Colorado Elder Law: Estate Planning

Denver, Colorado Estate Planning Lawyers

Estate planning is the process whereby families develop a plan that ensures that the assets they have worked so hard to accumulate during their lifetime are protected at their death and distributed as they choose.

Our estate planning services include:

• Living and Testamentary Trusts
• Revocable and Irrevocable Trusts
• Family Limited Partnerships and Limited Liability Companies
• Special Needs and Disability Trusts
• Simple and Complex Will Drafting
• Business Succession Planning
• A complimentary checkup on your existing estate plan
• Asset Protection Planning
• Counsel on Wealth Preservation
• Durable General/Financial Powers of Attorney
• Durable Medical Powers of Attorney/Living Wills
• Health Care Proxies and Directives
• Charitable Planning
• Insurance Planning and Life Insurance Trusts

We also provide comprehensive legal advice to our clients in the areas of:

• Home and asset protection planning
• Medicaid and Disability planning
• Long term care planning

"How do I know if I need an Estate Plan?"

1.  You have no plan in place.

If you don't have a will or a trust, the state of Colorado has written a will for you.  Will this one size fits all plan that doesn't really fit anyone work for your family?  Will your estate be subject to litigation to decide who gets your property?

2.  You have minor children.

If anyone whom you wish to leave money is under the age of 21, they will be unable to inherit your money in Colorado without the Court appointing a Conservator to make decisions for the minor.  If this occurs, Court costs can eat up a lot of a child's inheritance.  There is also the issue that money the minor may need to live on will be tied up for a lengthy period of time.  And finally, the children will get the money at age 21, which can be the worst possible time to give a child a large sum of money.

3.  You have a taxable estate.

The amount you can inherit free of taxes is currently scheduled to increase gradually until 2010, when ultimately, if there is no change in the current law, there will be no estate tax.  Estate tax rates are roughly 45%.  They apply to both single and married individuals.

4.  You or a close family member are over age 45, terminally ill, have failing health or may become incapacitated.

If you or a close family member are older than age 45, or are terminally ill or incapacitated, you will not be able to make decisions on behalf of yourself or the family member unless you plan ahead.  If you have not dictated who can make decisions for you and when they can make the decisions for you, you are again doomed to the Court making that decision for you.

5.  Either you or your spouse have children from a previous marriage.

When spouses have children by a previous marriage, one spouse's children may get left out, or conflict may arise between stepspouse and the stepchildren, between the children or between the parent.

6.  You are self employed or own rental property.

If you are self employed or have rental property, keep in mind that there is significant time delay before a personal representative is appointed to care for rental property or your business in your absence.  Essentially, there will be a period of time where your rental property and/or business have to go on "auto pilot."

7.  You have a child who may not be responsible or is married to someone who may not be responsible.

Do you have inheritance protection for a child who may be subjected to a spendthrift spouse, divorce, lawsuits, creditors or bankruptcy?  Do you have a child who has a problem with shopping impulse control?  If so, there is a way that you can control and minimize this risk through proper planning.  Keep in mind that the average inheritance, regardless of size, is cmpletely spent within 18 months of receipt.

8.  You have an IRA or a 401(k) account.

Retirement accounts are almost never coordinated with an individual's estate plan, which could result in a tax problem.  It is important to put the planning in place to ensure that these plans can continue to grow tax deferred for future generations to come.

9.  You own joint tenancy property.

If one joint owner becomes mentally disabled, the property may become frozen.  Property may also pass to unintended persons at death.  Any person who ends up with the property after the passing of a joint owner may also find themselves inheriting a huge tax liability.  You may also be exposing your property interest to unintended creditors.

10.  You have a disabled child or are responsible for a dependent adult.

Disabled children and dependent adults require special planning to ensure that they are not going to lose any public assistance or benefits that they are currently receiving.

11.  You have only a simple will in place now.

Simple wills are not appropriate for everyone.  Used improperly, a simple will can lead to major problems, including subjecting someone to unnecessary estate tax.  Even a simple will may fail if you have not properly titled your property.  Joint ownership may cause a will to fail.

12.  You have an old estate plan in place or have a plan form another state.

The average estate plan has not been updated in 19.6 years.  Consider all the changes in your life and in the law that have occurred over that period of time.  Your plan should be reviewed and possibly updated every 3-5 years.  And it should be updated to reflect the laws of the state where you live NOW.  If you have moved from another state, there will most likely be numerous substantial changes that should probably be made to your plan.

At Chayet & Danzo, LLC, we have provided clients all over Colorado with customized estate planning service tailored to meet each individual's needs.  Additional estate planning information.