Handbook Excerpt 2 April 2026

Reasonable and Unreasonable Causes for Third Parties To Refuse To Honor a Power of Attorney for Property

In response to frequent refusals to honor powers of attorney for property by third parties, especially financial institutions, the Illinois General Assembly enacted P.A. 103-994 (eff. Jan. 1, 2025), amending the Illinois Power of Attorney Act to establish safe harbors under which a third party must honor a power of attorney for property and under which a third party may refuse to honor a power of attorney for property. 755 ILCS 45/2-8(e), 755 ILCS 45/2-8(f).

Unreasonable Cause To Refuse To Honor

Section 2-8(e) of the Illinois Power of Attorney Act states that it is unreasonable for a third party to refuse to honor an Illinois statutory short form power of attorney for property if the only reason for the refusal is any of or more than one of the following:

1. The power of attorney is not on a form the third party receiving such power prescribes.
2. There has been a lapse of time since the execution of the power of attorney.
3. There is a lapse of time between the date of acknowledgment of the signature of the principal and the date of acceptance by the agent.
4. The power of attorney presented does not bear an original signature, original witness, or original notarization but is accompanied by an Agent’s Certification and Acceptance of Authority, Successor Agent’s Certification and Acceptance of Authority, or Co-Agent’s Certification and Acceptance of Authority bearing the original signature of the named agent.
5. The document appoints an entity as the agent. 755 ILCS 45/2-8(e).

Reasonable Cause To Refuse To Honor

Section 2-8(f) of the Act states that a third party may refuse to honor a power of attorney for property for the following reasons:

1. The agent refuses to provide an affidavit or properly executed Agent’s Certification and Acceptance of Authority, Successor Agent’s Certification and Acceptance of Authority, or Co-Agent’s Certification and Acceptance of Authority.
2. The agent refuses to provide a copy of the original document that is certified to be valid by an attorney, a court order, or governmental entity.
3. The third party, in good faith, refers the principal and the agent or a person acting for or with the agent to the local adult protective services unit.
4. There is actual knowledge or a reasonable basis for believing in the existence of a report by any person to the local adult protective services unit alleging physical or financial abuse, neglect, exploitation, or abandonment of the principal by the agent or a person acting for the agent.
5. There is actual knowledge of the principal’s death or a reasonable basis for believing the principal has died.
6. There is actual knowledge of the incapacity of the principal or a reasonable basis for believing the principal is incapacitated, if the power of attorney tendered is a nondurable power of attorney.
7. There is actual knowledge or a reasonable basis for believing that the principal was incapacitated at the time the power of attorney was executed.
8. There is actual knowledge or a reasonable basis for believing that (a) the power of attorney was procured through fraud, duress, or undue influence, or (b) the agent is engaged in fraud or abuse of the principal.
9. There is actual notice of the termination or revocation of the power of attorney or a reasonable basis for believing that the power of attorney has been terminated or revoked.
10. A title insurance company refuses to underwrite title insurance for a gift of real property made pursuant to a statutory short form power of attorney that does not contain express instructions or purposes of the principal with respect to gifts in Paragraph 3 of the statutory short form power of attorney.
11. The principal’s attorney refuses to provide a certificate that the power of attorney is valid.
12. There is a missing or incorrect signature, an invalid notarization, or an unacceptable power of attorney identification.
13. The third party (a) has filed a suspicious activity report as described in 31 U.S.C. §5318(g), with respect to the principal or agent; (b) believes in good faith that the principal or agent has a prior criminal history involving financial crimes; or (c) has had a previous, unsatisfactory business relationship with the agent due to or resulting in material loss to the third party, financial mismanagement by the agent, or litigation between the third party and the agent alleging substantial damages.
14. The third party has reasonable cause to suspect the abuse, abandonment, neglect, or financial exploitation of the principal if the principal is an eligible adult under the Adult Protective Services Act, 320 ILCS 20/1, et seq. 755 ILCS 45/2-8(f).