POA & POD - What you should know!

Before I started working at Horizon Community Credit Union, I was employed as a caregiver for seniors. I assisted with daily living needs, but over time I became aware of the type of financial responsibilities seniors have. One of the things that seniors must establish later in life is a financial power of attorney, often called POA’s.

A Power of Attorney for Finances is a person to whom you have granted the right to handle your finances and property. There are a few important things to know about a POA for Finances. First, establishing a financial POA does not mean you relinquish control of your finances and property. You still have the power over your finances and property, but in the case that you cannot act, your financial POA can act for you. Even if you are able to act, your POA can conduct that action for you.  Second, financial POA is durable. This means that, unless you specify otherwise, the POA is still active even if you become incapacitated. Third, you can change your POA at any time. You simply need to revoke the current POA form and complete another one. Lastly, and most importantly, the financial POA has no power over your finances and property after your passing.

There is a form made available by the state of Wisconsin that establishes POA for Finances, and the link for that will be available at the bottom of this post. You need to meet with your lawyer to complete this form. Horizon Community Credit Union requires legal documentation such as the form available thorough the link. I encourage you to look through the form, as there is so much information regarding POA of Finances that I would have to write a short book instead of a blog post.  It is also important to note that this particular POA is for Finances only. If you wish to establish a POA for your healthcare decisions, that is a separate process.

Another term you may hear is POD, which means Payable on Death. In laymen’s terms, anyone you establish as a POD becomes a beneficiary of your account upon your passing. A POD does not have any powers over finances or property.

What I’ve explained only just touches on the subject of POA/POD. If you have legal questions, certainly consult your lawyer. If you have the paperwork required to establish a POA or you have questions about what paperwork the credit union requires to establish a POA, you can stop by the paperwork or call with questions any Horizon Community Credit Union branch during normal business hours. If you would like to set up a beneficiary POD, stop by either of the Horizon Community Credit Union branch during normal business hours. You need to know your POD beneficiary’s information (SSN and the like) or you can bring the person you wish to assign as a POD beneficiary with you.

POA and POD can seem complicated, and sometimes they are. At Horizon Community Credit Union we’re here to help you understand. Though your legal questions should be directed to an attorney, the Member Service Representatives at either Horizon Community Credit Union branch can help clarify any remaining questions.

State of Wisconsin Department of Health Services: Power of Attorney for Finances Form

Post by: Breanna B.