What is a power of attorney?

A power of attorney is a legal document that allows someone to give another person, known as the attorney-in-fact, authority to act on their behalf. In Colorado, this document is legally referred to as a statutory durable power of attorney (SDPA). The person granting authority is known as the principal, and the person receiving the authority is known as the attorney-in-fact or agent. With a power of attorney, the principal can grant the attorney-in-fact the authority to sign legal documents, handle bank and financial accounts, manage real estate, sign tax documents and pay bills, among other powers. The principal determines which powers to grant, and the scope of each power. The principal also determines the limits of the agent’s authority, which are typically clearly stated in the power of attorney, or in a separate document that accompanies it. The principal must be mentally competent when signing the power of attorney document in order for it to be legally binding. The document must also be signed in the presence of two witnesses who are not beneficiaries of the document. In addition, a copy of the power of attorney document must also be filed with the court. A power of attorney in Colorado can prove to be a beneficial tool when it comes to guardianship law. In some cases, a power of attorney can be used to avoid having to go through the process of a full guardianship. It is important to note that the powers granted in a power of attorney can also be revoked at any time, often with a simple notice to the attorney-in-fact.

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