Power of Attorney

Understanding Durable Power of Attorney

A Durable Power of Attorney for Finances and Other Property is a legally binding document that grants another person, known as an agent, the authority to act on behalf of the principal, the person who grants this authority. This power of attorney can be general, giving broad decision-making power to the agent, or it can be limited, specifying certain actions the agent can take. Importantly, durable powers of attorney remain effective even if the principal becomes incapacitated, eliminating the need for court-appointed guardians or conservators in most cases.

A Power of Attorney for Healthcare, often referred to as a Healthcare Proxy or Medical Power of Attorney, is another essential document that appoints an agent to make medical decisions on your behalf if you become unable to do so. This document is separate from the Durable Power of Attorney for Finances and deals specifically with healthcare choices.

Reasons You Should Consider a Durable Power of Attorney

in Wisconsin

Considering the statistics that reveal one in two Americans will experience a period of prolonged incapacity during their lifetime, having a Durable Power of Attorney is crucial. If you become unable to manage your financial affairs without one, your family may need to initiate a time-consuming, expensive, and public process to appoint a guardian. This process involves legal proceedings, testimony from physicians, and personal appearances in court. Even if you have limited financial resources or jointly own property, there are numerous situations where specific legal authority granted by a power of attorney is necessary, such as accessing benefits, managing retirement plans, or making healthcare decisions.

Authorizing Agent Actions

for Wisconsin Durable Power of Attorney

A Durable Power of Attorney for Finances and Property empowers your agent to undertake various tasks on your behalf. These tasks may encompass handling bank accounts, paying bills, managing real estate, business matters, applying for public benefits, altering insurance policies, filing taxes, hiring professionals, making gifts, and even creating or transferring assets to a trust. Essentially, you can authorize your agent to perform nearly anything the law allows you to do yourself, tailored to your specific requirements and concerns.

Gifting Powers for Durable Power of Attorney

for Finances and Property in Wisconsin

Including a gifting power in your Durable Power of Attorney requires careful consideration. While it can be beneficial, it can also be risky if the agent acts dishonestly. Decisions regarding who the agent can gift to, under what circumstances, and the monetary limits should be clearly defined in the document. Consultation with a competent attorney is advised to navigate this aspect effectively.

Selecting the Right Agent

for Durable Power of Attorney

Choosing the right agent is paramount, with trustworthiness as the most crucial factor. You must have complete faith and trust in your agent’s honesty and loyalty. Availability, geographic proximity, knowledge, and experience are other essential considerations. Planning for agent succession is also advisable, ensuring the continuity of representation in case the initial agent becomes unavailable or unable to serve.

Protecting Against Abuse

with a Durable Power of Attorney

Safeguarding against abuse by your agent is vital. Methods include specifying the agent’s fiduciary duty in the document, requiring them to sign it, obtaining a bond, setting gift limitations, demanding regular accountings, and encouraging your agent to consult with your lawyer for better understanding of their responsibilities.