A will controls what happens after you die. A power of attorney handles the harder in-between: what happens if you are alive but unable to manage your own affairs, whether from illness, an accident, or age. Naming someone you trust to step in, before a crisis, is one of the most important pieces of any Colorado estate plan, and it is often overlooked.
This guide explains the two main powers of attorney in Colorado, the durable financial power of attorney and the medical durable power of attorney, how to create each, and how to change or revoke them.
Two documents, two jobs
- Durable financial power of attorney: lets an agent manage money, property, and legal affairs. Governed by Colorado's Uniform Power of Attorney Act, C.R.S. Title 15, Article 14, Part 7.
- Medical durable power of attorney: lets an agent make health-care decisions if you cannot. Governed by C.R.S. 15-14-506.
- Key word: "durable" means the authority survives your incapacity, which is the whole point.
The durable financial power of attorney
A financial power of attorney authorizes a person you choose, your agent, to act on your behalf in money and property matters: paying bills, managing bank accounts, handling real estate, dealing with taxes, and more. Colorado adopted the Uniform Power of Attorney Act, found at C.R.S. 15-14-701 and following, which governs how these documents are created and what powers they can carry.1
The critical feature is durability. Under Colorado law a power of attorney is presumed durable, meaning it remains effective even after you become incapacitated, unless the document expressly says otherwise.2 That is exactly what you want. A non-durable power would evaporate at the very moment you need it most. You can make the authority effective immediately, or make it a springing power that takes effect only when a doctor certifies you can no longer manage your affairs.
A financial power of attorney is powerful and open to abuse if the wrong person holds it. Choose an agent you trust completely, consider naming a successor agent in case your first choice cannot serve, and know that your agent owes you fiduciary duties: to act in your interest, keep your property separate, and keep records.
The medical durable power of attorney
A medical durable power of attorney is a separate document that names an agent to make health-care decisions for you when you are unable to make or communicate them yourself. In Colorado this is authorized by C.R.S. 15-14-506, which lets any competent adult appoint an agent to make medical treatment decisions on their behalf.3 Your agent can consent to or refuse treatment, choose providers, and access your medical information, guided by your known wishes.
This medical agent works hand in hand with other advance-planning documents, such as a living will that states your wishes about life-sustaining treatment. We cover the full set in our guide on Colorado advance directives. Together, a medical power of attorney and a living will make sure both a decision-maker and your instructions are in place.
Creating a power of attorney in Colorado
To create a valid financial power of attorney in Colorado you must be an adult of sound mind, name your agent and their powers, and sign the document. Colorado law provides that a power of attorney must be signed by the principal, and a signature is presumed genuine if acknowledged before a notary public.2 Notarizing your financial power of attorney is strongly recommended, because banks and other institutions expect it and are more likely to honor a notarized document without hesitation.
A medical durable power of attorney has its own execution requirements under the medical-decisions statutes. Once signed, give copies to your agent, your doctors, and your family, and keep the originals somewhere accessible. These are documents your loved ones need to find quickly in an emergency, not lock away.
Changing or revoking a power of attorney
As long as you remain competent, you stay in charge. You can revoke a power of attorney at any time. The cleanest way is to sign a written revocation, deliver it to your agent, and notify any bank or institution that has a copy on file. Under the Uniform Power of Attorney Act, an agent's authority also terminates in certain events, including your death, your revocation, the agent's resignation, or, for a spouse-agent, a divorce or legal separation unless the document says otherwise.4
Review your powers of attorney every few years and after any major life change: a marriage, a divorce, a move, or the death of a named agent. An out-of-date agent designation can be as problematic as having none at all.
How this fits your Colorado estate plan
Powers of attorney protect you while you are alive; a will protects your wishes after you die. A complete Colorado plan includes both, plus health-care directives. If you have not yet made your will, that is the natural foundation to build on. You can create a clear, Colorado-specific will in plain language with our online will builder, and read our step-by-step guide on how to write a will in Colorado.
This article is general information about Colorado law, not legal advice. Consult a licensed Colorado attorney for guidance on your specific situation.
Frequently Asked Questions
What does "durable" mean in a power of attorney?
Durable means the agent's authority continues even after you become incapacitated. In Colorado a power of attorney is presumed durable unless it says otherwise.
Do I need a lawyer to make a power of attorney in Colorado?
Not necessarily, but the document should be signed and notarized so banks and institutions will honor it. Complex situations benefit from an attorney.
Is a financial power of attorney the same as a medical one?
No. A financial power of attorney covers money and property under the Uniform Power of Attorney Act. A medical durable power of attorney covers health-care decisions under C.R.S. 15-14-506.
Can I revoke a power of attorney in Colorado?
Yes, at any time while you are competent. Sign a written revocation and notify your agent and any institution holding a copy.
Sources
- 1C.R.S. 15-14-701 et seq.: Uniform Power of Attorney Act (colorado.public.law)
- 2C.R.S. 15-14-704 and 15-14-705: Durability and execution of a power of attorney (law.justia.com)
- 3C.R.S. 15-14-506: Medical durable power of attorney (colorado.public.law)
- 4C.R.S. 15-14-710: Termination of power of attorney or agent authority (law.justia.com)
About the author
Max Kuch
Max Kuch writes about estate planning, wills and inheritance for Online Will Colorado. He gathers the rules from the Colorado statutes and the leading public data, then explains them in plain, accessible language so anyone can put their wishes in writing.