Planning for the future is a goal in many Colorado homes. Individuals invest in retirement accounts and purchase life insurance policies. Family homes are taken care of and investment accounts are managed. However, one area that is often overlooked is the need for estate planning.
Estate planning is often more than simply creating a will. A will is a good place to start; however, many find that through careful planning and structure, the financial implications associated with their death is minimized. Items that transfer by means of a will generally are subject to probate. However, items that are owned through a trust are not.
Many find that a revocable trust affords a number of benefits. Assets can be owned in the trust and then pass to beneficiaries without probate. Throughout the individual’s lifetime, the individual can act as trustee and make any changes he or she deems appropriate.
Another benefit of a revocable trust is that it can be established in a manner where assets do not directly pass to a minor child until a specified time or action has occurred. For example, the child may only have limited access to the trust until he or she reaches a specified age, has graduated college, gotten married or some other specific directive. At this point, the child then has access to the trust account.
Estate planning is an essential part of planning for the future. Unfortunately, it is also the area that many Colorado residents tend to put off until another day. An experienced estate planning attorney can review the specifics of one’s estate and make recommendations regarding the best way to structure the overall plan.
Source: the almanac.net, “Five mistakes to avoid when planning your estate“, Casey Robinson, Dec. 26, 2017