Wills, Trusts, and Lawyers: A Complete Estate Planning Guide

Estate planning is critical for those who wish to protect their families and assets, and make sure post-death or incapacity that their wishes are honored. A lot of people believe that they don’t need estate planning because they are not rich, but the reality is that nearly everyone can benefit from creating an estate plan. This guide delves into the building blocks of estate planning – wills and trusts – and why it’s important to have the right estate attorney on your side. If you reside in Colorado, speaking to a seasoned estate attorney Denver residents recommend may allow you to form a legally binding personal Colorado estate plan.

The Basics of Estate Planning

There’s much more to estate planning than drafting a will. The process might range from planning for the management and transfer of your property, to appointing people who can tend to your affairs if you are no longer able to do so, to making health care decisions for the future. Properly organized estate planning can cut taxes and red tape, while protecting against infighting among family members.

Most estate plans are built around a will. It applies to what will happen to your property when you die. It can also consist of directives about who should care for minor children and how you would like your body disposed of. If you pass away without a properly executed will, the state will determine how your estate is distributed, regardless of what your wishes might have been. In Colorado, such default laws may have unintended consequences, particularly for blended families or unmarried partners. That’s why a well-crafted will is so important.

The Role of an Executor

When you create a will, you name an executor to handle your estate. This is the person who will make sure that your debts get paid and your property is distributed according to the document. Given the responsibility that comes with being the executor, it’s critical that you select someone you trust to manage your estate. A will also lets you specify who you want to receive your property, whether it be a house, bank account, or sentimental items. In the absence of such instructions, the state distributes assets according to inflexible formulas that don’t reflect personal relationships or dynamics within families.

The Importance of a Trust

Even though a will is significant, it’s rarely the only piece of a full estate plan. Trusts are also potent instruments for controlling and passing assets. A trust is an arrangement in which one person, the trustee, holds and manages property for the benefit of another, the beneficiary. Trusts can be established during your life or created after you die, through a will.

Trusts have several benefits. Among these are the ability to bypass probate, the court-supervised procedure through which a deceased person’s estate is settled, and to leave money to a beneficiary while protecting the asset from his or her creditors. Putting assets in a trust allows a faster and more private transfer to your beneficiaries. Trusts can also provide tax advantages, shield assets from creditors, and continue to manage the money for minors or individuals with special needs.

There are a number of kinds of trusts to consider, such as revocable living trusts, which let you maintain control over your assets while you’re alive, and irrevocable trusts, which can provide more protection and potential tax benefits but give you less control. Each kind of trust has a specific purpose, and the one you choose will depend on your goals and financial circumstances. This is where the expertise of an experienced estate lawyer is a godsend. They can help you understand your options and set up a trust that works best for you.

The Advantages of Hiring an Estate Lawyer

An estate lawyer is not just involved in the process of developing a will or trust, but also helps you in all aspects of estate planning. They can assist with the preparation of documents like the power of attorney, the legal form that designates someone to transfer financial matters on your behalf if you are incapacitated, and the health care directive, which describes your wishes to the doctor. Just as important as a will, these documents ensure your wishes are respected while you’re alive if you are unable to communicate them yourself.

A second advantage to engaging an experienced estate attorney is the peace of mind in knowing your documents are compliant with today’s laws. Estate laws are different in all states, and the laws may not be the same tomorrow. For example, a Denver-area estate lawyer knows all the Colorado-specific legal requirements. They can also help you revise your estate plan as your life changes – getting married, divorced, having children, or acquiring new assets.

Estate planning is not only about preparing to pass away, but it’s about taking charge of your legacy, safeguarding those you love, and making a plan so your wishes are honored. Wills and trusts are great structures, but are only effective if used and executed properly. Don’t wait for a crisis to start planning your future. Start now to give yourself and your family the peace of mind you deserve.