Colorado Joint Power of Attorney

Colorado Joint Power of Attorney  

We often get asked to name multiple children as Colorado joint power of attorney.  This is typically on a medical power of attorney, financial power of attorney and as trustee. While there are legitimate reasons to name a Colorado joint power of attorney, there are potential costs.

A power of attorney is a written document appointing a person to act as an agent for the principal. The most common powers of attorney are medical and financial. Sometimes, one document appoints both a medical and financial power of attorney. We typically use two separate documents.

A typical financial power of attorney is a “live document” – meaning that once the financial power of attorney is executed, the power holder can act. A medical power of attorney is typically a “springing power” – so long as the individual granting the power can act for themselves, the agent has no power to make medical decisions.

Many parents will name two or more children as joint agents. As a general rule, we try to dissuade clients from doing so.  This is especially true with the medical power of attorney.

Potential Problems With A Colorado Joint Power of Attorney

A Colorado joint power of attorney can become very expensive should the power holders not agree. The impending death or disability of a parent can bring emotions to the surface in even the most, well-adjusted families. Having two or more children making medical decisions jointly for a parent can result in additional friction. If the Colorado joint power of attorney cannot agree, they must each seek out independent legal counsel. Even when they do agree, coordinating a joint decision can take additional time and money.

The problems are not necessarily as pronounced with a Colorado joint power of attorney for financial matters.  There may be good reason to not let one individual make all financial decisions. Letting one individual have unfettered access to finances can result in waste or even theft.

A joint power of attorney can work.  A joint power of attorney does not always result in problems. The holders of a joint power of attorney work can it out. Unfortunately, when don’t work it out, the expense is great and hard feelings abound. Think carefully before creating a Colorado joint power of attorney.