WALTEMATH LAW OFFICE

Top Ten Facts About Powers of Attorney

• The person signing the power of attorney giving someone else the authority to act for them is called the “principal” and the person who is given the power to act for you is called your “agent”.
• Powers of attorney are not legally effective after your death. Powers of attorney may not be used after the death of the principal.
• The agent only has the authority you specifically authorize in your power of attorney.  The law was changed in 2010 so that general language in a power of attorney may not be enough to authorize certain transactions.
• Your power of attorney is effective immediately (not upon your incapacity), unless there is language stating that it is only effective upon your incapacity or disability.
• If you have named more than one agent, your agents may act independently unless your power of attorney states otherwise.
• Banks and investment companies must honor your power of attorney, they cannot force you to sign their power of attorney forms.  In 2010 Colorado law was changed to impose liability on third parties who refuse to honor your current power of attorney without reasonable cause.
• You must expressly grant your agent the authority to create a trust in your power of attorney, if you anticipate the need for a trust in the future.
• An agent should not use your property to benefit themselves, unless you give them specific authority. They may need this authority if you own property jointly with them.
• Your agent has the legal responsibility to report financial abuse and your agent is required to take any action reasonably appropriate to safeguard your best interest.
• If an agent fails to notify the principal of abuse by others or take action against the abuser, the agent may be liable for reasonably foreseeable damages that could have been avoided, which include the obligation to restore assets plus reimburse you for attorney fees.