Estate Planning Objectives in Colorado

Summary:  Estate planning includes more than just financial and distribution planning after your death.  It should include planning for your extended family's education and medical care.  It should also include asset protection for you and your family, and the reduction of expenses during any period of incapacity.

Education and Personal Development for the Entire Family, During Your Lifetime and Later

Helping your family members with their own educational and personal development is the biggest contribution that you can make to your family.

Another page on this site discusses estate planning for education more in-depth.

Plan for Your Incapacity

The most expensive part of anyone's life is the medical care and financial oversight required during any period of incapacity.

You should try to avoid a court-supervised guardianship (decision-making for your personal care) and a court-supervised conservatorship (decision-making over your assets and finances.)

There have been numerous examples in our local Denver media about the financial abuses by guardians and conservators.  This is especially true of bank trust departments.  Legal costs of $100,000 to $300,000 and more are not rare.  Many guardianships and conservatorships end up in family disputes.

The best tools to use to avoid the court-supervised proceedings during a period of incapacity are a Power of Attorney for Medical or Health Care, a Colorado Statutory Power of Attorney for Property, and a revocable living trust.

Planning to Transfer Property to Whom You Want, When You Want, and in the Way That You Want

You should plan to transfer property to your intended recipients based on your intentions, instead according to the laws of the state of Colorado.  (Colorado does not have a good estate plan for you.)

Reduce the Cost of Transferring Your Property by Avoiding Probate

Planning to avoid the delay and expense of probate is a good objective for people who are nearing the end of their natural life.  The use of a revocable living trust is the best way to avoid probate.

Maximize Your Income During Your Lifetime and Your Surviving Spouse's Lifetime

Income taxes can be eliminated or sharply reduced during your lifetime.

Reduce Income Tax and Estate Tax for Your Surviving Spouse and Other Family Members

You can reduce or eliminate capital gain income tax.

The use of an annuity is never recommended and is always a mistake.

Asset Protection Includes Protecting Your Assets from the Creditors of Your Family Members

Use disclaimer provisions in your will or trust so that family members have an incentive to disclaim property back to your estate or trust instead of being lost for taxes and other creditors.