A power of attorney lets someone you trust manage your financial or healthcare decisions if you cannot. Drafted correctly, it functions exactly as intended when it is needed most. Drafted poorly, it gets rejected by banks, disputed by family members, or fails to cover the situation you were trying to address.
Schedule a ConsultationMost people need two power of attorney documents as part of a complete estate plan. A durable financial power of attorney authorizes your agent to manage financial matters. A healthcare power of attorney authorizes your agent to make medical decisions. They can name the same person or different people.
Authorizes your agent to manage bank accounts, pay bills, handle investments, manage real estate, and file tax returns on your behalf. "Durable" means it stays effective if you become incapacitated.
Authorizes your agent to make medical decisions when you cannot. Works alongside a healthcare directive, which states your wishes; the POA designates the person who carries them out.
A standard power of attorney terminates automatically if the principal becomes incapacitated. That is the opposite of what most people intend. A durable power of attorney keeps the authority in effect during incapacity, which is the entire point of having one. Colorado revised its POA statute in 2010. Documents predating that revision may not function as their owners expect.
Some financial institutions resist honoring outside POA documents. A well-drafted, attorney-prepared document that complies with Colorado's current statutory requirements is the most reliable way to avoid rejection at the bank or title company.
Legally, your agent can be almost any competent adult. Practically, you are choosing someone who may need to manage your entire financial life under difficult circumstances. The list of people you would genuinely trust with that is usually shorter than it first appears.
You can name a primary agent and one or more successors. Naming successors takes little additional effort at the drafting stage and avoids a gap in authority if your first choice is unavailable.
A power of attorney only works while you are alive. It does not control what happens to your assets after death. For that you need a will, a trust, or both. A power of attorney works best as part of a complete estate plan that addresses the full situation.
Hoog Law drafts durable financial and healthcare powers of attorney for individuals and families throughout Longmont and Boulder County, as part of a complete estate plan or as standalone documents.
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