For many reasons, someone may have a Power Of Attorney to act on your behalf. This POA gives that person the authority to legally make financial or medical decisions, dependent on the conditions of the Power Of Attorney. Oftentimes, adult children have a POA to act on behalf of a parent who can no longer make decisions for themself, or who does not want the burden of managing their financial affairs.
What happens if you have an Illinois Power Of Attorney for someone who has property out of state? This can be very typical in the case of an adult child who has their parent’s POA, and that parent owns a vacation property in another state. Will that POA be respected? Does the agent have the authority to make decisions about the out-of-state property, such as to sell or refinance the property?
The authority given in a Power Of Attorney is recognized by all states, but each state has its own POA laws. Not all POA agents are automatically accepted to have the authority to act on the grantor’s behalf. Often, the authority of the POA is not recognized or accepted, such as:
• if the Power Of Attorney was granted a long time ago
• when the POA grantor and agent are from a different state
• if they believe the POA does not cover the transaction being taken
The decision on whether or not someone recognizes a Power Of Attorney created in another state depends on the financial institution or organization. It also depends on whether both states have adopted the Uniform Power of Attorney Act or if they haven’t, if the POA complies with the new state’s Power Of Attorney laws.
The Uniform Power of Attorney Act (UPOAA) is a set of laws governing the creation and scope of a Power Of Attorney, created by the Uniform Law Commission (ULC), a nonprofit organization of attorneys and judges from all states. 26 states have adopted the UPOAA: Alabama, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Idaho, Iowa, Maine, Maryland, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
This means that an Illinois Power Of Attorney might be challenged in another state. It is best to consult a Power Of Attorney lawyer to make sure that if you are the agent of a POA, or you want to grant POA authority to someone, your Illinois POA will be recognized in another state where you own property or other assets or have business interests.
When you work with an attorney to execute a Power of Attorney, they can explain the ramifications and advise you of the best type POA to fit your needs. To talk to an Illinois POA attorney contact Mario Godoy at the Estate & Probate Legal Group in Lombard Illinois at 630-864-5835. We serve Cook, Dupage, Kane, Lake, and Will counties.