Estate Planning Colorado

The term estate planning brings to mind, for many people, the rich and famous deciding to whom they will dole out their vast fortunes. While wealthy individuals certainly do need to consider the recipients of their inheritance, estate planning is something for everyone to do. Whether you are a young family with children at home or a retiree living out your golden years, you need to have a written document showing who gets what when you pass away.

There are several reasons to have a will in place as soon as possible. First, your friends and family members will know exactly what they will be inheriting, which cuts down tremendously on fights and bickering after you are gone. You may not think that you have many important or valuable items, but many times those whom you leave behind may find themselves fighting over precious family mementos. While they may not have much monetary value, they have a tremendous amount of sentimental value in the eyes of those who love you.

If you die and do not have a will, your heirs will be required to hire lawyers and pay significant amounts of money as their inheritance is in probate. Having a will shows exactly what you want done, saving this hassle. Also, if you have minor children at home, having a will ensures that they do not become wards of the state. You can state exactly whom you want to take care of them.

Estate planning involves several different things. One of the most obvious parts of estate planning is your will. Wills show what you want done with your property after you pass away. If you do not have a will, the state will decide what to do with any inheritance that you leave behind, and they likely will not decide in the way in which you would have preferred.

Wills are not complicated documents, but it is essential that you file a will according to the laws in your state. Each state is different, and if a law is not followed when you file your will, your potential heirs could contest it, and it could become null and void. A lawyer can help you plan a will that follows the laws in your state.

Wills can be amended any time you wish. You should amend your will if your family situation changes. If you add children to the family or separate from your spouse, your will likely will need to be updated.

One aspect of estate planning that you may not think of is assigning power of attorney. While this does not directly affect your inheritance or property, it does directly affect you. In general, the person to whom you assign power of attorney will take over your financial situation if you become unable to do so. Whether you are incapacitated due to age or an illness, your agent will manage your finances for you.

Choosing the person to name as your agent is important and requires some thought. While you may want to name a close friend or family member, it is crucial to find someone who is good with handling finances. You also want to find someone to name as power of attorney whom you feel you can trust. Unless you are in a situation currently that requires a power of attorney, you will probably want to set up your power of attorney as one that only goes into effect if you are in a situation where you cannot handle your own finances.

If you do not have an agent named in your will and you are in a situation where you need one, the courts will have to appoint your guardian. This means that someone you do not trust could end up in the position of governing your finances. Also, this process will cost your family quite a bit of money. It is far better to name your agent in your will as part of the overall estate planning process.