Estate Planning
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Estate planning is more than protecting assets; it is a proactive way to make sure that your wishes as to your property and your care are clearly designated so that your family does not have to make these decisions. You can nominate a guardian for your children, provide direction about how your end of life care should be handled, and select trusted family members to act on your behalf in the event you are injured or incapacitated. A basic estate plan is necessary for all of us to avoid confusion and disagreements between our loved ones, and to honor and preserve our legacy, whatever that entails.
Estate Planning Services Offered
Trusts
A common misconception about trusts is that they are primarily for individuals or families with high net worths, or who own multiple properties (real estate). At its simplest, a trust is an arrangement made for the purpose of protecting assets and property for the benefit of another; title is held by the trustee who manages the asset while the use of the property is enjoyed by the beneficiary. A trust is a private legal agreement that allows the settlor (grantor) of the trust to determine to whom and how their property is distributed. A trust provides many benefits including avoiding the probate process and allowing assets to be made available to one’s family immediately after passing away or in the event of incapacity. Trusts also reduce and limit the likelihood of a dispute regarding how property is distributed upon the death of the grantor. In contrast to a will, a trust can also provide support to the grantor and their spouse and children if they are living but incapacitated.
A revocable trust (living trust) is an agreement created during the lifetime of the grantor through which property and assets can be transferred into the trust while the grantor is living, and allow them to be distributed according to the terms of the trust upon death. A revocable trust allows the grantor as trustee of their trust the flexibility to manage assets transferred to the trust during their lifetime just as with other non-trust property.
Wills
A will is a document that directs how your property is to be distributed upon your death. If you die without a will, it will mean that the state will determine how your property will be distributed to family members, but without your direction. Wills in Colorado must go through the probate process, which is a judicial proceeding for recognizing a will and assigning an executor of that will. The executor (personal representative) then has the responsibility of managing your property and distributing your assets as directed by the terms of your will. If you have minor children, a will can include a testamentary trust which will govern the distribution of assets to be held in trust until your children (or grandchildren) are no longer minors. You can also nominate someone to care for your children (guardian) through a guardian designation in connection with your will.
Powers of Attorney
A power of attorney is a document that authorizes a trusted family member or friend to make medical or financial decisions on your behalf in the event that you are incapacitated, adjudicated incompetent, or in some cases for elderly people who do not want the burden of managing personal financial matters. By assigning a general power of attorney (GPOA) to your spouse, a sibling, adult child or other close relative, you can rest assured that if you are ill or in an accident your property and finances will be managed without disruption, which protects your family. With a medical power of attorney (MPOA), you are assigning the power to make medical decisions on your behalf in consultation with your care providers and, if applicable, the terms of your living will. Powers of Attorney assign authority to others as your agents while you are living, whereas a last will and testament (or trust) directs your representatives at the time of death.
Living Will (Advanced Medical Directive)
A living will (also known as an Advanced Medical Directive) is an estate planning document that specifies your preferences for end of life care, including life-sustaining measures and palliative care. In the event the creator of the living will is no longer competent to consent to medical treatment and make decisions on their own, the living will directs care providers as to that person’s wishes regarding in what way and how long they will remain on life support. Creating a living will allows your family and loved ones to then rely on your directives instead of being in a position of making these difficult decisions themselves.
