When an adult child or sibling steps in to help manage a loved one’s money, families hope a power of attorney (POA) will keep life simple. But what if the agent won’t share records, starts moving funds, or shuts out other relatives? This blog can explain how Colorado defines an agent’s legal duties, what “breach of duty” looks like, the most common red flags we hear about, who can ask a court to step in, and what remedies (including restitution and attorney fees) may apply. If you suspect misuse of a POA, this is the playbook to get organized fast.

TL;DR

• POA Abuse vs. Mere Disagreement — Colorado law sets specific fiduciary duties for agents; facts and records matter.
• Common Red Flags — sudden bank changes, transfers, isolation, and missing documentation.
• Court Options — statute lists who may petition a court to review the agent’s conduct.
• Agent Consequences — liability can include restoring assets and repaying attorney fees advanced from the principal’s funds.

POA Abuse vs. Mere Disagreement: What “Breach of Duty” Can Mean

Under Colorado’s Uniform Power of Attorney Act, an agent must act in the principal’s best interest (or in line with the principal’s known expectations), act in good faith, within the scope of authority, keep records of transactions, and preserve the principal’s estate plan when consistent with those duties. Failure to follow these statutory duties is the foundation for a “breach of duty” claim; a simple family disagreement, by contrast, is not abuse if the agent is following the law and the document.

Practical examples a divorce attorney evaluates: unexplained withdrawals; paying the agent’s personal bills from the principal’s account; refusing reasonable accounting requests; or changing beneficiary designations to benefit the agent. A modern family law approach starts with a document review (POA language, dates, and notarization), then builds a neutral timeline of transactions and communications. A Fort Collins attorney can prepare a targeted records demand and advise whether to escalate to court or Adult Protective Services.

Common Red Flags Families Report

Across Colorado, the pattern is strikingly similar. Watch for:

• Banking changes: sudden large withdrawals, unusual wire activity, or new names added to signature cards.
• Transfers and titles: abrupt asset transfers to the agent or third parties, or deeds retitled without clear consideration.
• Isolation: new “gatekeepers,” restricted visits, and blocked phone access, especially when money discussions arise.
• Missing records: refusal to share statements, receipts, or an accounting; disappearing legal or financial documents.

Not every red flag proves POA abuse; some reflect poor bookkeeping or confusion during a health crisis. That’s why a divorce attorney can ask for objective data first: 12–24 months of statements, copies of invoices, and any emails or texts showing the principal’s wishes. This “paper-first” mindset—core to modern family law—keeps families focused on evidence rather than accusation.

Need a fast document plan and an initial risk assessment? Speak with a Fort Collins attorney at Alexander & Associates for a review and next steps. Schedule an appointment.

Court Options: Who Can Petition and What Relief a Court Can Grant

Colorado law spells out who may ask a judge to construe a POA or review an agent’s conduct. Eligible petitioners include the principal, agent, a court-appointed guardian or conservator, a person authorized to make health-care decisions, the principal’s spouse, parent, or descendants, and even presumptive heirs and certain others with a demonstrable interest. The court may then order an accounting, limit or suspend the agent’s authority, or craft other relief appropriate to protect the principal.

If incapacity or asset risk is acute, your attorney may also explore guardianship (personal decisions) or conservatorship (financial oversight) for court supervision—often alongside a petition reviewing POA conduct. Colorado’s judicial branch publishes step-by-step guidance and forms for conservatorship cases, which helps families move quickly when oversight is necessary.

Consequences for an Agent: Restitution and Attorney Fees in Certain Cases

An agent who violates the Act can be liable for restoring the principal’s property to what it would have been but for the violation—and for reimbursing attorney fees and costs that were advanced from the principal’s funds on the agent’s behalf. Importantly, the statute notes that remedies under other law are not exclusive, meaning additional civil claims may also be available when facts warrant.

Courts can also address third-party banks that refuse to honor a properly acknowledged POA without a valid reason; the statute provides for potential liability for refusal in certain scenarios. If a financial institution won’t accept a compliant POA, your divorce attorney can evaluate whether the refusal aligns with statutory defenses or crosses into sanctionable territory.

When misuse is tied to broader exploitation, families should also consider reports to Adult Protective Services and, where appropriate, law enforcement. State guidance recognizes financial exploitation of at-risk adults and routes reports to the right agency. A modern family law plan lines up civil and protective paths in parallel to minimize loss.

Early Documentation and Fast Legal Review Can Limit Harm

In POA disputes, time and records are everything. Gather bank statements, titles, emails, and receipts; compare transactions to the principal’s known wishes; and keep communications factual. Colorado statutes give families (and courts) the tools to review agent conduct, order accountings, and, when appropriate, restore assets and shift fees. Partner with an attorney grounded in modern family law—preferably a Fort Collins attorney who knows local court expectations—to triage risk and pursue the right remedy the first time.