Most people don’t worry about having certain legal documents created, and that is, until they need one. A power of attorney is one of those things that flies under the radar. However, it can become important at the exact moment life takes an unexpected turn. Planning for your power of attorney can make a difficult situation much easier for you and your family.
So, what is a power of attorney in Wisconsin, and when do you need one? Here are a few points to consider for your estate plan.
What Is a Power of Attorney?
A power of attorney (POA) allows you to give someone else the authority to act on your behalf. When you create this document, you are not giving up control of your life. Instead, you are choosing someone you trust to handle certain decisions if you cannot manage your affairs.
Depending on the document, that authority can be broad or very limited.
What Are the Most Common POA Types in Wisconsin?
In Wisconsin, there are two main types of powers of attorney people tend to use: financial and health care.
Power of Attorney for Finances & Property
This document allows your agent to handle financial matters on your behalf. That could include:
- Paying bills
- Managing bank accounts
- Handling real estate transactions
- Dealing with investments
For example, if you were recovering from surgery, your agent could keep everything on track financially.
Power of Attorney for Health Care
This document allows someone to make medical decisions for you if you’re unable to communicate your wishes. It can cover decisions, such as:
- Treatment choices
- Doctor selection
- Care options
In Wisconsin, many people will also pair it with a living will, which states their preferences for end-of-life care.
When Does a Power of Attorney Take Effect?
This will all depend on how the document is written. Some powers of attorney take effect immediately after they are signed. Others will only take effect when a specific event occurs, such as when a doctor determines that you are no longer able to make decisions for yourself.
You will need to think about the pros and cons. Some people prefer immediate authority for convenience, while others prefer to limit access unless it’s absolutely necessary.
Choosing the Right Person Is Important
One of the most important parts of creating a power of attorney is choosing the right agent.
You want someone you completely trust. They need to be responsible, organized, and capable of handling difficult decisions.
In some cases, people name more than one agent or choose a backup in case their first choice is unavailable.
What Happens without a Power of Attorney?
If you do not have a power of attorney in place and you become unable to make decisions, your family may have to go through a court process to obtain guardianship.
Unfortunately, guardianships can take time, involve legal fees, and require court oversight. Additionally, it can create stress in an already difficult situation. For that reason, you want to have a POA in place to help your family avoid that process.
Can You Change or Revoke It?
Yes. As long as you are mentally competent, you can change or revoke your power of attorney at any time. Life changes, and your legal documents should reflect that. You may want to review your POA periodically to make sure it still aligns with your wishes.
Power of Attorney Is an Important Part of Your Estate Plan
A power of attorney in Wisconsin is a powerful tool. This allows someone you trust to handle important decisions on your behalf. Whether that is managing finances or making medical choices, they are there to take the burden off your family and give some stability during uncertain times.
You may not need to use it right away but having it in place means you’re prepared for whatever comes next. At Collins Law Firm, we are ready to help you draft these important documents. Reach out to us today to discover how we can assist with all of your estate planning needs.