As we have discussed here on this blog, estate planning is a very important process that should begin early in life. The longer you wait to put your estate plan together, the more risk you assume and the more difficult it could be to manage and organize all of the assets you want involved in your estate plan. However, once you put your estate plan together, there is one very important question you will have to answer: who will be your heirs?
While the following story doesn't originate from Denver, Colorado, it does highlight some important aspects of estate planning and life care planning. A woman in New York says that her late husband's rent-controlled apartment contains a sizable inheritance, worth somewhere in the range of $18 million. But the managing company that handles the building changed the locks on the apartment because the late husband apparently owed back rent -- or possibly rent racked up since his death. The article isn't exactly clear on that.
Drawing up your estate plan is a major step, and it requires a lot of thought. You need to be thorough yet deliberate when you write up the numerous documents that make up your ultimate estate plan. Despite this incredibly important life decision, there are many people out there who forget to include certain aspects in their estate plan, or they make outright mistakes that cost their family when the estate plan is executed.
There are many things that must be considered when planning a final estate including all financial aspects, property distribution and documenting final wishes. One thing that should not be ignored is documenting end-of-life wishes for medical care. Setting advance medical directives may prove to be valuable for Colorado residents who would like to establish final wishes for what kind of medical care is to be given and what, if any, life-saving efforts are to be taken in the event of incapacity.
Imagine that you either inherit or create a business prior to getting married. You take this business to new or incredible heights, and the asset becomes very valuable. Some years later, you plan to get married to the love of your life. The two of you agree to a prenuptial agreement, and one of the provisions included in this document is that your business is separate from your spouse in case of a divorce.
As most fans of the Denver Nuggets are aware, the Donald Sterling debacle is finally over. The former owner of the Los Angeles Clippers was booted from the NBA and fined $2.5 million dollars. Sterling made some incredibly insensitive remarks to earn his banishment -- but seemed to defy his reputation as courtroom frequenter when he gave his estranged wife, Shelly, clearance to sell the team. The Clippers were owned by the Sterling Family Trust.
For parents it is important to have a will. This document becomes the foundation of a solid estate plan. A will lists who you want to take your property and includes the names of guardians for minor children or a disabled adult child.