Estate planning is not something that most people think about, or most people want to discuss, but you can save money, potential chaos and hard feelings between those closest to you by preplanning how you want your assets managed if you become incapacitated or how your property will be disposed of when you die.

Powers of Attorney

In Colorado, we can draft a personalized Durable Power of Attorney to appoint someone to handle your assets if you, for any reason,  become incapacitated. Here are some of the issues that a well drafted Durable Power of Attorney can help you deal with:

• Manage and/or transfer all property
• Work with the IRS and dispose of tax issues
  
• Create gifts on your behalf
• Work with any trusts you have set up

Deciding who you should give power of attorney to is a big decision.  Make sure you choose someone that you trust, and someone with whom you feel comfortable discussing your financial situation.

We can also draft a Medical Durable Power of Attorney, which allows you to name someone who can make medical decisions on your behalf if you're unable to do so yourself. This person can provide informed consent for medical treatment or refuse medical treatment if needed.  

What Happens if I Die Without a Will?

If you die without a will (known as dying intestate) in Colorado, certain statutes exist to make sure that your property is divided fairly amongst your immediate family members. If you don't have any kids or parents, your spouse will inherit your entire estate.  If you and your spouse have children, and they are all from that marriage, your spouse will also inherit your entire estate.  There are a number of other scenarios that the statute contemplates, but the general idea is to fairly divide up your estate among your immediate family members.

Alternatives To A Will

In Colorado, alternatives to making a will include:

• Life insurance policies or trusts
• Gifting cash or other assets before your death
• “Transfer On Death” (“TOD”) or “Payable On Death” (“POD”) bank accounts
• Holding assets by joint tenancy with right of survivorship (“JTROS”), with the assets transferring automatically to the other joint tenant at the time of death
• Holding assets through a tenancy in common, with each tenant having a divided interest in the property which can be independently sold
• Retirement plans and Individual Retirement Accounts (“IRAs”)
• ”Revocable living trusts” (sometimes called “grantor trusts”), giving all your assets to a trustee for management before your death
• Holographic wills: if you don't want to pay a lawyer to draft a will for you, you can create a holographic will.  A holograhic will is a will that is handwritten and signed by the person creating the will. 
  

Making A Will

In Colorado, you can make a valid will if you are at least 18 years old and of sound mind. The will must be in signed by you or by another at your direction and in your presence.

Additionally, your will must be signed by at least two individuals after they have witnessed either your signing of the will of your acknowledgment of that signature or acknowledgment of the will. The signing of the will by the witnesses may occur either before or after your death.

A lawyer who does estate planning can explain the consequences of some of the most basic choices you must make, such as whether property you want to leave to your minor children should be put into a trust at your death. For that reason, it makes sense to consult with a our firm so that you don’t make costly mistakes or accidentally not accomplish what you intended.

Providing For Young Children

There are many kinds of trusts, but the most common is one you would set up for your minor children or incapacitated adult relatives for their care after you are gone and until they are old enough or well enough to take care of themselves. A parent can name a trustee to be in control of the finances and decide whether to sell or keep property, and manage assets such as real estate. The trustee, usually a family member or trusted friend, can be paid an hourly rate or a set monthly amount for their services out of the trust assets.

You will probably also want to name a guardian for your children, someone who would have physical custody of and take care of your children on a daily basis should you or your spouse be unable to do so.

“Probate” is the public process of:

• Filing and validating a will in court
• Paying all the debts and taxes of the deceased person
• Dividing up the assets according to the will or Colorado law

Some assets automatically pass by law to certain people. These are called “non-probate assets” Some examples of non-probate assets are money in a joint account, life insurance and retirement accounts. If you have no debts and no “titled property” such as real estate or vehicles to pass along to heirs, there may be no need for probate.

Probate lawyers generally charge by the hour, and they make sure everything gets processed according to the law.

Do you need a will?

Do you need a Power of Attorney?

Are you wanting to establish a trust? 

Contact us today for a free initial consultation.