Powers of Attorney Information
Colorado Attorney R. Brian Daniel
Many people don’t think about who would manage their affairs or make decisions for them if they become unable or unavailable to do so for themselves. A Power of Attorney is a legal document that gives another individual the legal right to act or to make certain decisions on your behalf. It is a document that may be used in situations where you become incapacitated or otherwise unavailable (if you become unconscious or are seriously injured or are unable to communicate). A Power of Attorney can have varying degrees of duration and authority. If you think you need a Power of Attorney, you should consult a Parker, Colorado Power of Attorney lawyer who can evaluate your situation and prepare a document that will meet your specific needs.
The Structure of a Power of Attorney
An individual giving legal authority to someone else is referred to in a Power of Attorney as the “Principal” and the person acting on the Principal’s behalf is typically referred to as the Principal’s “Agent” or “Attorney-in-Fact”. The Principal designates the person to be named as Agent or Attorney-in-Fact (the person who is to be given the fiduciary responsibility to act in the Principal’s best interest). To be valid, a Power of Attorney must be signed by the Principal and his or her signature must be notarized. In addition, the Principal must be mentally competent when he or she signs the Power of Attorney. Notwithstanding the existence of a fully executed Power of Attorney, a Principal will maintain the right to make his or her own decisions and to revoke any Power of Attorney at any time, providing he or she is still mentally competent.
Types of powers of attorney
There are two basic Power of Attorney types. The first is a “Medical Power of Attorney”. This is a document that gives an Agent the authority to make healthcare decisions for the Principal if the Principal becomes incapacitated or otherwise unable to make such decisions. The second is a “Financial Power of Attorney” – also called a “General Power of Attorney”. This is a document that gives an Agent the authority to transact business on behalf of the Principal and make decisions regarding the Principal’s finances and assets if the Principal becomes incapacitated or otherwise unable to make such decisions.
Duration of powers of attorney
Powers of Attorney may have different durations. A “Durable” Power of Attorney is one that remains in effect while the Principal is incapacitated due to disability or illness, but is terminated upon the death of the Principal. In contrast, a non-durable power of attorney becomes void in the event the Principal is incapacitated; therefore, most Powers of Attorney are Durable in nature.
Degree of authority given to the agent
Varying degrees of financial authority can be given to an Agent through a Power of Attorney. With a General Power of Attorney, an Agent may be given authority to act for the Principal in a variety of different situations. A Limited Power of Attorney, also called a Special Power of Attorney, only gives an Agent the authorization to perform certain actions on the Principal’s behalf and only in specified situations.
When you sign a Power of Attorney, you are giving someone else the legal authority to perform financial transactions and/or make important, possibly even life and death, decisions on your behalf. Due to the degree of power given to an Agent, a Power of Attorney should be drafted carefully and good judgment should be used when selecting the individual to be named as your Agent.
If you are facing a complicated legal issue, reach out to The Daniel Law Firm. We take great pride in serving clients all over Colorado. Let us discuss with you the best strategy for moving your case forward in both a positive direction and timely manner. Call us today at (303) 951-0233.
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