3. Consider obtaining a physician’s affidavit if a springing trigger is selected.
4. Review local courthouse filing fees and procedural checklists when seeking judicial relief.]