In the latest Trusts and Estates newsletter, Mary Cascino flags an unintended and unwelcome byproduct of the new POA Act, which took effect July 1, and proposes some language to remedy the problem.
The new Act "revises the statutory form in Section 3.3(c)...to state in paragraph 1 of the form: 'I...hereby revoke all prior powers of attorney...,'" Cascino writes. The problem? That language can be read to revoke not only prior statutory POAs but also routine limited agencies, including "special or limited powers of attorney such as those on file at a bank, investment house or corporation records." Not good. She recommends that lawyers avoid trouble by adding the word "statutory" to the new statutory form so it reads thusly: "I...hereby revoke all prior statutory powers of attorney...."
Cascino notes that HB 1712, passed by the General Assembly but not yet signed by the governor, is designed to cure the problem by "identifying powers of attorney that would be excluded from such revocation...." But it won't take effect until January 1, 2012, assuming Governor Quinn signs it as expected. Her proposed fix would cover the gap between 7/1/11 and 1/1/12.