![]() This means that if you have a standard (non-durable) power of attorney and your mental capacity declines to a point where you are deemed mentally incompetent, a power of attorney expires. The main difference is that DPOA remains effective even if you become mentally incompetent.Īt the same time, the latter is only valid if you’re mentally competent. For instance, if you have dementia, your agent will lose decision-making power. A general power of attorney ( non-durable) is no longer adequate if you become mentally incapacitated.For example, your agent can continue (or start) acting on your behalf if you’re diagnosed with dementia. A durable power of attorney allows your agent to decide on your behalf even if you become incapacitated.The difference between a Durable Power of Attorney and a Power of Attorney is that the former remains in effect even if you become incapacitated, while the latter does not. This form includes important information such as your Social Security number, the name and mailing address of your representative(s), and a description of the matter(s) for which they are authorized to represent you. To authorize your DPOA to represent you in front of the IRS and take care of your taxes, you’ll need to fill out IRS Form 2848. It can be used for tax purposes to appoint someone to act on your behalf if you become incompetent or unable to act. Under Section 104 of the UPOAA, a power of attorney is “ durable unless it expressly provides that it is terminated by the incapacity of the principal.” That means a power of attorney will be effective beyond the principal’s incapacity. One key element of the UPOAA is the default rule regarding durability. “Durable,” with respect to a power of attorney, means not terminated by the principal’s incapacity. The term “ durable” is defined in Section 102(2) of the UPOAA as: The power ends when you pass away or revoke or under the circumstances outlined in the document. Most significantly, it remains in effect even if you are incapacitated. It is adequate when you choose when it’s signed or upon your incapacitation. With this document, the person granting or giving the power is called the “principal.” The person receiving the power to act is called the “attorney-in-fact” or “agent.” ![]() In addition, the agent has the option to have their signature acknowledged on the Agent’s Certification to certify facts concerning a power of attorney ( § 15-14-705, § 15-14-742).PDF Word What is a Durable Power of Attorney (DPOA)?Ī durable power of attorney is a document you can create, giving another individual the power to act in your place and manage your financial, business, legal, or medical affairs if you cannot do so. The principal must sign the power of attorney in the presence of a notary public. In Colorado, all powers of attorney are considered durable upon execution, meaning the agent retains authority to act on the principal’s behalf if the principal becomes incapable of making his or her own decisions. The Colorado form requires principals to affirmatively select other powers if they wish to grant them, such as terminating an inter vivos trust or disclaiming an interest in property, because these actions could significantly reduce the principal’s property. See Guide on Common Questions For Financial POA This can be quite convenient if you need someone to handle routine transactions like withdrawing cash because your business needs cash on hand. The principal may also select any one of these or a combination of them to limit the agent’s authority. The form allows the principal to select a general power of attorney option, meaning that the agent may handle almost many financial matters on behalf of the principal, including general power over real estate, insurance and annuities, stocks and bonds, litigation, taxes, and others. This can include cashing checks, withdrawing money from an account, and selling and buying property in the principal’s name. Legal document entitles someone to handle financial matters on your behalf. ![]() Colorado Statutory Power of Attorney Form.pdf.
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