Understanding Powers Of Attorney: A Vital Part Of Your Estate Plan
Powers of attorney are legal documents that give someone the legal authority to act on your behalf if you become incapacitated, whether due to illness, injury or other circumstances. Having a power of attorney in place ensures that your financial, medical and personal needs are handled according to your wishes. Integrating powers of attorney into your estate plan protects not just your interests, but also those of your loved ones, providing peace of mind to everyone involved.
We at Chayet & Danzo, LLC, help people across Colorado develop comprehensive estate plans, including powers of attorney. Our team focuses solely on estate planning, elder law and related areas. Our approach is to deliver high-quality legal services in a cost-effective manner, meeting your legal needs without undue financial burden.
Four Types Of Powers Of Attorney
In Colorado, there are four types of powers of attorney:
- General power of attorney: This covers broad aspects of a person’s life and finances, but it ends in the event of your incapacitation.
- Durable power of attorney: This is similar to a general power of attorney, but it remains in effect (or goes into effect) if you become incapacitated. For that reason, it’s a core component of a thorough estate plan.
- Medical power of attorney: Also known as a health care proxy, this allows you to designate someone to make health care decisions on your behalf if you are unable to do so.
- Limited power of attorney: This tool grants someone specific authority for a limited time or for particular transactions.
Each type serves different needs and scenarios, making it important to choose the right one for your situation. Our lawyers can help you put the right powers of attorney into place.
Health Care Directives (Living Wills)
If you become incapacitated due to a serious accident or illness, decisions regarding life support and resuscitation will have to be made by someone. A health care directive (also called a living will) allows you to specify when to use resuscitation, up to what point, and what end-of-life decisions are to be made if you are in a vegetative state. We can help you incorporate a living will into your estate to work alongside a medical power of attorney.
Frequently Asked Questions About Powers of Attorney
Here are some common questions we hear about powers of attorney in estate planning.
What is a medical power of attorney?
A Medical Durable Power of Attorney (MDPOA) appoints an agent to speak for you regarding medical treatment decisions when you cannot do so yourself. It has a much wider application than a living will because it actually names an agent to look out for your wishes. MDPOAs are also much more flexible because you can set forth your wishes regarding “quality of life” issues. Health care providers are required to comply first with your wishes, then a living will if one is executed, and finally the decisions of your agent under an MDPOA.
On June 4, 1992, new laws were passed that state a previously executed living will would take precedence over the authority given to an agent under an MDPOA. Since living wills are much less comprehensive than an MDPOA and they do not allow for an agent to stand up for your health care wishes, most elder law attorneys favor MDPOAs over living wills. In addition, you will always want to revoke any previously executed living will when you execute a new MDPOA. This can be done within the MPDOA itself, with a clause stating that you are revoking any previous living wills.
What is a financial power of attorney?
If you are incapacitated, a financial power of attorney, also known as a durable power of attorney, is crucial because it allows the agent that you trust to pay your bills, manage your assets, and generally attend to your affairs.
A durable power of attorney is very important and is one of the least expensive tools available for estate planning. If you don’t have a power of attorney and you become incapacitated, the court may appoint someone to serve as your conservator and guardian. This procedure is expensive, time-consuming, and very stressful.
Remember, the time to execute a power of attorney is before you may need it, not when an accident or illness has already occurred. You cannot execute a durable power of attorney after you have become incapacitated.
What is a proxy decision maker?
If you become incapacitated and you did not previously sign an advance medical directive, a proxy can make some medical decisions for you.
Your physician must first try to locate as many of the following people as possible: your spouse, your parent, your children or grandchildren and your close friends. These family members and friends select a proxy medical decision-maker for you. Then, the proxy has the authority to make limited medical treatment decisions for you.
The proxy may not withdraw artificial nourishment or hydration “tube feeding” except under limited circumstances that are specified by statute.
What happens if I don’t have a power of attorney?
Without a power of attorney, the courts may need to appoint a guardian or conservator, which can be a lengthy and costly process.
Can I revoke a power of attorney?
Yes. You can change or revoke a power of attorney whenever you wish, so long as you aren’t incapacitated.
Do I need a lawyer to create a power of attorney?
While it’s not legally required, working with a qualified lawyer provides peace of mind knowing that your document is legally sound and tailored to your specific circumstances.
Schedule Your Free Consultation Today
Preparing for the future might seem like a complex task, but with the right guidance, it becomes much simpler. We’re ready to help you craft a power of attorney that aligns perfectly with your estate planning goals. We offer free initial consultations. Call 303-872-5980 or send us a quick email to get started. We have offices in Denver and Edwards and can travel to meet you if needed.