After you pass away, there are a lot of formalities and things to take care of to resolve the problem of what happens to your assets. Known as estate planning, this process can be a little overwhelming to those who are not familiar with the steps needed to ensure that property goes where they desire after their death. G. Deffenbaugh is an estate planning and probate lawyer who can discuss your estate planning needs and help you put the process in place for when the unthinkable occurs. But what are the major elements in estate planning? Let’s take a closer look at eight areas of estate planning that can be arranged prior to your death.
· Will and revocable trust. A will and a revocable trust are the most common planning vehicles used in estate planning. A will lays out the distribution of assets and appoints a personal representative to ensure these wishes are followed. A revocable trust can be set up as well to avoid probate court when the distribution of assets occurs after death.
· Power of attorney. Power of attorney planning, or POA, is a legal document giving someone you know and love the ability to make decisions, including in the event of incapacitation. There are two types, including durable power of attorney and durable medical power of attorney.
· Beneficiary designations. Most of your monetary accounts, including retirement accounts or life insurance policies, can be disbursed to those you care about with beneficiary designations. It is critical that this documentation is kept current as these beneficiary designations override a written will.
· Living wills. Living wills are documentation outlining what should be done if you are in need of medical treatment and are unable to make decisions on your own behalf regarding life-sustaining care. This includes situations where you may need feeding tubes or mechanical interventions to keep you alive.
· Estate taxes. When estate planning, some people need to consider potential estate tax liabilities, including federal and state estate taxes. Colorado does not have a state estate tax as of 2024. With proper estate planning, you can minimize the tax burden for those left behind, ensuring a less stressful management of your assets and their distribution.
· Guardianship designations. Any of your dependents, including children and those with special needs, will need continued care after you pass. Lining up guardianship with friends or family can ensure the continuity of care for your loved ones. The nomination of a guardian is usually done in a written will.
· Charitable giving. If you desire to have any of your assets donated to charities, you can make charitable gifts in your will or revocable trust to support the causes that mean the most to you. In addition, you can add charities to the beneficiary designation to some or all of your tax-deferred retirement accounts, you can set up an account with a Donor Advised Fund, or you can establish a Charitable Remainder Trust. There are many ways to benefit charities in a comprehensive estate plan.
· Business succession planning. Business owners have another piece of the puzzle they have to arrange upon their death, including buy-sell agreements to determine the future of ownership interests and key person insurance that covers your business and its financial support upon the death or disability of a vital employer.
Schedule time to talk to G. Deffenbaugh about your family’s estate planning needs
If you reside in or around the area of Centennial and are interested in working with an experienced estate planning and probate lawyer serving the state of Colorado, please call (303) 542-7280 or email g@cotruststaxes.com to discuss the services that G. Deffenbaugh provides. His office is located at 7173 South Havana Street, Suite #600-281, and he is here to assist you in navigating estate planning and probate.