On December 8, 2013

There are a number of reasons that Colorado residents and many others put off estate planning, such as thinking about their death or the possibility of no longer being able to make their own financial or medical choices. In fact, according to one expert, there are a number of multimillionaires that are 50 and do not even have a will. Estate planning is crucial because it can prevent someone’s family from dealing with financial upheaval, as well as ensuring that they have a responsible individual making decisions for them when they cannot.

While people need a will, individuals often forget that part of estate planning is selecting a trusted person, normally a family member, to handle financial and medical issues for them when they are not able to on their own. A durable power of attorney should be someone who is able to pay bills, manage investments and make decisions about how a person is cared for.

Trusts are another sometimes forgotten part of estate planning. A revocable living trust can help people avoid probate issues when they own property in different states. They provide more options for individuals than a will, enabling people to ensure that their assets are distributed in a manner of their choosing, even allowing money or property to be given to heirs over a period of time.

The requirements of an estate plan generally depend on the individual and their situation. While some people only need a basic will and power of attorney, others may benefit from trusts and related documents, and an estate planning attorney may be able to help individuals understand their options and to discuss how to best proceed.

Source: Market Watch, “5 estate-plan strategies for boomers“, Andrea Coombes, November 29, 2013

Categories: Estate Planning

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