You have a close-knit family, but you may have heard the adage that says the worst sometimes comes out in people who are grieving. This can, unfortunately, be true. It may not be unusual for some Colorado families to fight over their parents’ belongings immediately after the funeral, instead of letting the executor of the will handle it.
Many people in Colorado have important gaps or errors in their estate planning that can be rectified through review and the creation of additional important documents. As people age, it becomes increasingly critical to not only develop a plan for the future of assets but also to put in place a framework to address key concerns about healthcare, medical treatment and finances in case of incapacity. Around 40 percent of all older Americans do not have documents in place that can help to protect them and their future in the case of a serious illness or death.
Estate plans are meant to help provide direction for when the creator passes away. It lets the loved ones who are left behind know who is getting what assets. In some cases, the estate plan will make the transfer of assets easier. There are some common mistakes that people make with their estate plans that can cause the plan to not be effective. Colorado residents should make sure they aren't making these mistakes.
Some people in Florida might wonder whether they should include their wishes for funeral arrangements in a will. The advantage of putting this in a will is that it can be enforced. The disadvantage is that reading over the will is generally not the first step people take following the death of a loved one. Once the family finds and reviews the will, the funeral may have already taken place.
Colorado residents thinking about the future of their assets and their family may be moved to create trusts to protect their property. By making use of a trust structure, individuals can plan for taxes, optimize their estate plans and provide specific mechanisms for the disbursement of their legacy in the years to come. However, trusts also require careful management and oversight, and one common mistake that people make when creating a trust is to turn to an inexperienced friend or family member to administer it.
The information age has provided Colorado residents with new ways to stay in touch with one another and manage their financial affairs, but tracking down passwords and other login data for myriad banking, social media and email accounts can be an arduous and frustrating experience for friends or family members when a loved one has passed away. Financial planners and estate planning attorneys often recommend keeping track of bank and retirement accounts on what are known as estate document locators, and a number of technology-driven solutions have been released that can help to ensure that this information is complete and accurate.