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Estate Planning – Answers about Powers of Attorney #7

by Bob Frie

In every power of attorney, there are powers that are outlined and for the agent. Some have heard the term “hot powers”.

“What are “hot powers”?

For all Powers of Attorney signed after January 1, 2010, you must state that the agent has certain powers, casually referred to as “hot powers.” These “hot powers” include the power of the agent to:

1. Make a gift;
2. Create or change rights of survivorship;
3. Create or change a beneficiary designation;
4. Create, amend, revoke, or terminate a trust;
5. Delegate authority granted under a power of attorney;
6. Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan;
7. Exercise various powers held by the principal in a fiduciary capacity;
8. Disclaim or release property or a power of appointment;
9. Exercise powers, rights, or authority as a partner, member, or manager of a partnership.

If the power of attorney does not include these “hot powers” then the agent lacks the authority to exercise any of these powers for you. The “hot powers” are all listed as options in the State of Colorado statutory power of attorney form mentioned above.

You may not use your authority in “hot powers” one through three above, if the Principal is not your parent, grandparent, spouse, sibling or child, even if the Power of Attorney authorizes you to take such actions.”

This article was published as a pamphlet as a public service by the Colorado Bar Association. Its purpose is to inform citizens of their legal rights and obligations and to provide information regarding the legal profession and how it may best serve the community. Before relying on this information, consult an attorney about your individual case.

 

Thank you for following our blogs of the answers to common questions about powers of attorney. Our office has drafted thousands of powers of attorney and would be more than happy to assist you in this process.