All You Need to Know About Power of Attorney Colorado
All You Need to Know About Power of Attorney Colorado
Life is unpredictable, and you may not be able to control everything all the time. If you face a legal obstacle or get incapacitated, you will need someone to handle your affairs. This is where a power of attorney (POA) comes into play.
Without a power of attorney, your most important life decisions, including medical and financial ones, would be made by strangers or court judges. It is a powerful tool that allows you to delegate authority to a trusted person without compromising your wishes or desires.
Keep reading to learn everything you need on power of attorney in Colorado, how you can create it, and how it can affect your estate planning.
What Is a Power of Attorney?
According to the Colorado Uniform Power of Attorney Act (UPOA), a power of attorney is a legal document that allows another person to act on your behalf in specified events. You can assign your rights and duties to someone you trust with a power of attorney.
The person who creates a power of attorney is referred to as the principal, and whoever receives it is the agent, also known as attorney-in-fact.
People use POAs to avoid court intervention, ensure their wishes get fulfilled, and protect their assets and interests.
How Does a Power of Attorney Work?
Establishing a POA in Colorado is not as complex as you might think. Here are some steps an attorney can take to help you make the process safer, quicker, and more convenient:
1. Choose an agent
The agent is the person who will act on your behalf. Choose someone trustworthy, reliable, and capable of handling the assigned duties, such as a close family member, friend, or attorney.
2. Select the powers to grant
Your POA should state clearly what your agent can and can’t do for you. Depending on your needs and the POA’s purpose, you can grant your agent the right to manage your finances, make medical decisions for you, or run your entire estate.
3. Sign the document
Signing the document makes the power of attorney official. You need to sign the document before a notary public or a person authorized by the state to take acknowledgments. You can also sign the document in the presence of two witnesses unrelated to you or your agent.
4. Provide copies of the document
Make sure to give copies of the POA to your agents and other relevant parties, such as your family or lawyers.
Types of Power of Attorney in Colorado
There are different Colorado power of attorney types, each with its benefits, limitations, specific requirements, and procedures.
Some of the common ones include:
1. Financial power of attorney
This type of POA lets you choose someone to handle your money and real property if you can’t.
Depending on when and how you want your agent attorney to act for you, you can choose different types of financial power of attorney.
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Limited POA gives your agent specific authority to do only certain things, such as access your bank account
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Durable POA stays in effect even if you become incapacitated, meaning you can’t make decisions for yourself
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Springing POA takes effect if you become incapacitated, as determined by a doctor or a court
As of 2010, all power of attorney forms are durable by default.
2. Real estate power of attorney
This POA type grants real estate planning power to your agent. It allows them to buy, sell, manage, or transfer property on your behalf. Your agent can handle all aspects of your real estate transactions and dealings, such as negotiating contracts, signing documents, paying taxes, or transferring titles.
3. Medical power of attorney
A medical power of attorney grants healthcare powers to your agent. It allows them to make medical decisions for you when you are unable to do so. It means that your agent can consent to or refuse treatments on your behalf.
4. Tax power of attorney
This type grants tax powers to your agent that allow them to file and handle tax matters on your behalf. Your agent can prepare and submit your tax returns or represent you before the IRS.
Is It Possible to Modify a Power of Attorney in Colorado?
If you change your mind regarding your POA’s content or agent, you have the right to modify it using any of these methods:
1. Generating a new one
Creating a new POA is a simple and effective way to revoke the older one. Ensure that your new POA states the revocation of the previous document.
2. Cancel or repeal
You can execute a revocation form or destroy the POA in Colorado law. Notify your successor agent, financial institutions, and other relevant parties about the revocation.
Benefits of a Creating a Power of Attorney
A power of attorney is a valuable estate planning tool. Along with other instruments, a POA will ensure your wishes are fulfilled and assets protected in your absence or incapacity. A power of attorney can help you and your loved ones:
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Avoid probate and conservatorship proceedings: If you become incapacitated and unable to manage your estate, the probate court may put it under a conservatorship, which can be expensive and time-consuming. You can avoid this by creating a durable POA.
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Ensuring that your assets and affairs get managed per your wishes. You can specify your agent’s authority and how they should handle your assets after death. For example, you can choose to give your agent designated authority to make financial decisions.
Do I Need an Attorney to Create a Power of Attorney Document?
Consulting an attorney in some cases may be advisable. That’s because you may not be aware of the legal implications of your decisions.
An attorney can help you create a power of attorney document that suits your needs and goals. In addition, they can make sure your POA is valid and enforceable under Colorado state law.
Some situations where you may want to consult an attorney are:
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Large or complicated estates, financial accounts, or beneficiaries that require legal advice
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You anticipate that someone such as family or other third parties may question your mental capacity.
Contact Duncan Legal LLC
When you need to make a big decision for your family, you want someone who understands your situation. Someone with the experience and the compassion to guide you through the legal process.
That’s why you need Duncan Legal, LLC, an estate planning attorney in Centennial.
For over 25 years, we have helped families like yours with their most important and personal issues. Whether choosing a power of attorney, planning your estate, or dealing with any legal challenge, we are here to help.
FAQ
What Is a General Power of Attorney in Colorado?
A general POA is a legal document allowing you to appoint an agent to manage your finances and make financial decisions. An available POA expires if the principal becomes incapacitated.