Colorado residents should take time to review their estate plans or have them reviewed by an attorney who practices estate planning law. Estate plans that are not periodically reviewed may contain outdated information and not be effective as people may think.
It is not unusual for retirees to have not reviewed their life insurance policies since they were first created. Many events that can occur during a person's life can make additions to the policies necessary. It is also important to ensure that the premiums for the policy are still being paid and that the policy has not lapsed due to missed payments.
Another mistake people will want to avoid with their estate plans is designating someone close to them, such as a family member or friend, as a trustee who does not understand what the role entails. Being a trustee can be a significant burden, and it is necessary to designate someone who will be able to manage the affairs of a deceased loved one properly. Some people may want to consider selecting a third party, such as a trust company or bank, to take on the role of trustee. They will have peace of mind that their affairs will be handled properly, and their family member or friend will not be placed in a difficult situation.
Estate plans should also be reviewed to ensure that they take into account the current exemptions for estate taxes. The estate tax exemption is currently more than five times what it was in 2008.
An estate planning attorney may guide clients through the process of creating a tailored estate plan for their financial situation and goals. A lawyer may recommend the appropriate legal documents, such as certain types of trusts and wills, to protect a client's assets that are meant for future generations.