A power of attorney is a document that grants one party the authority to act on another party’s behalf in legal or business matters. In some cases, a power of attorney becomes effective immediately, while in others it becomes effective after a certain condition is met. Unless certain conditions are specified, a Colorado power of attorney becomes void upon the principal’s death.
In estate planning, obtaining power of attorney is a common measure for handling medical and financial issues in the event of the principal’s incapacitation, which means that he or she is unable to give informed consent.
1. Medical Power of Attorney
Obtaining medical power of attorney lets you appoint people to make decisions on your behalf in the event you cannot give informed consent.
2. Financial Power of Attorney
Obtaining financial power of attorney lets you appoint people to make financial property decisions on your behalf in the event you cannot give informed consent.
To prepare for the unexpected, having a power of attorney for both medical and financial issues is the best option.
General Versus Limited Power of Attorney
In some cases, a power of attorney agent presides over a principal’s general affairs, while in others the agent is limited to a specific capacity. A common example of a limited power of attorney agent is an agent who has estate expertise and makes certain property decisions on the principal’s behalf.
Durable Versus Non-durable Power of Attorney
For a power of attorney to remain in tact if you become incapacitated, it must be made “durable” by completing a document that establishes its durability. Having a durable medical and financial power of attorney could protect your dignity and your family’s financial interest if you become incapacitated.
Obtaining Power of Attorney in Colorado: FAQ
Who can Establish Power of Attorney?
Under Colorado law, any competent adult age 18 or older can establish power of attorney.
Who can serve as a General Power of Attorney Agent?
Under Colorado law, any competent adult age 21 or older can serve as a general power of attorney agent.
Can a Principal Terminate Power of Attorney?
As long as a principal is able to give informed consent, he or she can terminate a power of attorney at any time.
What if my Spouse is my Agent and we Divorce?
Under Colorado law, a spouse’s appointment as agent for his or her spouse is immediately terminated upon divorce.
Is it Legal to have More than One Power of Attorney Agent?
You can have more than one agent, although having a single agent could make matters less complicated if you become incapacitated. To preserve a power of attorney in the event of an agent’s resignation, termination or death, a better strategy is to establish a line of successor agents.
Does a Colorado Power of Attorney Hold Power in Other States?
If a Colorado Power of Attorney is legally executed in Colorado, it holds power in other states.
Obtaining a power of attorney is a serious decision whose arrangements require the aid of an experienced estate attorney. To learn more about obtaining power of attorney in Colorado, contact Ellmann PC today.