In a prior post, I laid out the details of a

and the need to have this document ready to go during the current COVID-19 crisis. Please see that post for a detailed explanation of how POAs work and the things to keep in mind when executing those forms.

This post briefly discusses the importance of having similar documents in place that allow for your financial assets to be managed and protected in the event you are incapacitated.

If you own real estate, have a bank account or control any other kind of asset, you should designate an “agent” to step in and help manage these things if you are unable to do so. This will help ensure that you and your family’s finances will be properly taken care during any type of medical emergency.

It is important to put your choice of agent in writing. You may use the statutory form or another type of form, as long as it meets the legal requirements of Illinois.

The selection of your agent should be considered carefully, as your agent will have the ultimate decision-making authority once this document goes into effect, in most instances after you are no longer able to make your own decisions. They will be taking care of things like paying the mortgage, taking care of tax payments, or selling property if that needs to be done.

If you become unable to make decisions and manage your financial affairs, your economic well-being can be placed in major jeopardy. If these things are not being carefully managed, foreclosures or evictions could be filed, credit damage may occur and stock holdings could be greatly devalued.

You may decide to change your agent and revoke his or her appointment at any time while you are still competent. If you do, tell someone who is at least 18 years old that you have changed your mind and/or destroy your document and any copies. If you wish, fill out a new form and make sure everyone you gave the old form to has a copy of the new one, including, but not limited to, your agents and your attorney if you have one.