Without an estate plan, any Colorado resident’s final affairs could be left up to chance. Those affairs can relate to more than just how a person’s remaining property will be divided, and in fact, estate planning could help individuals plan for events that could occur while they are still living. As a result, if parties are on the fence about whether to create a plan, it may be useful to explore the possible benefits.
An estate plan can be useful to both the person creating that plan and his or her family. For the individual, it provides the opportunity to choose trusted people to be in charge of important matters. For example, a person can appoint an executor to handle the closing of the estate, a power of attorney agent to make important decisions on the person’s behalf while he or she is still living, and a guardian for any minor children. It also allows the person to explain the type of medical care he or she wants if an incapacitating or terminal situation arises.
When it comes to providing for the family, the following details could be useful:
- Making plans to avoid probate proceedings
- Naming loved ones as beneficiaries to payable-on-death accounts so they get assets sooner
- Handling possible taxes and legal fees ahead of time
- Allowing family to know important instructions so that they do not feel confused or uncertain about vital decisions
The reasons for estate planning are many, but it is often the individual needs of a person that fuels them to create a plan. While some Colorado residents may think that they are not old enough, do not have enough assets or do not have children and, therefore, do not need to plan, adults of any age, income level, and marital or parental status could benefit from a plan. To better understand how planning could be useful to any adult, discussing the process with experienced attorneys may help.