Wisconsin — What Financial Powers Can a Power of Attorney Give an Agent?

Detailed answer — what authority a financial POA can give an agent

Under Wisconsin law, a person who creates a financial power of attorney (the principal) can grant another person (the agent or attorney-in-fact) a broad set of powers to manage the principal’s financial affairs. The governing rules and default protections are in the Wisconsin statutes on powers of attorney (see Wis. Stat. ch. 244: https://docs.legis.wisconsin.gov/statutes/statutes/244).

Common authorities you can give an agent include:

• Banking and cash management. Access and manage bank and credit union accounts, deposit and withdraw funds, endorse checks, open and close accounts, and perform online transactions.
• Bill payment and household expenses. Pay routine bills, mortgage or rent payments, property taxes, utilities, and medical bills using the principal’s funds.
• Real estate transactions. Buy, sell, refinance, lease, and manage real property owned by the principal, if the POA specifically grants real estate authority.
• Investment and securities transactions. Buy, sell, and trade stocks, bonds, mutual funds, and other financial instruments; manage brokerage accounts; and direct investment advisors.
• Business operations. Operate, buy, sell, or close the principal’s business interest, sign business documents, and manage payroll and contracts, if the POA names business powers.
• Claims, litigation, and legal matters. Pursue or defend lawsuits, hire attorneys, and settle claims on the principal’s behalf related to finances.
• Tax matters. Prepare, sign, and file federal and state tax returns, pay taxes, and handle audits or disputes with tax authorities.
• Benefits and retirement accounts. Manage retirement plans, pensions, and certain benefits; however, some public benefits programs (like Social Security or certain public benefits) may require separate procedures or appointment of a representative payee.
• Insurance and claims. File and manage insurance claims, sign related documents, and obtain policy benefits for the principal.
• Trust and estate-related actions. Create, modify, or terminate trusts or transfer assets into or out of trusts only if the POA expressly authorizes such acts.
• Digital assets and records. Access electronic accounts and digital records if the document grants access and follows applicable law.

Important limitations and rules to know:

• Authority depends on what the document says. Wisconsin law lets you tailor the POA. The agent’s authority is only as broad as the principal grants it in the signed document. To avoid ambiguity, list specific powers you want to give.
• Some actions require express authorization. Certain powers—such as making gifts, creating or changing trusts, or changing beneficiary designations—typically require clear, express language in the POA to be valid. If the document does not say so, the agent likely cannot make those decisions.
• Durability and incapacity. A POA can be durable, meaning it remains effective if the principal becomes incapacitated. To continue after incapacity, the document must state that the authority survives the principal’s incapacity. See Wis. Stat. ch. 244 for the rules governing when a POA becomes effective and whether it remains durable: Wis. Stat. ch. 244.
• Fiduciary duties. An agent must act in the principal’s best interests, avoid conflicts of interest, keep records, and follow any instructions in the POA. Wisconsin imposes duties on agents under the POA statutes; the agent must act loyally, prudently, and only within granted authority.
• Third-party acceptance. Banks, brokers, and government agencies may ask to see the original POA, require notarization, or refuse to accept a POA they view as unclear. Some institutions have their own POA forms. If a third party refuses, you may need legal help or a court order.
• Effect of guardianship or death. If a court later appoints a guardian or conservator for the principal, that appointment typically supersedes the agent’s authority. The POA ends when the principal dies; the agent has no authority to act for a deceased person.

Example scenarios (hypotheticals):

• After a serious stroke, a principal becomes mentally unable to manage finances. If the POA is durable and includes banking and bill-paying powers, the agent can keep paying the mortgage, manage checking accounts, and handle tax filings.
• A principal who travels frequently gives a POA with real estate authority. While away, the agent sells an investment property and deposits proceeds into the principal’s accounts and pays related taxes—provided the POA expressly allows real estate sales and tax transactions.
• A POA that does not authorize gifts will not allow the agent to transfer money to the agent’s own family as gifts. To permit gifts, the principal must explicitly include a gifting clause in the document.

If you want specific language to grant or limit powers, or if complex transactions (like business sale, large gifts, or trust changes) are possible, talk with an attorney to draft the POA so the authority is clear and enforceable under Wisconsin law.

Helpful hints — practical steps and protections

• Choose an agent you trust. The agent will have substantial control over your money if you lose capacity.
• Consider successor agents to act if your first agent can’t or won’t serve.
• Be specific in the document. List powers you want to grant and any express limits (for example, no gifts, or only limited real estate transactions).
• Include a durable clause if you want the POA to continue after incapacity. Without it, many POAs end when you become unable to manage your affairs.
• Keep the original signed POA in a safe but accessible place. Give copies to your agent, backup agents, and your lawyer. Some banks require the original or a certified copy.
• Notify banks, brokerages, and other institutions in advance. Ask what they require to accept a POA (notarization, specific wording, or use of their form).
• Limit authority when appropriate. For example, require agent to obtain independent appraisals for high-value asset sales or court approval for certain transfers.
• Keep records. Instruct your agent to keep receipts and records of all transactions and provide regular accountings to a trusted family member or third party if you wish.
• Know how public benefits are handled. For Social Security and some public benefits, a POA may not be enough; an appointed representative payee or other process could be required.
• If in doubt, consult a Wisconsin attorney to draft or review your POA and ensure it aligns with Wis. Stat. ch. 244 (https://docs.legis.wisconsin.gov/statutes/statutes/244).