How Does Durable Financial Powers of Attorney Work?

Q: How Does Durable Financial Powers of Attorney Work?

Also referred to as a durable power of attorney for finances, a durable financial power of attorney works similarly to a durable medical power of attorney in that this type of directive: Specifically appoints some individual to be the agent or attorney-in-fact who will act on your behalf. Clearly outlines your wishes for how certain matters should be handled. A Durable financial powers of attorney can be simple or as complicated as a person wants them to be. For instance, while a simple durable financial power of attorney may only direct that an agent oversee a specific financial transaction (like, for instance, a real estate deal), a more complicated financial directive can empower an agent to do things like: Oversee a person’s bank and investment accounts Pay taxes on behalf of the ailing individual Deposit Social Security checks on behalf of the ailing individual

Denver Financial Power of Attorney

A durable financial power of attorney is a legal document that gives someone the authority to oversee your finances. This in the event that you are unable to do so because you have become mentally and/or physically incapacitated. Making sure that you have a durable financial power of attorney can be critical to ensuring that your financial matters are properly handled. You should name someone you trust if or when you cannot handle these matters on your own at any point.

A Denver financial power of attorney lawyer from Colorado Estate Matters, Ltd., is experienced at developing comprehensive durable financial powers of attorneys for our clients. We can help you develop financial directives that clearly spell out your wishes and that will appropriately protect your assets. Also in case you may not be able to oversee such protections due to an accident, illness or injury. Give us a call for more information (303) 713-9147, or reach us online.

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How Durable Financial Powers of Attorney Work

Also referred to as a durable power of attorney for finances, a durable financial power of attorney works similarly to a durable medical power of attorney in that this type of directive:

Specifically appoints some individual to be the agent or attorney-in-fact who will act on your behalf.
Clearly outlines your wishes for how certain matters should be handled.

A Durable financial powers of attorney can be simple or as complicated as a person wants them to be. For instance, while a simple durable financial power of attorney may only direct that an agent oversee a specific financial transaction (like, for instance, a real estate deal), a more complicated financial directive can empower an agent to do things like:

Oversee a person’s bank and investment accounts
Pay taxes on behalf of the ailing individual
Deposit Social Security checks on behalf of the ailing individual
Manage other assets like, for example, businesses, real estate holdings, etc.

Also the agent named in a durable financial power of attorney does not have to be a financial expert. Instead, this agent simply should be someone whom an individual trusts with their important financial matters. When agents are not financial experts, durable financial powers of attorney can specifically dictate when agents can hire other financial experts (like accountants). They can help to assist in carrying out the directives in the durable financial power of attorney.

Denver Estate Planning Attorneys at Colorado Estate Matters, Ltd.

When you are ready to start a plan, get in contact with a Denver financial power of attorney lawyer from Colorado Estate Matters, Ltd. We provide a thoughtful, comprehensive approach to our clients’ estate planning needs. The attorneys want to provide clients with competent, caring and professional representation.

Our Denver estate planning lawyers 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. They can develop effective, prudent solutions that will protect them, their assets and their families in the future.

Contact A Denver Financial Power of Attorney Lawyer

Let’s discuss your options with a financial power attorney during an initial consultation. To schedule this meeting, call us at (303) 713-9147 or email us using our convenient online contact form.

From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village, Englewood, Centennial, Wheat Ridge, Golden and Arvada.

What is probate in Colorado?

Probate in Colorado is the legal process by which a deceased person’s assets are distributed and their debts are paid under court supervision.

When is probate necessary in Colorado?

Probate is typically required when a person dies with assets solely in their name, and those assets exceed a certain value, or there’s any real estate. The threshold amount changes over time, so checking the current limits is essential.

How do I start the probate process in Colorado?

To initiate probate in Colorado, you need to determine if formal probate is required, and then file an Application or a Petition (as well as the necessary ancillary documents) with the appropriate court, depending on the circumstances.

What assets are subject to probate in Colorado?

Generally, assets that are solely owned by the deceased, such as real estate, bank accounts, and personal property, are subject to probate. Jointly owned assets with rights of survivorship, assets held in a trust, and assets with designated beneficiaries typically bypass probate.

How long does the probate process take in Colorado?

The duration of probate in Colorado can vary depending on the complexity of the estate and any disputes that may arise. Often it takes a year or more to complete.

What are the costs associated with probate in Colorado?

Probate costs in Colorado can include court fees, attorney fees, personal representative fees, and other administrative expenses. These costs can vary based on the size and complexity of the estate.

Can I avoid probate in Colorado?

Yes, there are strategies to avoid probate in Colorado, such as creating a revocable living trust, using beneficiary designations on assets like life insurance policies and retirement accounts, and jointly owning property with rights of survivorship.

What are the rights and responsibilities of a personal representative in Colorado?

The personal representative (executor or administrator) is responsible for managing the estate, paying certain debts and taxes, and distributing assets to beneficiaries in accordance with the law and the deceased person’s will (if one exists).

How are disputes handled in Colorado probate cases?

Disputes in Colorado probate cases can be resolved through mediation, negotiation, or litigation in court if necessary. Common disputes may involve the validity of the will, claims by creditors, or disagreements among beneficiaries.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.
It’s essential to consult with an attorney or legal professional experienced in Colorado probate law to get accurate and up-to-date information and guidance on your probate matter.

Denver Financial Power of Attorney

How Durable Financial Powers of Attorney Work

Denver Estate Planning Attorneys at Colorado Estate Matters, Ltd.

Contact A Denver Financial Power of Attorney Lawyer

Schedule a FREE consultation with us.

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