The law permits residents of Colorado to give a trusted dependent, friend or employee the rights to act on their behalf in financial, legal and monetary matters before or after lifetime incapacity. This is done by filling a power of attorney.
This article reveals what a Colorado power of attorney is, how it works, its types and why it is important.
What is a Colorado Power of Attorney?
A power of attorney Colorado is the power conferred on an individual (principal) by the laws of the state to designate to an agent the responsibilities of making legal, monetary and health care decisions on the principal’s behalf. The agent is also known as an attorney-in-fact while the principal is also known as a donor or grantor.
This agent stands in for the principal should they fall ill or be absent for an extended period of time. If durable, the agent is authorized to act on behalf of the principal even if they become incapacitated.
How Does The Colorado Power of Attorney Work?
A power of attorney form Colorado becomes effective immediately upon the principal’s " class="text-blue" target="_blank">signature except otherwise stated. The principal is allowed to dictate – under the Special Instructions section - what date the powers granted to the agent will become effective.
Should the principal not include an expiration date, a Colorado power of attorney remains valid till the revocation of the document or till his/her death. For a non-durable power of attorney form Colorado, it becomes invalid as soon as the principal becomes incapacitated and cannot make decisions on his/her own.
In general, an agent’s powers become terminated if;
- the principal revokes the powers
- agent resigns, dies or becomes incapacitated
- the agent is a spouse of the principal and agrees to a marriage dissolution.
Although a principal is allowed to revoke the agent’s powers anytime deemed fit, this termination is not effective unless the agent has knowledge of this termination. To revoke the powers of an agent, both principal and agent must sign a revocation form in the presence of some witnesses or a notary public.
A principal resident in Colorado can obtain a power of attorney form from an office supply store or download from a platform like CocoSign. This platform has several Colorado Fillable power of attorney forms one can fill and execute under the provisions of the law.
Types of Colorado Power of Attorney?
General power of attorney:
This authorizes an individual the legal rights to act on behalf of another in virtually all legal and financial matters. The powers here are not usually limited to specific areas. Also, the power of attorney becomes void once the principal dies or becomes incapacitated in any way.
Limited power of attorney:
A limited power of attorney grants the agents the powers to act on behalf of the grantor only on certain affairs. The limitations of the powers of the attorney-in-fact are clearly written out in the power of attorney document.
Durable power of attorney:
This power of attorney is designed to allow for continuous representation of a principal till his/her death. In other words, the agent represents the principal as specified by the content of the power of attorney form even beyond the point the principal becomes incapacitated and can no longer make decisions by him/herself.
Medical power of attorney:
This medical poa form grants powers to the attorney-in-fact to make medical decisions on behalf of the principal. Most often than not, it is used by seniors, individuals who are terminally ill or those who work at high-risk environments.
Financial power of attorney:
A financial power of attorney authorizes an attorney-in-fact to act in the name of a principal on all financial transactions. The agent may be given broad powers or limited to making decisions only on particular financial matters.
Real estate power of attorney:
This permits the principal to appoint an agent to manage properties in his/her name
Parental power of attorney:
This power of attorney type allows the parent(s) to hand over their decision-making rights over a minor to another who is supposed to act as a temporary guardian. This guardian makes medical decisions in the event there is a medical emergency to the minor, in the name of the principal. It is usually used by a principal if he/she is going to be out of town or the country for an extended period of time.
Revocation of power of attorney:
A revocation power of attorney form is used to effectively put an end to the legally binding agreement between a principal and their agent.
Vehicle power of attorney:
Here, the agent is granted the power to handle all matters related to the principal’s vehicle including the official registration of the vehicle with the Colorado Department of Motor Vehicles.
Why Is the Colorado Power of Attorney Important?
Whether young or old, Colorado residents should give drafting a Colorado power of attorney a thought. This is because it is a grand chance to appoint someone who can stand-in for you in your absence or in the event that you become incapacitated physically or mentally.
Such a document is important for individuals who will be away for a long period and might need someone to take charge of their financial, business, real estate and legal transactions. It is also recommended for seniors at the risk of suffering from dementia, Alzheimer’s or any terminal illness that might affect their sense of judgement.
Colorado Power of Attorney Requirements
For the content of a power of attorney form Colorado to be valid, it must be executed according to the dictates of the Colorado Power of Attorney Act.
To begin with, the principal and agent must be at least 18 years of age. The principals must also be able to name their agent(s) and clearly state what their authority is and what responsibilities the agents can take on their behalf.
Finally, the documents must be signed in the presence of a notary public or witnesses who can ascertain that the principal wasn’t intoxicated while drafting the document, nor did they appoint an agent under duress.
Filling a power of attorney form and executing it under the provisions of the law should be a breeze-through with the tips highlighted above. To get started, download one of the tens of power of attorney templates available on the platform.
CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.