A new law in Wisconsin clarifies rules governing durable powers of attorney for finances, also known as a “POA.”
“In the past, some banks and other financial institutions had their own forms they wanted you to use even if you prepared a document with an attorney,” said attorney Greg Bonney. “Now there is a new statutory form allowing you to appoint a person to handle financial matters for you and rules determining when a bank or other financial institution may refuse to recognize a POA.”
Under the law:
- The POA may be effective immediately or activated at some point in the future, such as upon incapacity.
- Banks and other financial institutions cannot refuse to recognize a POA simply because it was signed many years ago or because it is not their own form.
- The authority granted under the POA continues until you die or revoke it.
- Co-agents may be named with the authority to act independently.
- The POA is revoked upon a divorce, legal separation or termination of a domestic partnership if your relationship with the agent has ended.
For more information on estate planning, contact Greg Bonney at 608-784-5678.