Many people are under the impression that an estate plan is only beneficial to the ultra-wealthy. However, everyone can benefit from creating these legal documents.
If you have been wondering how an estate plan can work for your life, here are 5 reasons why you should write an estate plan today:
Ensure Your Family Is Provided For
Without an estate plan, such as a will or trust, the contents of your estate are subject to the laws of Colorado probate. This means your family will have no control over the distribution of your finances and property after you pass away.
With an estate plan, you decide exactly how you would like to distribute your assets once you’ve passed on. This includes bequeathing assets to certain people and ensuring your family has control over your finances.
Name a Legal Guardian for Minor Children
No one likes to think about what might happen to their children should they pass away, but without a plan your children could end up in the care of Child Protective Services. By naming a guardian in your will you are ensuring your children always receive the standard of care you are comfortable with.
Minimize Transfer Taxes
If you plan on transferring financial assets to family members or loved ones, an estate plan allows you to avoid paying certain taxes. For example, the IRS places limits on the amount of money you can transfer to one person without being taxed. A will allows you and your beneficiaries to outline wealth transfer strategies that would minimize taxes owed.
Plan for Children with Special Needs
Without a proper plan, any children you care for who have special needs may risk disqualification from receiving government-provided benefits. With a plan, you can create a supplemental needs trust to allow your children to remain eligible for government benefits while also receiving estate assets.
Plan for Your Medical Needs
If you are ever injured or fall ill to the point of mental and/or physical incapacitation, you’ll want to have a plan in place that details your wishes for medical treatment. For example, you can create instructions for how you would like to be cared for if you are either temporarily or permanently unable to make medical decisions on your own. In addition, you can name a trusted family member or friend as the executor of your medical needs and they will maintain control of these decisions until you can make them for yourself.
Helping Our Clients Create Solid Estate Plans
Whether you are looking to establish a will or an advanced medical directive, our estate planning lawyers can help. We are well-versed in all manners of estate law and can help you preserve your wishes.
Contact our firm online or call us at (303) 647-4245 for a case evaluation.