What is a Power of Attorney?
Powers of Attorney are legal documents that allow someone else (an agent) to act on your (the principal’s) behalf. The agent designated in the document should put your needs ahead of theirs, which is why it is important to choose someone you trust to have your best interests at heart.
Does a Power of Attorney survive after death?
A Power of Attorney does not survive after death. That said, it is critically important to have both a financial Power of Attorney and a medical Power of Attorney while you are alive. Your agent under your Power of Attorney ensures that your wishes are followed, therefore, choosing your agent is vitally important.
What are the different kinds of Powers of Attorney?
There are various different kinds of Power of Attorney:
- General Power of Attorney (also known as a financial Power of Attorney): Here, the agent can undertake almost any legal act as if they were you. For example, they can open financial accounts, manage legal matters, or even business interests. A general Power of Attorney ends if you become incapacitated, revoke the Power of Attorney or pass away.
- Medical or health care Power of Attorney: These give the agent the power to make medical decisions on your behalf.
- Durable Power of Attorney: This type gives the agent all of the powers of a general Power of Attorney, but also contains a durable clause that maintains the Power of Attorney after you become incapacitated. In Colorado, the Uniform Durable Power of Attorney Act (UPOA), presumes that unless stated, a power of attorney is durable in nature and will continue if the principal becomes incapacitated.
- Springing Durable Power of Attorney: As with a Durable Power of Attorney, this form is still in force after you become incapacitated, but in this instance, it only becomes effective when a specific event occurs – such as the principal becoming incapacitated.
- Special or Limited Power of Attorney: Here, the agent only has specific powers, limited to a certain area or action. This could be the power to sell a home or other real estate.
How do I choose an Agent for a Power of Attorney?
The most important characteristic is that your agent should be trustworthy, fair-minded, know you well, and have your best interests at heart. They should also understand their duties and take those duties seriously. Depending on the kind of Power of Attorney, they may need to handle your legal, financial, or medical affairs. If you have someone you trust who works in those areas, this is an additional benefit. When appointing an agent, make sure you and they understand the scope of what they will need to do.
Does a Power of Attorney need to be notarized?
In Colorado, the law does require that a Financial Power of Attorney be notarized, but no witnesses are necessary. A medical Power of Attorney need not have witnesses or be notarized. The medical Power of Attorney that I do is notarized as this may make the document more acceptable in other states. If you move to another state, check that state’s requirements.
The importance of Powers of Attorney
Everyone over eighteen should have Powers of Attorney in place, both medical and financial. This is because anything might happen to an adult of any age that will require someone else to make decisions for them. It allows the people who love you to have the assurance that you have planned ahead.
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