Colorado residents may already be aware that estate planning can be used to make sure that assets are managed according to specific wishes. If individuals want to ensure that they leave behind a certain type of legacy, however, they should understand the principle behind legacy planning.
There are many reasons why a person in Colorado would not want to go through the probate process. Regardless of how large or small an estate is, there may be ways to help a person accomplish that goal. For instance, using a transferable on death (TOD) deed could turn homes into assets that don't have to go through probate.
With today's higher divorce rate, and the decline in so-called nuclear families, that has changed. It is completely common for people with children from previous marriages to marry partners who also have children from their previous marriages.
The estate plans of people in Colorado often include spouses as beneficiaries. A divorce filing, however, triggers the need for people to review the terms of their estate plans in light of the ending relationship. Sudden death or incapacity could cause an ex-spouse to receive distributions or even be in charge of someone's medical decisions.
Decanting a trust refers to creating a second trust to revise the terms of an irrevocable trust. Under the original terms of an irrevocable trust, the assets are moved completely out of the control of the grantor and the trust cannot be altered or canceled. However, 25 states now allow decanting of an irrevocable trust, and Colorado is one of them.