Power of Attorney for Finances and Property Information Sheet

1. What is a power of attorney for finances and property? A power of attorney for finances and property is a document that allows an individual to authorize someone else to make financial decisions. The person authorized to make financial decisions is called an agent. The person signing the document is the principal.

2. When does the agent become authorized to make financial decisions? There are three options.
A. Power of attorney becomes effective upon signing it and continues in effect even if the principal becomes disabled or incapacitated.
B. Power of attorney becomes effective only if the principal becomes disabled or incapacitated.
C. Power of attorney becomes effective upon signing it, but it ceases to be effective if the principal becomes disabled or incapacitated.

The principal continues to be able to make financial decisions. If the principal elects option A or option C, then both the principal and the agent will be able to make financial decisions.

3. What is considered an incapacity? An incapacity exists if the principal is unable to receive and evaluate information effectively or to communicate decisions to such an extent that the principal lacks the capacity to manage his or her decisions.

4. What information is needed to draft a power of attorney for finances and property?

A. Background information
1. Principal's name, address, date of birth, and social security number.
2. Agent's name and address.
3. Alternate agent's name and address.

B. Extent of agent's authority - The principal must decide whether to grant each of the following powers:
1. Payment of bills;
2. Banking;
3. Insurance;
4. Accounts (collecting debts owed to the principal);
5. Real Estate (manage and sell property, foreclose mortgages, etc.);
6. Borrowing;
7. Securities (buy and sell securities);
8. Income taxes (make and sign tax returns);
9. Trusts (transfer assets to a living trust established before the power of attorney for finances and property was executed);
10. Legal Actions (appear for principal or retain an attorney);
11. Professional assistance (hire accountants, attorneys, etc.);
12. General (do acts that principal would do if present);
13. Compensation (agent may receive payment for doing job if documents specifically authorize it);
14. Accounting (agent shall render accounting (monthly, quarterly, or annually) to principal while principal is alive and shall render final accounting after principal's death.);
15. Guardian (agent can be nominated as the guardian of the property if a guardian is ever needed.

5. How do I go about getting a power of attorney for finances and property? The first step is to meet with an attorney. The attorney will explain the legal significance of the form and then obtain the information necessary to draft the document. The attorney will then draft the document. The client will then review the document. If there are no objections, the client will come into the law office to sign the document before two witnesses. The agent and the alternate agent do not have to be at the signing. The document becomes effective upon the agent signing the form. The alternate agent can sign the form if it becomes necessary to appoint the alternate as the agent.

6. What should I do with the document after it has been signed? The original document should be kept in a safe place. If anyone needs to see the document, a copy can be provided to him or her. Make sure to keep the original. Wisconsin law clearly states that a photocopy is as valid as the original.

7. What if I decide that I no longer want the power of attorney for health care to be effective? The document can be revoked and invalidated in the following ways:
A. burn, tear, or otherwise destroy the document;
B. sign and date a written statement revoking the document; or
C. direct another person to destroy the document in your presence.