A Power of Attorney (also known as a Colorado Power of Attorney) is a legal document that enables an individual (referred to as the “Principal”) to appoint another person or an organization to act on one’s behalf to manage his or her financial and/or medical affairs if the Principal is unable to do so. The person or organization appointed is referred to as an “Attorney-in-Fact” or “Agent.”

Power of Attorney - Inexpensive and Flexible

A Colorado Power of Attorney is an inexpensive yet very flexible document used to grant another the power to handle one’s affairs. In general, the agent has authority to do whatever the principal may do — withdraw funds from bank accounts, enter into contracts, trade stock, pay bills, cash checks and make medical decisions — except as expressly limited in the power of attorney document. When transacting business on behalf of the Principal, the Agent must use the Principal’s finances as the Principal would use them for the Principal’s own benefit.

Avoid Legal Proceedings and Complications

Without a Colorado Power of Attorney in place at the time of one’s incapacity or unavailability, a legal proceeding would need to be started to have one appointed as the Conservator (Financial) or as the Guardian (Medical) to handle the exact same matters as an Agent appointed in a Colorado Power of Attorney document. In essence, a Colorado Power of Attorney helps maintain family harmony by avoiding the expense of litigation and understanding the wishes of the Principal, in advance.