What is a durable power of attorney?

A Durable Power of Attorney (DPOA) is a legal document that allows you to designate someone else to manage your financial affairs if you become incapacitated or are otherwise unable to do so. In Colorado, it is also referred to as a durable financial power of attorney. Once the document is signed and witnessed, your designated individual (known as your “agent” or “attorney-in-fact”) is authorized to act on your behalf in any necessary financial matters, including but not limited to paying your bills, investing your money, filing taxes on your behalf, and more. The DPOA document will specify the extent of your agent’s authority and will stay in effect until you become incapacitated or die. The DPOA document is only for financial matters and does not extend authority to make medical decisions. For that, you would need to sign a separate medical power of attorney document. The key point to remember is to choose an individual – or individuals if you wish – you trust to represent your interests. This person should be more than just familiar with the care and discretion needed when handling important transactions. Ultimately, you will be held responsible for any mistakes made by your designated representative, so it’s important to ensure he or she is up to the task.

Related FAQs

Can I change the terms of a trust?
What is a living will?
What is a durable power of attorney?
How do I set up a trust?
What is an inheritance tax?
What is a living will?
What is a special needs trust?
What is a discretionary trust?
How do I wind up an estate?
What are the requirements for creating a trust?

What is a durable power of attorney?

Related FAQs

Related Blog Posts