Colorado Power Of Attorney Form Template – Forbes Advisor

A power of attorney is a legal document granting one person the right to act on behalf of another person. The person granting this authority is the principal, and the person given this power is the agent or “attorney-in-fact.”

The POA can be limited to a specific area of the principal’s life, for example, a medical power of attorney or a financial power of attorney. It can also be limited in duration or limited based on the state of the principal. If the principal becomes incapacitated, only a “durable” power of attorney will allow the agent to continue to act on the principal’s behalf.

Anyone who wants to ensure that a specific person has the power to act on their behalf should consider a power of attorney. A POA is a powerful, viable tool in any situation where you need someone to act for you. You don’t have to be old or sick.

That said, if someone does become incapacitated, they’re covered. Indeed, if you consult with an estate planning attorney, odds are they will discuss using a power of attorney.

In order for a power of attorney to be valid in Colorado, it must be in writing and contain all of the following:

• The name of the agent or attorney-in-fact
• The scope of the POA, meaning the rights and responsibilities the principal is assigning to the agent or attorney-in-fact
• The principal’s signature, often notarized or witnessed by two people
• The date of execution

In addition, the principal must be competent to grant the power of attorney. Being competent—sometimes called being “of sound mind”—means having sufficient mental capacity to understand what they’re doing and being able to make their own decisions.

Principals can choose from several types of powers of attorney. But, generally speaking, there are two different categories of powers of attorney:

• those based on mental soundness and
• those based on what they do and don’t cover.

Capacity-Based Powers of Attorney

Protecting assets if someone becomes incapacitated is one of the main reasons for creating powers of attorney. That’s why many POAs are designed based on the capacity of the principal.

• Durable Power of Attorney. Here, the principal intends for the authority granted to the agent to continue even after they become incapacitated. Durability is presumed in Colorado, which means a POA will automatically remain effective if the principal becomes incapacitated or disabled.
• General Power of Attorney. A general (or “non-durable”) power of attorney can only be created when the principal is competent. If the principal becomes incapacitated, the POA is no longer effective.
• Springing Power of Attorney. Here, the POA only becomes effective if the principal becomes disabled or incapacitated. It’s also sometimes called a “standby” power of attorney.

Scope-Based Powers of Attorney

These powers of attorney are confined to a specific task or situation. They can be as narrow as a POA to sell a specific piece of property or asset. Or, they can be as broad as granting the agent the power to act in all financial matters for the principal.

The medical power of attorney is perhaps the best-known scope-based power of attorney. This document grants the agent the power to make medical decisions on behalf of the principal. Typically, this is when principals cannot make those decisions themselves.

Nearly anyone can serve as an attorney-in-fact. They do not need to be an actual attorney. They do, however, need to be a legal adult and not otherwise incapacitated.

Ensure that the attorney-in-fact is someone you trust. Note that principals may also select backup attorneys-in-fact, in case the primary is unreachable.

Who must sign a power of attorney and other requirements vary by state. In Colorado, a power of attorney form doesn’t require a witness or notary, but a notary is encouraged. Be sure to confirm current laws in your jurisdiction.

Consider getting the POA notarized, even if it’s not a requirement. This will give it an extra layer of protection in case someone challenges it.

You don’t need a lawyer to create a power of attorney in Colorado. However, you should seek the help of a trusted attorney to finalize your document to ensure it’s legally sound.