How to Challenge Transfers Made Under a Power of Attorney in Wisconsin

Short answer: Yes — you can challenge transfers made under a power of attorney (POA) if you reasonably suspect your grandparent lacked the mental capacity when the POA was signed or when the transactions occurred. In Wisconsin this typically means asking a circuit court to set aside transfers, remove or discipline the agent, freeze assets, and obtain restitution. This article explains the legal grounds, the evidence courts consider, likely remedies, and practical steps to protect assets.

Legal basis under Wisconsin law

Wisconsin’s statutory framework for powers of attorney is in Chapter 244 of the Wisconsin Statutes. That chapter governs how a POA is created, the agent’s authority, and third-party reliance: Wis. Stat. ch. 244. If an agent wrongfully takes money or property, criminal and civil remedies can apply; for example, theft statutes such as Wis. Stat. § 943.20 address theft and may apply to misappropriation.

Grounds for challenging transfers

Court challenges typically assert one or more of the following grounds:

• Lack of capacity at execution of the POA: The principal must have had the mental capacity required to understand the nature and consequences of signing the POA. If your grandparent could not understand what they were signing, the POA can be voided.
• Lack of capacity at the time of the transfers: Even if the POA was validly executed, a court can void transactions made when the principal lacked capacity.
• Undue influence or fraud: If the agent or someone else pressured, deceived, or coerced the principal into signing the POA or making transfers, the court may set aside the document or transfers.
• Exceeding authority: If the agent acted outside the authority given by the POA, those transfers can be reversed.
• Revocation: If the principal revoked the POA before the transfers and the agent nevertheless acted, the transfers can be challenged.

Who decides and what will the court look at?

A Wisconsin circuit court decides these disputes. The court will examine:

• The POA document itself and whether it met required formalities (signatures, witnesses, notarization where applicable).
• Medical records, physician or neuropsychological reports, and contemporaneous notes showing cognitive status at the relevant time.
• Testimony from witnesses present when the POA was signed or during the transactions.
• Patterns in the agent’s behavior: large or unusual transfers, secrecy, rapid depletion of assets, or gifts inconsistent with the principal’s prior wishes.
• Bank records, canceled checks, wire instructions, and other financial records documenting the transfers.

Typical remedies the court can order

Possible court orders include:

• Setting aside or rescinding transfers made while the principal lacked capacity.
• Ordering restitution to the principal or the principal’s estate.
• Removing or restricting the agent’s authority and appointing a conservator/guardian or successor agent.
• Freezing or placing temporary holds on assets to prevent further dissipation while the case proceeds (preliminary injunction or restraining order).
• Referring criminal conduct for prosecution under theft or fraud statutes.

Practical steps to take right away

Time matters. If you believe improper transfers occurred, do the following quickly:

• Preserve evidence: obtain copies of bank statements, canceled checks, wire receipts, and the POA document.
• Get medical records: ask the physician or facility for records showing cognitive tests, diagnoses, or notes around the time the POA was signed or when transfers occurred.
• Collect witness statements: contact people who saw the principal at the POA signing or who observed the agent’s conduct.
• Contact the financial institution: report suspicious transactions and ask if they can freeze accounts or put a hold while you investigate. Banks often have internal procedures for suspected elder-financial-abuse situations.
• Consider filing in circuit court: a petition can ask for an immediate temporary restraining order to stop further transfers and preserve assets while the court evaluates the claim.
• Report potential criminal abuse: if you suspect theft or fraud, you may report it to local law enforcement for possible criminal investigation under state theft statutes (Wis. Stat. § 943.20).

What evidence is most persuasive?

Courts give weight to contemporaneous medical evidence (e.g., cognitive test scores, physician notes), credible eyewitness accounts, and documentary proof of the transfers. The timing of the POA, sudden changes in financial patterns, or deviation from previously expressed wishes also strengthen a challenge.

Who can bring a challenge?

Typically close family members, the principal (if capable), the principal’s legal representative, or an interested party (including the state or a creditor in some instances) can petition the court. If your grandparent is still alive but incapacitated, a guardian or conservator may be needed to pursue claims on their behalf.

When to contact an attorney

Challenging transfers under a POA often involves complex facts and strict procedural rules. Consult an attorney who handles elder law, probate, guardianship, or civil litigation in Wisconsin as soon as possible. A lawyer can help you evaluate evidence, prepare a petition to the circuit court, seek emergency relief, and, if needed, pursue civil damages or work with prosecutors.

Helpful links

• Wisconsin Statutes Chapter 244 — Power of Attorney
• Wis. Stat. § 943.20 — Theft (criminal statute that may apply to misappropriation)
• Wisconsin Court System — General information and how to file

Helpful Hints

• Act quickly: assets can disappear fast. Ask the bank to preserve records and consider a court freeze.
• Document everything: keep a timeline of suspicious contacts, all copies of financial records, and names of witnesses.
• Look for red flags: sudden account closures, new payees, large gifts to the agent, or transfers inconsistent with the principal’s past behavior are warning signs.
• Medical records matter most: obtain physician notes, hospital records, and cognitive test results dated before or at the time of the POA and transfers.
• Third parties (banks, brokerages) may have obligations under Chapter 244 when presented with a POA; raise concerns with them in writing and keep copies.
• Preserve originals when possible: provide copies to your attorney but keep originals of the POA and key documents safe.

Final note and disclaimer

This article provides general information about challenging transfers under a power of attorney in Wisconsin and does not constitute legal advice. Laws change and each situation is different. For advice tailored to your circumstances, consult a licensed attorney in Wisconsin who handles elder law, probate, or civil litigation.