Planning for Pets While Living – Power of Attorney and Trust

Before delving into how to plan for your pet’s care once you pass, it is also worth considering how to plan for your pet while you are still living, but may be unable to care for them, such as during an unexpected hospital stay. This can be done via a Durable Power of Attorney aka a Financial Power of Attorney. This type of Power of Attorney allows you to designate someone as your agent so that they may handle different types of property you have. Yes, pets are considered property under the law, but at Wynn at Law, LLC, we know pets are so much more, a beloved family member, which is why we enjoy assisting people who want to plan for caring for a pet.

Most Financial Powers of Attorney give your agent power to handle your “personal” property and according to Wisconsin law, a pet counts as personal property. A general Financial Power of Attorney may be sufficient in a pinch, but at Wynn at Law, LLC, we can assist you with a better option. If the care of your pet is one of your primary concerns or if your pet has medical issues, we can aid you in additional language that should be included in your Power of Attorney to ensure that your agent will be able to seamlessly care for your pet. We specifically address your agent’s authority to board your pets, to authorize veterinarian care, and compensation for these endeavors, for instance.

If you have a trust and become incapacitated, your successor trustee may need to step in to help care for your pet. In this case, Wynn at Law, LLC can assist you in drafting specific language in your trust for caring for a pet. This will allow your trustee to step in and immediately care for your pet.

Life Care Centers for Pets

If you prefer to leave the care of your pet to an organization rather that an individual, you may want to consider a pet life care center. These are organizations that will agree to provide care for your pets after your passing. Some of these organizations require you to leave them a minimum cash gift via your estate plan in order to fund your pet’s care. This is an attractive option for many pet owners. Some organizations even offer grief therapy for your pet and agree to find your pet a new loving home.

If you would like to arrange for your pet’s care via one of these organizations upon your passing, you should first, research and consult with the organization of your choice to obtain their requirements. Second, meet with an attorney at Wynn at Law, LLC and we will assist you in memorializing your request pursuant to the organization’s requirements.

Diet and Medication Lists

One of the greatest gifts you can give to your pet’s future caregiver is clarity. Proactively maintaining a comprehensive diet and medication lists ensures that your pet’s caregiver can provide seamless continuity of care during an already stressful transition. This list should be as specific as possible and include things such as:

• precise dosages and delivery methods of medications if your pets take any,

• brand names and measurements of your pet’s food,

• known food allergies,

• preferred treats,

• vet information and copies of recent vaccinations, and

• microchip info if applicable.

Schedule a consultation with Wynn at Law, LLC today to discuss the estate planning process for you and your pet.

Planning for your pet’s care upon your passing is only one aspect of the estate planning process. For assistance with ensuring that you have a comprehensive estate plan in place, contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

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A Financial Power of Attorney (FPOA) also known as a “property power of attorney” or a “durable power of attorney” is a document that gives a specified person power over your finances while you are living. The person creating the FPOA is the “principal” and the person who is given power over the principal’s finances is the “agent”.

When Does a Financial Power of Attorney Become Effective?

• Option 1 – Springing Financial Power of Attorney

You can either have your FPOA become effective upon a future date or immediately. Financial powers of attorney that become effective upon a future date are often termed “springing powers of attorney” and can be triggered either upon:

• An uncertain date, such as incapacitation, or
• a specific date that you know you may be unavailable.

In Wisconsin, incapacitation is the legal term for when a health care power of attorney becomes effective and it means that an individual is “unable to receive and evaluate information effectively or to communicate decisions to such an extent that the individual lacks the capacity to manage his or her health care decisions.”[1] Therefore, a financial power of attorney that becomes effective upon incapacitation essentially allows someone to handle your finances while you are in the hospital or experiencing a medical event that rises to the level of incapacitation.

Creating a FPOA to be effective upon a specific date that you know you will be unavailable for is a tool often used for real estate closings, allowing someone to sign on your behalf. These types of Financial Powers of Attorney are often called “limited” as they are intended for one specific purpose and terminate after that purpose has been fulfilled.

• Option 2 – Financial Power of Attorney That Becomes Effective Immediately

Alternatively, you can make your FPOA effective immediately. This is a great option for spouses who name each other as the other’s FPOA agent. It allows your spouse to handle a host of issues for you that can unexpectedly or expectedly arise. For example, your FPOA can give your spouse power to handle the filing of your income taxes for you if you were unable, or to even handle any government benefits you may be eligible for, such as Social Security and Medicare.

What Are the Pros and Cons of a Financial Power of Attorney?

The largest benefit of a FPOA is that having one in place can avoid court intervention. For example, suppose you end up in the hospital after a car accident and need some expensive surgeries, but to pay for the surgeries, you would benefit from leasing your home while you stay with a family member to recover. Having a FPOA in place would allow your agent to handle the leasing of your home for you (as long as your FPOA gives your agent the power to manage your real estate) and use the lease proceeds to continue paying your mortgage and avoid foreclosure.

Some other benefits of a FPOA include avoidance of delays in handling your finances (and the costly mistakes or interest charges that can follow) and overall convenience.

However, a FPOA can have some disadvantages if not thought out or misused. The largest risk of a FPOA is naming an agent who either mishandles or abuses your finances. While there are legal remedies available for a principal in these situations, beginning a court proceeding to pursue these remedies can be quite the headache. Another risk of a FPOA is failing to keep it up to date, which can result in a financial institution refusing to accept it.

While these risks exist, perhaps the biggest risk is failing to have a FPOA in place until its too late, as you can only have one done while you are of sound mind. The risk associated with naming an agent who mishandles or abuses your finances can be mitigated by choosing someone you trust and if that trust is ever extinguished, by revoking the document entirely.

The best practice when creating a FPOA is to have an attorney draft and explain the document to you. An attorney can cater the document to your specific situation and advise you on the best way to use the document. It is common practice for attorneys to offer FPOAs in conjunction with a will or trust plan, as your will or trust allows for the disbursement of your assets when you pass, whereas a FPOA allows for the flexibility of handling your assets while living.

[1] Wis. Stat. §155.01(8)

Schedule a consultation with Wynn at Law, LLC today to discuss the estate planning process

Whether you already have an estate plan in place in need of review, or would like to start from scratch, our attorneys are here to assist. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

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1. Naming Minors as a Direct Beneficiary of a Financial Account

Naming a minor child as a direct Payable On Death (POD) beneficiary of a financial account or as an insurance beneficiary could result in the money either going directly to the child’s guardian, or to the child the minute , he or she turns 18. Many 18-year-olds who come into large sums of money spend it in ways that may not be in their best interest or a child’s guardian may not be the person you want controlling the money either (i.e. divorced spouses). Parents or grandparents of minors should consider other estate planning tools, such as a trust, to avoid this situation.

2. Adding a Child as a Joint User to a Bank Account

Aging parents often find it advantageous to add one of their grown children to their bank accounts as a co-owner/ joint user so that their child can handle their finances. When the aging parent passes, the child on the bank account now owns those funds 100%. Parents with multiple children may not have anticipated this or assumed that the child would voluntarily share the funds with their siblings. In most cases, the child on the bank account does not share the funds with their siblings, and legally, they have no obligation to do so. Even if that child were to share the funds, unintended gift tax consequences can arise. Aging parents in this situation should consider using a Financial Power of Attorney to allow a child to manage their finances during their lifetime.

3. Improper Spousal Ownership of Real Estate

What happens in Wisconsin to real estate when one spouse passes? Does the surviving spouse automatically own the real estate? The answer lies in the way the spouses took ownership on the deed and the type of real estate owned. Simply having both spouses listed on the deed as owners (such as “Jack Doe and Jane Doe”) is not enough to avoid probate in most cases. Special consideration must be taken when titling real estate to ensure that a probate is not required between the spouses when one spouse passes. Having an attorney review your deed and fix any unintended titling mistakes can help prevent costly mistakes that can arise with what is often our biggest asset – the home! An attorney can also advise on options for passing down real estate when both spouses pass and common mistakes that can arise with these transfers and how to avoid them.

Schedule a consultation with Wynn at Law, LLC today to discuss the estate planning process

Whether you already have an estate plan in place and need to review it, or you would like to start from scratch, our attorneys are here to assist you. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

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