On February 28, 2015

Resuming Powers of Attorney FAQs (Pt. 1), below are some more helpful responses to common questions regarding powers of attorney.

Powers of Attorney: More Important Info

Q: Should I include “hot powers” in my powers of attorney?

Do you know what “hot powers” are for powers of attorney? If not, check out these FAQs. Or contact us today for experienced help with any estate planning need.

Do you know what “hot powers” are for powers of attorney? If not, check out these FAQs. Or contact us today for experienced help with any estate planning need.

A: It depends on your situation, your needs and your wishes. Hot powers, which are options to include in powers of attorney created in Colorado after January 1, 2010 (per the Colorado law), can include the authority to:

  • Delegate certain responsibilities granted under the powers of attorney
  • Exercise various fiduciary powers
  • Release property held by the principle
  • Step down from the position of agent at any point.

When the designated agent is also a close relative to the Principle (i.e., the person who has established the powers of attorney for himself), such as a child, sibling or parent, the following hot powers may also be granted as part of a specific power of attorney designation:

  • The power to grant gifts
  • The power to revise survivorship and/or beneficiary rights or designations
  • The power to develop, revise or revoke a trust.

Q: When do powers of attorney go into effect?

A: They will go into effect when you determine they should, per the provisions of the official powers of attorney document. Generally, however, there are two ways that powers of attorney take effect:

  1. When a specific event described in the power of attorney document occurs – Usually, this “event” is the official designation of being incapacitated by a medical professional. This is known as a springing power.
  2. When the principle signs the power of attorney document – This is usually referred to as granting a standing power.

It’s important to point out here that these two options for putting powers of attorney into effect are not mutually exclusive, as they can be combined and/or altered to fit a given person’s needs and wishes.

Q: Who should I grant powers of attorney to?

A: A responsible person whom you trust. This can be a spouse, a child, a sibling, etc., or it can be an attorney or some other professional. When it comes to choosing an agent for your powers of attorney, here’s generally what you should keep in mind:

  • Your first choice for an agent may not be available or prepared to step into this role if or when the times comes, so it’s usually advisable to name one or two alternative agents in your powers of attorney documents.
  • If none of your preferred agents can or are willing to assume this role on your behalf, it can be left up to the court to choose an agent or conservator for you.

Don’t miss the upcoming conclusion to this blog for some more important answers and info regarding powers of attorney.

Denver Estate Planning Attorneys at JR Phillips & Associates, PC

Are you ready to put some powers of attorney in place? If so, you can turn to a trusted estate planning attorney at JR Phillips & Associates, PC. We are skilled at using a variety of traditional and innovative approaches to develop solutions that are perfectly tailored to our clients’ needs and objectives. Our goal is to help our clients efficiently navigate the complexities of the law so they can develop effective, prudent solutions that will protect them, their assets and their families in the future.

 

Categories: Estate Planning, Powers of Attorney, Trustees, Executors & Fiduciaries