Hospice Illinois Blog

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

Sometimes a power of attorney is not the best way to insure that someone you choose will be ready to help you when you need it.

In these situations a better choice may be to set up a trust.

A trust can have, built into it, helpers who are able to help you when you are unable to visit the bank on your own. The helpers named in a trust are known as trustees. The trustees you choose are much more able to assist you than the agent in a power of attorney.

You can be the trustee of your own trust. The successor trustees you pick are ready to help you when you need it.

Banks and brokerage firms do not get in the way of successor trustees in the same way they do with agents under powers of attorney

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

There are several important questions to consider when deciding whether the person you are considering is a good pick to be the agent under your power of attorney.

1. Will they do what I want them to do? If they will not carry out your wishes then do not pick them even if you may hurt their feelings.

2. Will they have the strength to do what needs to be done? If they are not able to deal with tough questions and tough people who will try to sway their minds then do not pick them.

3. Are they good with money? If they can not balance their own checkbook they are not likely to balance yours. If they do not keep good records then they will get themselves into trouble when they lose track of your money.

4. Will they consider the job to be a burden? If they look at this as a burden then they will not pay enough attention to your finances.

5. Will they give in to outside influences? If the porson you pick is married to someone you do not want involved in your affairs then do not pick them. You do not want them to choose between their duty to you and their spouse.

6. What happens when the person you pick becomes ill themselves? You must pick a back-up agent to serve if your first choice is not available.

If you have no one who fits all the requirements then you still have an option.

Pick the person who is closest to the ideal then pair them with a professional.

A trust company can lend expert advice to the person you believe has your best interest at heart. When a family works with a professional trustee they have the perfect reason defense against people who would ask them to do the wrong thing. “The trust company is in charge of that”, is the easy way for them to get out of tight situations.

In any case we recommend that a trust company be named as a back-up agent against the day when the person you have named is unable to perform the task.

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

At one time a power of attorney and a will were all the estate plan that most people needed. Today this no longer true.

Back in the 1990’s part of the federal government made a new rule that resulted in powers of attorney which are more than 90 days old to not be honored by brokerage firms, mutual fund companies, and most recently by banks.

There is no law that says a bank or other financial company can ignore or refuse to take your power of attorney. They still often refuse to allow the use of an old power of attorney document. These financial institutions would like your chosen agent to go to court. They would like a judge to tell them that they must follow the instructions of your agent.

If this happens and they make a mistake or the power of attorney was revoked in the past then the financial institution is off the hook.

All of this makes a financial power of attorney less helpful than it once was.

I still recommend that everyone have a power of attorney but it can no longer be relied upon as the centerpiece of your estate plan

By Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com 773-905-1193

The information in this website is accurate to the best of my knowledge. It reflects the laws in the State of Illinois at the time the pages were written. Every effort has been made to make them readable and understandable to non-lawyers because of this they are necessarily general in nature.

Visiting this website does not create a lawyer-client relationship. The only way to become a client is for us to meet personally and discuss whether I am the right lawyer to work with you on your plans for the future. I also need to satisfy myself that your interests do not conflict with my duty to any of my existing clients. This sort of planning and analysis is not easily done by email or by phone.

The information in this site is designed to get you started on the planning process. You should always check with a lawyer before signing any legal documents. Any sample forms found on this sight are for reference only since I can not control how they are completed nor how they are executed.

I am licensed to practice law in Illinois. There are important differences between Illinois laws and those of other states. If you are a resident of another state please consult an attorney licensed to practice law in your home state. If you are not currently working with a lawyer you may want to call your state bar association.

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