A power of attorney (POA) is a powerful estate planning tool in Wisconsin. While many people focus on Wills and trusts, it makes sense to also discuss POAs as you assess your options alongside an estate planning attorney in Madison. With guidance from a legal professional, you can get the most out of this estate planning tool while safeguarding your future and protecting your decision-making authority. What exactly is a power of attorney? Why do you need one? When should you begin the process?
A Power of Attorney Gives an Agent the Ability to Make Decisions on Your Behalf
When you create a Power of Attorney, you will designate an “agent” who can make a decision on your behalf. This agent might be a family member, a trusted friend, or anyone else whom you think should hold this responsibility. People have all kinds of reasons for creating powers of attorney, and these tools are not just reserved for elderly people or retirees.
What Are the Different Types of POAs in Wisconsin?
POAs are distinguished by the types of decisions they involve. Some POAs only give agents the right to make medical decisions on your behalf, while others only involve financial or legal decisions. You can create both types or focus specifically on one area.
POAs are also distinguished by the manner in which they go into effect. Some POAs go into effect immediately after you create them, giving your agent the right to make decisions on your behalf right away. Other POAs only go into effect after you become incapacitated, and these are called “springing POAs.”
You can also create a POA that ends when you become incapacitated, thereby preventing your agent from making decisions while you are unable to communicate your wishes. If you create a “standard POA” in Wisconsin, it is automatically “durable.” In other words, it goes into effect after signing and remains active even after you become incapacitated.
How Do I Know Whether I Need a POA in Wisconsin?
If you are concerned about what might happen if you ever become incapacitated, you might want to consider a POA. A durable POA ensures that even if you are unable to communicate your wishes, your agent can continue to manage your health care decision, your estate, or both.
For example, you might get into a car accident and fall into a coma. Who decides whether to remove you from life support? Who decides whether to donate your organs? What about blood transfusions or stem-cell-based treatments? What if you need to sell your home in order to pay for life-saving medical treatments, such as a brain surgery?
In these situations, people cannot guess at what you “would have wanted.” They must instead go with the default decision, which is often to do nothing at all. As a result, your home might fall into disrepair, with utility bills going unpaid. Your family might argue about whether to disconnect you from life support. A power of attorney solves this issue by designating a decisionmaker to act on your behalf.
POAs are popular among those who face heightened dementia risks. When a patient progresses into late-stage dementia, they may lose the ability to communicate, think clearly, and recognize their loved ones. As a result, they lose the “mental capacity” to legally make decisions about their finances or health care. With a springing power of attorney, a trusted agent can step in and start making these decisions.
That being said, POAs are not reserved for elderly individuals approaching serious or terminal illnesses. Young people can benefit from these estate planning tools as well. Virtually anyone can develop an incapacitating injury or illness at any stage of their life, and this can cause major issues for their surviving family members if no one is able to make important decisions.
Young business owners may be particularly interested in POAs. If they become incapacitated, there may be no one to run the business and make important daily decisions. As a result, the business may miss opportunities, fail to pay clients, and generally spiral downward.
Parents of young people (such as college students) may also be interested in POAs. A common step is to have your adult child create a POA after graduating from high school. With this approach, the parents retain decision-making authority if the child ever becomes incapacitated due to a car crash or other accident. If parents fail to take this step, no one will have any say in the adult child’s medical care once they become incapacitated.
Should I Choose a Springing Power of Attorney in Wisconsin?
A springing power of attorney is a common estate planning tool in Wisconsin. Many people are uncomfortable with giving an agent so much power over them while they are still alive. A springing power of attorney solves this issue by making sure that the agent only receives their power after you become incapacitated.
The only downside to consider is the delay in which doctors must legally declare a victim incapacitated. With a normal power of attorney, the agent can immediately start making decisions with no delay, as they retain their legal authority before and after incapacity.
How Do I Give My Agent Instructions?
You can include detailed instructions in your power of attorney form. It makes sense to envision as many potential scenarios as possible, including different medical diagnoses and financial challenges. For the most part, your agent is legally required to follow these directions.
Can an Estate Planning Lawyer in Madison Help Me?
An estate planning lawyer in Madison, Wisconsin, can explain powers of attorney in more detail. Although POAs can help many people achieve various estate planning goals, it is important to consider your unique circumstances when getting started. Online research may only provide basic, broad guidance without taking your personal situation into account. In contrast, you can address unique concerns and priorities during an actual conversation with a lawyer. Continue this dialogue by contacting Krause Estate Planning & Elder Law Center at 608-401-4759. You can also visit us online to learn more about our firm.