A power of attorney (POA) allows you to appoint someone to act on your behalf. Wisconsin law defines a power of attorney as a written or other record that grants an agent the authority to act on behalf of the principal. The “principal” is the person who signs the power of attorney and grants authority to act on their behalf to someone else. The agent may also be referred to as an “Attorney-in-Fact,” but your agent does not need to be an attorney at law.
Powers of attorney can play a crucial role in financial and healthcare decision-making. However, these legal documents may grant broad powers to someone to act on your behalf. Anyone considering signing a power of attorney should consult with an experienced estate planning attorney to discuss their rights and interests.
If you have questions about a POA or want to create a power of attorney, contact Borakove Osman LLC for a consultation with our Madison & Dane County estate planning attorneys.
How Borakove Osman LLC Can Assist You with Matters Related to Powers of Attorney in Wisconsin
Our estate planning, probate, and trust administration lawyers at Borakove Osman LLC have extensive experience in all matters related to powers of attorney. Attorneys Shayna W. Borakove and Peter C. Osman are well-versed in the benefits of using powers of attorney in financial and healthcare matters, such as incapacity planning and elder planning. They understand the law and how to properly draft powers of attorney that are legally binding and specifically tailored to your needs and goals.
When you hire our top-rated South Central Wisconsin estate and business planning law firm, you can expect us to:
- Explain the various powers of attorney and how each POA impacts your rights and legal responsibilities
- Discuss how a power of attorney can be used in estate planning, elder law, incapacity planning, and business planning
- Offer a tailored strategy to accomplish your goals in signing a power of attorney
- Discuss the importance of choosing an agent who understands your wishes and will do what is in your best interest
- Guide you through signing a power of attorney
- Explain the process of revoking a power of attorney should you choose to do so in the future, and protecting yourself against POA abuse
A power of attorney has many advantages, but signing a POA without an attorney’s advice could result in legal problems. Get the information you need to make an informed decision about powers of attorney. Call Borakove Osman LLC to discuss your situation with a Madison & Dane County power of attorney lawyer.
What Is a Financial Power of Attorney?
A financial power of attorney appoints an agent to manage your financial affairs. The Uniform Power of Attorney for Finances and Property Act governs financial POAs in Wisconsin. There are several types of financial POAs you can choose from in Wisconsin:
General Power of Attorney
A general POA grants your agent the power to manage your finances. Unless you specifically restrict the agent’s powers, a power of attorney gives your agent the authority to engage in any legal or financial transaction on your behalf, including but not limited to:
- Filing tax returns
- Opening and closing financial accounts
- Withdrawing money and incurring debt
- Selling, purchasing, and mortgaging real estate
- Operating a business interest
- Managing investments
- Purchasing or cashing in life insurance policies
- Filing and/or settling lawsuits
- Paying bills and legal debts
A general power of attorney expires upon the person’s death or is revoked by the principal. In some states, a general power of attorney ceases if the principal becomes incapacitated. However, that is not the case in Wisconsin.
Durable Power of Attorney
A durable power of attorney does not become invalid if the principal suffers from a mental or physical condition that causes their impairment. Instead, the agent has the authority to continue managing the person’s financial affairs even though the person cannot speak for themselves.
Wisconsin law states that all powers of attorney are durable. Therefore, if you want the powers in your financial POA to terminate should you become incapacitated, you must state so in the document.
Limited Power of Attorney
A limited power of attorney grants an agent the authority to act on behalf of the principal in a specific financial matter. For example, you may grant a limited power of attorney to handle a real estate closing if you are unable to be present. The limited POA terminates when the agent completes the transaction.
What Is a Power of Attorney for Health Care?
You have the right to choose the type of health care you receive. However, an accident or illness may prevent you from speaking for yourself. A Health Care Power of Attorney allows you to appoint someone you trust as your health care agent to make health care decisions if you are unable to do so yourself.
A power of attorney for health care is different from a living will. A living will allows you to make your wishes known for life-sustaining treatments if you have a terminal condition or are in a vegetative state. It allows you to dictate whether you want to receive care that could prolong your life, such as a feeding tube.
A living will may include a health care power of attorney. Together, these documents are referred to as Advance Directives for Health Care.
Reasons to Consider Signing a Financial or Healthcare Power of Attorney
There are many reasons why someone may want to consider signing a power of attorney. Benefits of having a power of attorney include:
- Ensures someone you trust has decision-making authority to manage your finances if you cannot
- Avoids court intervention should you become incapacitated and require a guardianship
- Reduces stress for your family by providing clear instructions and authority for health care
- Provides peace of mind for you should you become ill or injured
- Allows flexible planning by tailoring a power of attorney to your specific needs and wishes
You may find several forms online for powers of attorney. Using a “fill-in-the-blank” form is unwise. The form may not meet Wisconsin requirements for a power of attorney.
Furthermore, you may inadvertently grant powers that you did not intend to grant or fail to give your agent the powers they need to carry out your wishes. It is best to work with an experienced Madison & Dane County estate planning attorney to draft a power of attorney.
Learn More About Powers of Attorney During a Consultation with Our Madison & Dane County Estate Planning Lawyers
Powers of attorney are useful tools that benefit individuals and families in numerous ways. Call Borakove Osman LLC to schedule a consultation with our Madison & Dane County power of attorney lawyers to learn more about POAs.