Most people think estate planning is only about wills and trusts—but some of the most important protections are needed long before you pass away. A power of attorney (POA) is an incapacity planning document that ensures if you become unable to make decisions for yourself, someone you trust can step in and act on your behalf.

At The Law Office of Kevin R. Hancock, we consider POAs foundational documents for every adult in Colorado—whether you’re 18 or 80, married or single, wealthy or just starting out.  Here’s what you need to know about how Powers of Attorney work in Colorado and why having them in place is essential.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the “principal”) to appoint another person (the “agent”) to make decisions on your behalf. In Colorado, POAs fall into two primary categories:

1. Medical Power of Attorney (MPOA)
2. Financial Power of Attorney (FPOA)

Each one serves a different purpose—and both play a critical role in protecting you and your family.

1. Medical Power of Attorney (MPOA)

A Medical Power of Attorney allows your appointed agent, presumably someone you trust, to make healthcare decisions if you become unable to communicate or make those decisions yourself.  Your medical agent may be responsible for decisions about:

• Treatment options
• Surgeries or procedures
• End-of-life preferences
• Medication or pain management
• Choosing healthcare facilities

Unlike many states, Colorado does not automatically assign your spouse or family member as your agent. Without a valid MPOA, family members may disagree, healthcare providers may have limited guidance, and your family may need to pursue a costly guardianship through the Courts.

Learn more about Powers of Attorney.

2. Financial Power of Attorney

A Financial POA allows your agent to manage your property, financial and legal matters, if you are incapacitated.  This may include:

• Paying bills
• Managing bank accounts
• Filing taxes
• Handling real estate transactions
• Overseeing investments
• Managing insurance or retirement accounts

Without a Financial POA, your family may need to pursue a costly and time-consuming court-appointed conservatorship just to access funds or handle bills on your behalf.

Why Every Adult in Colorado Needs a POA

Most people assume POAs are only for the elderly but emergencies do not discriminate by age. Every adult over the age of 18 should have powers of attorney in place, especially if:

• You live alone
• You travel often
• You have children or dependents
• You own property
• You want someone you trust to handle your medical or financial decisions

Life can change in an instant, and your legal preparation should not wait.

When Does a Colorado POA Go Into Effect and How Long Does It Last?

Power of Attorney documents may be:

• Immediate (meaning they are effective as soon as you sign)
• Springing (meaning they become effective only upon incapacity)
• Durable (meaning they remain in effect even when you are incapacitated)

For medical POAs, these are only ever set up to be springing and durable, which means your agent only has authority to make decisions for you upon you being determined to be incapacitated and their authority to act continues when you are incapacitated.  

For financial POAs, they are typically set up to be immediate and durable between spouses, and thereafter, springing and durable for agents other than a spouse.  

Once a POA is in effect because of incapacity, the POA will last until you regain capacity or until you pass.  All POAs cease to be effective when the principal passes. 

Can You Change or Revoke a POA?

Yes. As long as you have capacity, you may:

• Update
• Replace
• Limit
• Or revoke entirely your existing Power of Attorney.

Regular updates are recommended if:

• Your relationships change
• Your agent moves away
• You marry or divorce
• Your wishes evolve

→ If you’re updating, visit our Estate Planning Services page to get started.

Common Misconceptions About Powers of Attorney

❌ “My spouse can automatically make decisions for me.”

Not in Colorado—POAs are still needed.

❌ “I only need one document.”

You need both a medical and financial POA.

❌ “I’m too young for this.”

Once you turn 18, no one—including parents—can legally speak for you without a POA.

❌ “My will covers that.”

A will directs who gets your probate property when you pass.  It has no effect during your lifetime.  POAs required to protect you while you are alive.

FAQ

What are the two most common types of power of attorney in Colorado?

Medical Power of Attorney and Financial Power of Attorney.

Does a POA need to be notarized in Colorado?

Yes.

Who should I choose as my POA agent?

Someone trustworthy, responsible, and capable of making decisions in your best interest.

Can I name different agents for medical and financial decisions?

Yes, many people do.

Protect Yourself and Your Family with Proper POA Documents

A Power of Attorney is one of the simplest—and most important—steps you can take to protect your future. At The Law Office of Kevin R. Hancock, we walk you through each decision to make sure your documents reflect your wishes clearly and legally.

If you need help creating or updating your POA documents, call us or fill out an online form today. We’re here to help you prepare with confidence.