Estate planning is the process of organizing your legal and financial affairs so your wishes are followed if you become incapacitated or pass away.

A well designed estate plan typically includes documents that allow trusted individuals to manage your finances, make medical decisions, and distribute your property according to your instructions.
Estate planning is not only about death. It is also about protecting you and your family during life.

Most adults should have a will. A will allows you to decide who receives your property and who will administer your estate.

If you have minor children, a will also allows you to nominate a guardian. Without a will, Colorado law determines who receives your property, and the court decides who administers the estate.

There are many different types of trusts, such as a revocable living trust, a testamentary or contingent trust, and special needs trusts.

A trust can be helpful when:
• you have children under age 27 (or you would like ongoing management of an inheritance)
• you own real property in another state
• a beneficiary has special needs
• a beneficiary has concerns such as addiction, gambling, or significant spendthrift tendencies

However, a trust does not eliminate the need for other estate planning documents such as powers of attorney or a pour-over will.

If someone dies without a will, their estate is distributed according to Colorado’s intestacy laws.
These laws determine which family members inherit property. While the system works reasonably well in many situations, it may not reflect what the person would have wanted.

Creating an estate plan allows you to make those decisions yourself rather than relying on default state rules.

Probate is the legal process used to determine the validity of the will and administer a deceased person’s estate. During probate, a personal representative gathers assets, pays debts, and distributes the remaining property to beneficiaries.

Colorado offers an informal probate process, which is often simpler and less expensive than people expect. Many estates in Colorado are administered through informal probate. The informal probate process is only available if there’s a self-proving will.

Not always and not recommended.

A trust can help avoid probate for assets that are properly transferred into the trust. However, assets that are not titled in the trust may still require probate. Also, only the probate process forbids a future creditor from making a claim on the estate.

For these reasons, even people with trusts have probate proceedings.

Most Colorado estate plans include several core documents:
• Last Will and Testament
• Financial Power of Attorney
• Medical Power of Attorney
• Living Will or advance directive
• Revocable Living Trust (in some cases)

These documents work together to provide instructions for both incapacity and death.

You should review your estate plan periodically and update it when major life events occur.

Common reasons to update an estate plan include:
* marriage or divorce
* birth or adoption of children
* significant changes in assets
* significant changes in health
* moving to a different state
* changes in relationships with beneficiaries

Even without major life changes, it is a good idea to review your plan every few years.

Yes. Estate planning is not only for retirees or wealthy families.

Younger adults often need estate planning to:
• appoint guardians for minor children
• designate decision makers for medical or financial issues
• ensure assets pass to the intended beneficiaries

Even a basic estate plan can provide valuable protection.

Many married couples assume everything automatically goes to the surviving spouse. While that is often true for jointly owned assets, it does not cover every situation. Also, in Colorado, parents of a married couple may inherit through intestacy if the couple doesn’t have kids.

An estate plan can clarify how assets should pass after both spouses have died, name guardians for minor children, and appoint trusted individuals to handle financial or medical decisions if one spouse becomes incapacitated.

A power of attorney allows someone you trust to make decisions on your behalf if you cannot act for yourself.

Most estate plans include two types of powers of attorney:
• Financial Power of Attorney, which allows someone to manage financial matters
• Medical Power of Attorney, which allows someone to make healthcare decisions

These documents can be extremely important if you become temporarily or permanently incapacitated.

Colorado law does allow individuals to create their own wills, but mistakes can cause problems during probate.

Common issues include unclear language, missing provisions, or failing to properly execute the document according to legal requirements.

Working with an attorney helps ensure that your will clearly reflects your wishes and complies with Colorado law.

For most families, creating an estate plan is a straightforward process. After gathering information about your family and assets, the documents can usually be prepared within a short period of time.
The most important step is discussing your goals so the plan reflects your wishes and provides appropriate protection for your family.

The cost of estate planning varies depending on the type of plan and the complexity of your situation.
Some individuals need only a will and powers of attorney, while others may benefit from a revocable living trust or more detailed planning.
During an initial consultation we can discuss your goals and determine the type of plan that makes the most sense for your situation.