A power of attorney is a document in which you (the “principal”) give another person (your “agent”) authority to act for you. An estate plan which addresses only death leaves a gap: if you become unable to manage your affairs through illness, injury or age, someone must have legal authority to pay your bills and make your medical decisions. Without powers of attorney, that authority usually requires a court proceeding to appoint a conservator or guardian, which is slower, more expensive and public.
The Documents We Prepare
Financial power of attorney. This gives your agent authority over your finances and property (e.g., banking, bill-paying, real estate, insurance and government benefits). Under Colorado law, a power of attorney remains effective if you later become incapacitated unless the document says otherwise. Some clients prefer a “springing” power of attorney, which only takes effect upon incapacity; we will explain the trade-offs, since a springing power can delay an agent’s ability to act when it is most needed.
Medical durable power of attorney. This names the person who will make health care decisions for you if you cannot make or communicate them yourself.
Advance directive. Often called a “living will,” this states your wishes about life-sustaining treatment if you are terminally ill or permanently unconscious. On request, we prepare directives written to reflect Catholic moral teaching on end-of-life care.
Declaration for disposition of last remains. This names the person who will decide on burial, cremation and services, and records your wishes on each.
Choosing an Agent
The most important decision is whom to name. Your agent should be someone you trust completely, who is organized enough to keep records and who is likely to be available when needed. Consider whether that person will still be able to serve in ten or twenty years (e.g., a sibling close to your own age), and name at least one alternate. A financial power of attorney is limited to the authority it grants, and some powers (e.g., making gifts or changing your beneficiary designations) must be stated expressly.
Powers of attorney are part of every estate plan we prepare, and they can also be prepared on their own.