Life is unpredictable. If you become seriously ill or injured and can’t make decisions for yourself, someone else must step in. A power of attorney is a legal document that lets you choose that someone in advance. It names a trusted person to handle your affairs on your behalf. For example, you might give your agent authority to deposit your checks, manage your bank accounts, or even sell your home if you’re incapacitated. In Colorado, a POA simply grants specific powers to someone you trust.
Types of POAs
In Colorado, there are two main kinds of POA for most people’s needs. A financial POA allows your agent to handle money and business matters. This includes paying bills, managing investments or retirement accounts, dealing with real estate, filing taxes, and other financial tasks. A health care POA lets your agent make medical or personal care decisions for you. For instance, your agent could agree to or refuse medical treatments on your behalf if you cannot.
Who you choose is up to you. Colorado law lets you appoint any competent adult as your agent, but pick someone trustworthy and preferably local. You can also name backup agents to act if your first choice can’t. Remember, your agent must act in your best interest, following your instructions or making decisions that align with what you would want.
Why Plan Ahead with a POA?
Without a POA, Colorado has a default law, which will dictate what happens, but why give up control? These default provisions can be slow, costly, and involve the court system. The whole purpose of estate planning is to create a seamless transition of control between you and the people you choose. The principles remain the same for instances of incapacity. Don’t leave your future in the hands of a judge!
A POA lets you pick who’ll make decisions, and how. With a POA in place, there’s no guesswork or delay: your chosen agent can immediately step in to manage your affairs, using the authority you granted. This avoids the hassle and uncertainty of guardianship proceedings. It also helps prevent fights among family members about your care or money. By discussing your wishes and choosing an agent now, you give your family clear guidance and avoid leaving them in the lurch. No estate plan is complete without one. To learn more, check out our article on Advance Directives.
