SCAROLA LAW
Boutique Estate Planning for all Stages
Frequently Asked Questions
Estate planning is an essential process that helps you manage your assets and make decisions about your health care and finances in the event of incapacity or death. In Colorado, as in other states, creating a comprehensive estate plan involves several key documents, including wills, trusts, powers of attorney, and advance medical directives. Understanding the intricacies of estate planning can be overwhelming, but having a clear plan in place can ensure that your wishes are carried out, reduce family disputes, and minimize the burden on loved ones.
This FAQ section aims to answer some of the most common questions about estate planning in Colorado. Whether you're just starting the process or looking to update an existing plan, these answers will provide helpful insights into the legal requirements, strategies, and considerations specific to Colorado residents.
What happens if you don't have an estate plan?
Without an estate plan, Colorado’s intestate succession laws will govern the management, distribution, and oversight of your assets and accounts. If you have children under 18, the Colorado courts will decide who becomes their guardian. Additionally, if you become incapacitated, the courts may appoint someone to manage your affairs through guardianship or conservatorship. The probate process, which varies by state, can be costly and time-consuming in Colorado. When decisions about a person’s estate or family are left in the hands of impersonal legal processes, it can create significant disruption, often leading to family conflicts or strained relationships.
I’ve been named executor in a Will—What are my responsibilities?
As the executor of an estate, you have several important responsibilities to manage. These include: locating and inventorying all of the deceased’s assets which can include both physical property (land, homes, cabins, jewelry, collections, boats, cars, and other vehicles) as well as financial assets (investments, bank accounts, retirement accounts such as 401(k)s, life insurance policies, pensions, etc.); notifying the beneficiaries and heirs named in the will or under intestate succession that the person has passed away; publishing a notice in a local newspaper (in some cases) to alert creditors to the death of the individual, providing them an opportunity to file claims against the estate; filing court documents and tax returns; paying outstanding debts; and notifying of insurance, credit card and utility companies of the deceased's passing.
What is a will?
A Will provides all of the essential and necessary details of who will inherit your property, including when and how they, will inherit. It also names your choice of an executor (sometimes called a personal representative), who will be put in charge of settling your final affairs and guiding your estate through the probate process. Wills are flexible and can be updated, amended, or revoked at any time you choose.
What is a trust?
A trust is a legal entity designed to hold and manage assets. You appoint a trustee (or trustees) to oversee the trust, and you can even serve as the trustee of your own trust. There are various types of trusts, some of which are revocable and others that are not. Special types of trusts, such as a special needs trust or a trust for minor children, can be established to provide ongoing financial support and management for dependents after your death. Revocable trusts can be modified or revoked during your lifetime, offering flexibility. Trusts can also be used to protect assets from taxes and creditors, and to help your estate avoid the probate process.
What Is a General Durable Power of Attorney and a Medical Durable Power of Attorney (or Health Care Proxy)?
A General Durable Power of Attorney (POA) is a document that authorizes someone to make financial decisions on your behalf if you become unable to manage your own affairs. This person can be a spouse, adult child, friend, or even someone unrelated to you. In contrast, a Medical Durable Power of Attorney, also known as a Health Care Proxy, designates an individual to make medical decisions for you if you are unable to communicate your wishes due to illness or injury.
What should I expect in terms of attorney fees?
We understand that cost is an important consideration. We offer flat fees for our estate planning services, so you’ll know the total cost upfront with no surprises. Our fees are competitive with other estate attorneys in the area. During the estate planning meeting, we will provide a personalized fee quote.