DURABLE FINANCIAL POWER OF ATTORNEY
(State of Colorado)
[// GUIDANCE: This template is drafted to comply with the Colorado Uniform Power of Attorney Act (“UPOAA”). All bracketed items [IN ALL CAPS] must be completed or modified by counsel before execution. Do not delete statutory notices appearing in ALL CAPS unless state law is amended to permit their removal.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
3.1 Grant of General Authority
3.2 Grant of Specific Authority
3.3 Acceptance & Term of Appointment - Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Agent Certification (Optional)
1. DOCUMENT HEADER
This Durable Financial Power of Attorney (this “Power of Attorney”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
• [FULL LEGAL NAME OF PRINCIPAL], residing at [ADDRESS] (“Principal”); and
• [FULL LEGAL NAME OF AGENT], residing at [ADDRESS] (“Agent”).
Recitals
A. Principal desires to appoint Agent to manage Principal’s property and financial affairs.
B. This Power of Attorney is intended to be durable and to remain in effect notwithstanding the subsequent incapacity of Principal.
C. The parties intend that third persons may rely on the authority granted herein in accordance with Colorado law.
2. DEFINITIONS
For purposes of this Power of Attorney the following terms have the meanings set forth below:
“Act” means the Colorado Uniform Power of Attorney Act, as amended.
“Assets Under Management” means all property subject to Agent’s authority at any given time.
“Digital Assets” means electronically stored information, online accounts, and associated access credentials.
“Durable” means not terminated by the incapacity of Principal.
“Incidental Costs” means reasonable expenses incurred in good faith performance of fiduciary duties.
“Interested Person” means Principal, Agent, successor agent, spouse, registered domestic partner, adult child, or any person entitled to receive accountings under the Act.
“Successor Agent” means any person designated pursuant to Section 3.3(c).
[// GUIDANCE: Add or delete defined terms to match the customized grant of authority.]
3. OPERATIVE PROVISIONS
3.1 Grant of General Authority
Subject to the limitations set forth herein, Principal grants Agent authority to act for Principal with respect to all matters permissible under the Act, including without limitation:
a. Real property transactions
b. Tangible personal property transactions
c. Banking and other financial institution transactions
d. Business operations
e. Insurance and annuity transactions
f. Estate, trust, and beneficiary transactions
g. Claims and litigation
h. Personal and family maintenance
i. Government benefits
j. Retirement plans
k. Taxes
l. Digital Assets
[// GUIDANCE: Cross out any category the Principal does not wish to grant.]
3.2 Grant of Specific Authority
The following powers are NOT granted unless specifically initialed by Principal:
| Principal’s Initials | Specific Authority |
|---|---|
| ___ | Make gifts, including to Agent |
| ___ | Create, amend, revoke, or terminate inter vivos trusts |
| ___ | Create or change survivorship or beneficiary designations |
| ___ | Delegate authority granted herein |
| ___ | Exercise fiduciary powers held by Principal |
| ___ | Disclaim or refuse an interest in property |
[// GUIDANCE: Colorado law requires express authorization for each item above.]
3.3 Acceptance & Term of Appointment
a. Agent accepts the appointment upon first exercising authority.
b. This Power of Attorney is durable and shall continue until revoked or terminated pursuant to Section 10.
c. Successor Agents:
• First Successor: [NAME], [CONTACT INFO]
• Second Successor: [NAME], [CONTACT INFO]
4. REPRESENTATIONS & WARRANTIES
4.1 Principal represents that:
a. Principal is at least 18 years of age and of sound mind.
b. Execution of this document is voluntary and free from undue influence.
4.2 Agent represents that:
a. Agent is at least 18 years of age and willing to serve.
b. Agent is not currently subject to any order of a court disqualifying Agent from serving in a fiduciary capacity.
c. Agent will exercise the authority granted in accordance with Principal’s reasonable expectations to the extent actually known by Agent and, if unknown, in Principal’s best interest.
5. COVENANTS & RESTRICTIONS
5.1 Fiduciary Duties. Agent shall:
a. Act loyally for the benefit of Principal;
b. Act in good faith and within the scope of authority;
c. Keep records of all receipts, disbursements, and transactions;
d. Provide accountings to Interested Persons upon reasonable written request.
5.2 Record-Keeping. Agent shall maintain contemporaneous financial records for a minimum of [7] years after termination.
5.3 Co-Agents. Unless expressly provided otherwise, co-agents (if any) must act jointly.
5.4 Compensation. Agent shall be:
☐ Uncompensated (reimbursement of Incidental Costs only)
☐ Compensated at [$____ per hour / reasonable statutory compensation].
6. DEFAULT & REMEDIES
6.1 Events of Default. The following constitute defaults:
a. Breach of fiduciary duty;
b. Conversion or misapplication of Principal’s property;
c. Failure to render a requested accounting within 30 days.
6.2 Cure Period. Principal or an Interested Person may provide written notice specifying the default. Agent shall have 15 days to cure where the default is curable.
6.3 Remedies. Upon uncured default, Principal or a court of competent jurisdiction may:
a. Revoke Agent’s authority;
b. Compel an accounting;
c. Surcharge Agent;
d. Seek injunctive relief to prevent dissipation of assets; and/or
e. Recover reasonable attorneys’ fees and costs.
7. RISK ALLOCATION
7.1 Limitation of Liability. Agent shall not be liable for any action taken in good faith and in accordance with this Power of Attorney and the Act, except for actions arising from gross negligence, willful misconduct, or breach of fiduciary duty.
7.2 Indemnification. Principal shall indemnify and hold harmless Agent from and against all claims, liabilities, and expenses arising out of lawful acts performed within the scope of authority, provided that indemnification shall not extend to matters resulting from Agent’s breach of fiduciary duty.
7.3 Liability Cap. To the fullest extent permitted by law, Agent’s aggregate liability to Principal shall not exceed the lesser of:
a. The total Assets Under Management at the time the liability arises; or
b. [$ AMOUNT].
[// GUIDANCE: Confirm enforceability of any liability cap under current Colorado law.]
8. DISPUTE RESOLUTION
8.1 Governing Law. This Power of Attorney shall be governed by and construed in accordance with the laws of the State of Colorado, without regard to conflict-of-laws principles.
8.2 Forum Selection. Exclusive venue for judicial proceedings arising under this Power of Attorney shall lie in the probate court of [COUNTY], Colorado.
8.3 Arbitration (Limited). Except for (i) petitions for injunctive or fiduciary relief, or (ii) routine probate court supervision, any dispute between Principal and Agent concerning construction or enforcement of this Power of Attorney shall be submitted to binding arbitration in [CITY], Colorado before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association.
8.4 Jury Trial Waiver. To the extent permitted by law, the parties knowingly and voluntarily waive the right to a trial by jury in any action arising out of this Power of Attorney.
8.5 Injunctive Relief. Nothing in this Section shall limit the right of Principal or any Interested Person to petition a court for emergency or interim equitable relief to safeguard Principal’s property.
9. GENERAL PROVISIONS
9.1 Amendment & Waiver. This Power of Attorney may be amended only by a written instrument executed with the same formalities as this document. No waiver shall be effective unless in writing and signed by the party against whom enforcement is sought.
9.2 Assignment & Delegation. Agent may not delegate authority except as expressly authorized in Section 3.2. This Power of Attorney is personal to Agent and may not be assigned.
9.3 Successors & Assigns. This Power of Attorney shall inure to the benefit of, and be binding upon, the heirs, personal representatives, successors, and permitted assigns of the parties.
9.4 Severability. If any provision is determined unenforceable, the remaining provisions shall remain in full force and the document shall be construed to give maximum effect to the intent of the parties.
9.5 Integration. This Power of Attorney constitutes the entire understanding of the parties with respect to the subject matter and supersedes all prior powers of attorney granted by Principal, except [INSERT IF SPECIFIC POA IS TO REMAIN IN EFFECT].
9.6 Counterparts; Electronic Signatures. This Power of Attorney may be executed in counterparts, each of which shall be deemed an original. Signatures transmitted electronically or by facsimile shall be deemed originals.
10. REVOCATION & TERMINATION
10.1 Revocation by Principal. Principal may revoke this Power of Attorney at any time by (i) executing a written revocation, and (ii) delivering such revocation to Agent and to all known third parties relying upon this Power of Attorney.
10.2 Automatic Termination. This Power of Attorney terminates upon:
a. Principal’s death;
b. Full revocation pursuant to Section 10.1;
c. Appointment of a conservator of Principal’s estate, unless the court orders otherwise;
d. As otherwise provided by the Act.
10.3 Knowledge of Termination. Any action taken by Agent without actual knowledge of termination shall be valid and binding on Principal and Principal’s estate.
11. EXECUTION BLOCK
STATUTORY NOTICE TO PRINCIPAL
“THIS IS AN IMPORTANT LEGAL DOCUMENT. BEFORE SIGNING, YOU SHOULD KNOW THESE IMPORTANT FACTS:
(1) A power of attorney gives the person you designate (your ‘Agent’) broad powers to handle your property, which may include powers to …
[Statutory notice continues as required under the Act]”
[// GUIDANCE: Colorado requires the full statutory notice appear in conspicuous type. Do not alter.]
Principal
[PRINTED NAME OF PRINCIPAL]
Date: ___
State of Colorado )
County of ___ ) ss.
Acknowledged before me on __, 20____ by [PRINCIPAL NAME].
Notary Public
My commission expires: _______
Agent
“I, [AGENT NAME], have read the attached Durable Financial Power of Attorney and accept the appointment.”
[AGENT SIGNATURE]
Date: ___
OPTIONAL – Agent’s Certification
[// GUIDANCE: The Act provides a statutory Agent’s Certification form that third parties may request. Insert the statutory form here if the Principal wishes to pre-execute.]
12. AGENT CERTIFICATION (OPTIONAL)
I, [AGENT NAME], certify under penalty of perjury that I have accepted the appointment and that, to the best of my knowledge, this Power of Attorney remains in full force and effect.
[AGENT SIGNATURE]
Date: ___
State of Colorado )
County of ___ ) ss.
Subscribed and sworn before me on __, 20____.
Notary Public
My commission expires: _______
[// GUIDANCE: Review local recording requirements if this Power of Attorney will be used for real property transactions. Some Colorado counties require additional margin and font specifications for recordation.]