From the Offices of Michael A. Robinson P.C., an Estate Planning Attorney

A "Power of Attorney" (POA) is an instrument granting someone authority to act as agent or attorney-in-fact for the grantor. The power of an agent under a common law power of attorney normally terminates upon the death or disability of the principal. If the grantor becomes disabled, the POA is without force and effect.

In Colorado, there is a way to get around this difficulty. We have enacted, by statute, the creation of a "Durable Power of Attorney". With a durable POA, the agent has power to act even if the grantor becomes disabled. A Durable POA for business purposes is a great planning tool for spouses and can be very valuable to a family if an accident or illness suddenly befalls a family member. For example, if a couple own their home in joint tenancy and the husband becomes incapacitated, the healthy spouse cannot easily sell the family home because the incapacitated spouse is on the title. You can make the POA have a "springing" power, i.e., it doesn't go into effect until the grantor becomes incapacitated.

In our office we usually have a few people come to the office with a family member who is suffering from Alzheimers or other dementia. They now want a Power of Attorney in order to handle the family member's finances. We have to tell them that now they must seek a guardianship and conservatorship because the ill family member cannot legally grant a Power of Attorney.

In addition, POA's are used for health care directives. Under Colorado Law, you can designate someone to make medical decisions on your behalf if you become incapacitated.

We can help with all your Estate Planning needs. Michael A. Robinson P.C., 900 W. Castleton Rd. #135, Castle Rock, CO 80109, ph. 303-688-0944, MikeRobinson.com