Under Colorado law, the ability to sign a contract, including a power of attorney, is a fact-based determination. Having dementia does not automatically preclude someone from having the legal capacity to sign. The critical legal standard for the ability to contract is whether the individual understands the nature of the contract and the consequences of signing it. This means evaluating whether your father can comprehend the significance of granting a power of attorney and can make a decision based on this understanding.

Regarding the situation with the incomplete General Power of Attorney and the need for a Healthcare Power of Attorney, obtaining a letter from a doctor stating that your father has dementia will likely not be sufficient as it appears the FLTC is looking for someone that has the right to legally act on behalf of your father. If your father lacks the capacity to understand and sign a new power of attorney due to his dementia, then you may need to consider obtaining guardianship.

Guardianship is a legal relationship where the court appoints an individual (the guardian) to make decisions for someone (the ward) who is unable to make decisions for themselves due to incapacity. This process is more complex and involved than obtaining a power of attorney because it requires a court hearing and a judge's decision to determine the necessity and appropriateness of appointing a guardian to make decisions on behalf of the person with dementia.

If you would like to talk to our attorneys about the steps you need to take to resolve the situation, please contact us at (303) 688-0944.