On March 13, 2014

Colorado residents who are contemplating an estate plan may be interested in an article on CNBC that examines some key points of the process. Addressing these issues may help ease any burden on the family after the passing of a loved one.

Having a will can make the process of dealing with an estate much easier for the family of the deceased. Additionally, the existence of a valid will means that the state does not make any of the decisions regarding how the estate is apportioned. Some important issues should be covered in any estate planning scheme. First, the will should address who will be the guardian of any minor children should the parents pass away. This can help to avoid fighting over custody, however well-intentioned, between relatives who wish to care for the children.

Also important in estate planning is the creation of trusts. A trust is an estate planning vehicle that places assets in the hands of a trustee for the benefit of another. There are two main types, revocable and irrevocable. The main difference between them is that a person may still be able to make changes and updates to a revocable trust, whereas irrevocable trusts cannot be changed and have some tax and other advantages. Another crucial consideration to make is whether to have a heath care proxy. This entrusts another person to make health care decisions in case of incapacity.

Failure to properly address these and other estate planning concerns can lead to family disputes, adverse tax implications and other problems. An attorney who is experienced in these matters may be able to help prepare the proper estate planning documents to ease any burden that the family may have after a testator’s passing. This can help to preserve assets for those who are inheriting.

Source: CNBC, “Where there’s a will, there’s a way“, David Mendels, March 02, 2014

Categories: Estate Planning

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