Far too many Colorado residents have never made a will or any other part of an estate plan at all. Even those who have thought about the future may find that their plan needs updating for many reasons, from changes in their family structure to changes in the law. One change that could affect people's plans for the future is a shift to digital assets and online management of those accounts.
Charitable trusts serve the dual function of being a valuable estate planning tool and a way to help those in need. At its core, a charitable trust is just a trust with a charitable purpose, but there are a few important differences that people need to consider before creating one. According to Colorado law, a charitable trust must benefit the community. This can include contributing to the relief of poverty, the advancement of education, the promotion of heath, and even governmental or municipal purposes.
Estate planning in Colorado is more than simply ensuring that assets will pass to the proper heirs. Anyone who has assets that they intend to leave to a loved one needs to have an estate plan in place. It can be helpful to think of the estate planning process as involving a checklist of items that should be addressed. Creating durable powers of attorney, ensuring beneficiaries are properly designated and establishing living trusts are all items that go on the checklist.
When a Colorado resident gets divorced, he or she is going to want to review any estate planning documents that were put into place before the marriage ended. Doing so can make sure that a person and his or her former spouse's family are eliminated from the plan if necessary. Depending on the types of documents that are in place, an individual may need to review more than just a will.
Some baby boomer parents in Colorado may be concerned about the estate planning failures of their children. In turn, their children may feel that they are simply struggling too much with debt and day-to-day issues to worry about it. One possible solution is for the parents to pay for their children's estate plan.
Colorado residents entering the estate planning process may wonder how they should choose an executor. An executor is the person who will carry out the instructions and wishes of the deceased, and he or she is usually chosen upon completion of a will. Deciding who will take on this important task can be difficult, but there are a few tips that might make it easier.
According to UBS Global Wealth Management, 56 percent of married women leave financial decisions to their spouses. Therefore, women in Colorado and throughout the country who get divorced may find managing their money to be a difficult task. When ending a marriage, it is important to take an objective look at both short and long-term financial needs. This may include reviewing a will and making sure that a spouse is no longer listed as a beneficiary.
Many people use an estate plan to set aside assets to fund an education for their descendants. Colorado residents can start planning for their loved ones' education by completing certain legal documents.
Charitable giving can be an important part of a comprehensive Colorado estate plan. In addition to establishing a person's legacy after they've passed away, philanthropy may convey tax benefits to the estate or heirs. Regardless of the specific reasons for charitable giving, gifts can usually be readily incorporated into the estate plan by an attorney.
One of the reasons Colorado residents draft wills is to prevent family conflicts over their wishes once they pass away from occurring. However, the mere presence of a will won't magically ensure that family squabbles won't arise. Careful planning is required to make sure that someone's estate plan is executed with minimal drama.