Personal property can introduce challenges to the process of estate planning. Such property could include valuable collectibles like antiques, art, coins, jewelry and more. One of the issues with personal property as part of an estate is that it can easily be forgotten, lost or taken by family members or others. Colorado residents with valuable collectibles may want to investigate options for tracking. There is software available for this.
Comprehensive estate plans in Colorado might include a will, powers of attorney, medical directive documents or other planning instruments. In many cases, having a revocable trust can lend benefits both to the person who makes it, called the grantor, and to his or her heirs. When the grantor of a trust dies, the trust can be written to live on indefinitely, carrying out the instructions of the grantor. Where the grantor is also the trustee, the trust should be written to provide a new trustee on the grantor's death.
Colorado residents who do not have any children or close relatives may feel that having an estate plan is not necessary. However, it is important for adults to have one, not only to specify what should happen to their assets when they die, but to also prepare for the unexpected while they are still alive.
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.