How to Utilize a Free Power of Attorney Form in Colorado

Power of Attorney in Colorado

Power of Attorney is an integral part of estate planning for anyone living in Colorado. It can seem like a complicated legal term, but it involves a straightforward idea: Power of Attorney is essentially a way for you to appoint someone else to conduct business on your behalf, so long as you’re not incapacitated and you give that person permission to act for you (i.e. to do what an owner would do for something they are preparing to transfer).
A Power of Attorney, or PoA, can be used for lots of things. Sometimes it can be useful when you’re out of town on a long trip or when you’re too busy to commit time to certain things. And then there are times when it’s also used to prepare a transaction with someone who’s ill but can still understand enough so that it’s possible to transfer things without disrupting other aspects of your estate plan .
People often ask whether it’s necessary to earn a lawyer’s help to write a PoA. The short answer is that it’s not necessary. While it may be helpful in some cases, which will depend on the complexity of what you’re trying to do, it’s also reasonable that many people can understand most of the keys elements in a PoA and how it works.
A Colorado PoA allows you to put forth a specific person to act together "with" you as an owner. When you sign a PoA agreement in Colorado, what you’re doing is essentially stating that the person you choose to act together with you can exercise a variety of ownership rights including the powers to exercise a power property, debt, and business rights. The only exception to this is a medical power of attorney, which can only be executed by someone who is of sound mind and competent (and who does not immediately need medical care).

Different Types of Power of Attorney in Colorado

In Colorado, all of the "power" given to your agent is granted from the general Power of Attorney Statute unless additional language is added by a specific Power of Attorney. This means that all of the powers given to your agent are automatically "general" which is the most broad type of Power of Attorney (PA). Therefore, it is up to you to specifically refuse powers from the general PA. From my experience, additional power cannot be refused from a PA for incapacity. The general PA can be suspended if you have a Durable PA that contains an Incapacity clause. This brings us to the other types of Powers of Attorney: Durable and Limited.
A Limited PA gives your agent power to handle a specific transaction. Because it is limited, there is no power to use the PA on anything other than what is specifically granted. For example, if you wanted your agent to be able to sell your vehicle but not your home, you would only give them a Limited PA that used specific language authorizing them to sell your vehicle.
A Durable PA lasts for as long as you remain competent. It gives your agent broad powers until you become incapacitated. At that point, the Durable PA allows the agent to enter medical records, receive financial information or make health care decisions on your behalf. To avoid issues with evidence and to simplify the process for hospitals, some physicians will require a durable PA which includes the medical canaries and/or financial canaries. This form of Durable PA should contain specific authority allowing the agent to use that portion of the PA to deal with issues when you are incapacitated.

Advantages of Using a Free Power of Attorney Form

There are multiple benefits to using a free power of attorney form for your estate plan. First and foremost, it doesn’t cost you anything. If you are a Colorado resident, you can go to the Colorado Bar Association website and download a free form that you can fill out at home and have witnessed and notarized. You can also download a healthcare power of attorney. The paid alternatives often cost hundreds of dollars. In addition, you don’t always need a lawyer to prepare a power of attorney. Colorado law is very simple, and the forms are quite easy to fill out – as long as you don’t mind working with a government-approved form that has limited flexibility.
A free power of attorney form is also useful for getting a head start on your estate planning. In Colorado, a power of attorney will terminate when you become incapacitated. A lawyer who uses a power of attorney will also need to hire a judge to approve the power of attorney when you are incapacitated. When you and an agent are involved in the process, you can complete the process on your own by going to the local county clerk and recorder’s office, filling out the forms, having it witnessed and notarized, and then filing it with the court. Of course, you need to be competent to do this, so if that is not possible, your only option might be to hire a lawyer.

Where to Find a Free Power of Attorney Form in Colorado

In terms of locating a free power of attorney form in Colorado, there are several potential resources one should confirm. First and foremost, potential resources are accessible through the State of Colorado – whether on the Secretary of State’s website (for the financial power of attorney form) or the Office of Recorders where one can access a free Medical Durable Power of Attorney as well as the Living Will Declaration. Both of these online forms are initially written as simple 1-page documents (in Spanish and English), however, they note that they are not all inclusive and outlines that one should address whether or not the powers being given to an agent should be further described. Additionally both forms advise that you speak to an attorney for further guidance. Other possible resources include various non-profit organizations throughout Colorado that provide these forms at no cost and would also be able to assist you with other related questions or concerns you may have, including but not limited to Elder Law attorneys, Estate Planning and/or Real Estate attorneys as well as Estate Planning Non-profit Organizations, and local County Recorders.

How to Complete a Power of Attorney Form

When you are ready to tackle the estate-planning process, you will have to fill out many different forms and documents. The most important steps to creating a power of attorney are as follows: Choose a reliable person whom you know personally to act as your agent. Be specific about what powers you want to grant your agent. Review the power of attorney carefully to ensure that it meets your needs. Make copies of the completed power of attorney form for your records, and give one to your agent. Have the power of attorney notarized. You will need one notary public to witness your signature and another one to witness your agent’s acceptance. Delegate certain powers to your agent. Colorado recognizes the following categories of power: To delegate these powers, you will have to specifically list them and the people to whom they will be given . You can also write in and delegate general powers to your agent in the declaration section of the form. You must sign and date the document and include whether you intend it to be used in the event of your disability or incapacity. Signing Requirements. Notaries are commonplace and can be found at banks and on college campuses. The only requirement is that you should present a valid driver’s license or identification card when completing the form. To activate the power of attorney, the signer must sign in front of the notary. Timing. To ensure the validity of the form, power of attorney forms must be signed in front of a notary public and become valid on the date of signing. Amendments. Powers of attorney come with the option to attach amendments to the form that expands or reduces the principal’s specified powers.

Requirements for Legitimacy

For your power of attorney form to have legal standing in Colorado, it must meet certain standards outlined in the Colorado Probate Code. For starters, your powers of attorney must be signed by the principal and either notarized or signed by two witnesses. No other forms of authentication are necessary or permitted under the law. If the decision is made to create a durable power of attorney, the document should contain specific language stating that it is durable. The language must read as follows, "This Power of Attorney shall not be affected by subsequent disability or incapacity of the Principal or by the lapse of time." Close attention should be paid when executing a durable power of attorney because, once it has been initiated, the principal is no longer capable of changing or revoking it in most circumstances. In addition to the legal requirements for validity of the document itself, the powers granted to the agent within the Colorado power of attorney must conform to the enumerated powers listed in the Colorado Revised Statutes. The powers of attorney law contains specific limitations on the authority of the agent to act on behalf of the principal and on the authority required for certain major transactions. With regard to the powers the principal provides to the agent, the principal cannot give the agent authority to do any of the following: In addition, the principal may not give the agent the exclusive authority to do any of the following: In light of these restrictions, it is advisable to consult with an estate planning attorney when creating a power of attorney to ensure that the document meets the statutory requirements and accomplishes the principal’s intended objectives.

Common Pitfalls to Avoid

Common Mistakes to Avoid are key to the effectiveness of your Free Power of Attorney in Colorado, especially if you are addressing a financial or medical issue. You do not want to end up like the people in these examples.
The free power of attorney form is certainly not perfect. One time, after I had delivered a presentation to some of Colorado’s Elder Law attorneys, one of the younger attorneys who had been writing wills and trusts for years, thanked me for outlining how to execute a free power of attorney. She said that she had been preparing a free power of attorney for her grandfather, but messed it up somehow. By the time she got to my talk, her grandfather was in a nursing home and she could not get a new one signed without a court hearing for a guardianship. Had she heard me earlier, she could have had a winning case.
Therefore, let’s look at some of the "do not do" mistakes.
Signing too early. Even though the law says that the wages or benefits of an agent under a financial power of attorney are not subject to garnishment, it has been my experience that many financial institutions seem to ignore that law. Therefore, wait. I enable many clients to prevent early signing by having them sign the forms and then giving them to an agent to keep in a lock box. That way, when the time comes that you need an agent to act for you, it is in a lock box for your agent to use immediately, without having to go to court for a guardianship.
Erase out all the initial requests to erase that are not appropriate to you. When you go to a bank to try to use a power of attorney, it helps you to use the Denver County option and write in black ink all the boxes that you need – this tool usually works. I have also supplied a stamped form for use in a binder that allows the insertion of the date. The issue is discussed in greater detail in my article on What If My Power of Attorney Is Refused by a Financial Institution.
Do have ancillary affidavits available for you agent to use. Be aware however that some financial institutions still have their own specific form. You may want to have a money stamp for your home or your business to help endure that the power of attorney is your power.
Some powers of attorney must be notarized, if they are notarized but not titled, then as the attorney in fact, have a statement made at the end of the signing to address the issue that the powers of attorney are not titled. Consult with your attorney for additional help.
Do not have your friend who is taking care of you write a post-it note that he or she does not want a lawyer involved. These kinds of precautions make it impossible for that agent to take you to a lawyer on the day of signing should you encounter any problems. Then do not first and run out the door with the document. Do not make that mistake of over-confidence and over-rush of execution.

How to Revoke a Power of Attorney in Colorado

Whether from simple regret or changes in circumstances, a principal may revoke a power of attorney at any time. However, like the durable power of attorney, revocation must be in writing, signed and dated by the principal. C.R.S. §15-14-506(1)(b). The revocation should contain the same degree of formality as the original power of attorney and may be incorporated into a new power of attorney document. C.R.S. §15-14-506(1)(c).
Notifying agents and third parties of the revocation is essential to stop future transactions by the agent. This can be challenging, especially when the principal and agent have an ongoing, active relationship and the agent refuses to acknowledge the revocation.
Tools available to combat a recalcitrant agent identified in Colorado’s’s Uniform Power of Attorney Act (the "Act") include a copy of the revocation provided to the agent and an agent acceptance health care instruction letter terminating the agent’s authority under the medical durable power of attorney. C.R.S . §15-14-506(3) and §15-14-507(2). Colorado’s Act also provides an option for judicial relief. Under the Act, advancing a civil proceeding to stop an agent from abusing or misusing authority is expressly permitted. This relief includes an evidentary hearing, an injunction or temporary restraining order. C.R.S. §15-14-530.
In addition, the financial institution (as defined in the Act) may be served with a copy of the revocation if the power of attorney is in effect in a financial context. "Financial institutions" are defined broadly as "an organization doing business in this state that is regulated or subject to examination by a governmental or quasi-governmental agency and all other persons authorized to make loans or issue letters of credit or to receive deposits of money or other personal property in the usual course of business." This includes credit unions, banks, savings and loan associations, building and loan associations, title companies, loan brokers and savings clubs. C.R.S. §15-14-501(8)(b).