Why You Need an Estate Plan
Many people fail to realize the importance of an estate plan. Proper planning for the distribution of your assets can provide you and your family. Denver has many professionals who can help you explore the following reasons to have an estate plan.
Financial Security for Your Children
For many people, a will is adequate to convey their wishes concerning the distribution of their assets. For anyone with young children, a will is not sufficient. Colorado’s inheritance laws can be complicated, but a Denver Estate Attorney can recommend the best way to safeguard your children’s future and ensure that their financial needs are covered.
Guardians for Your Children
It is vital to plan for the management of your estate as soon as possible after becoming a parent. You don’t want an impersonal court to decide who raises your children if something happens to you. Thoughtfully selecting guardians for your children will provide you with peace of mind and serve their best interests.
Without an estate plan, the responsibility for settling your estate will go to the court for probate to ascertain your rightful heirs. Probate is a slow process and usually incurs hefty attorney fees. You can avoid this by creating an estate plan so that the bulk of your estate goes to where you intend.
Although Colorado does not collect estate taxes, it may be necessary for your heirs to pay federal taxes based on the value of your estate. It is best to consult with an accountant who specializes in inheritance tax so that you can have as much control as possible over the distribution of your money after you are gone.
You may want to reserve a portion of your estate to help fund a favorite charity. The best way to ensure that this happens is to make formal provisions for it because there is no guarantee that your heirs will have the same charitable leanings.
No one plans to get sick or become incapacitated, but it can happen to anyone. Estate planning will allow you to make decisions about your potential health care requirements before you become unable to do so. Through estate planning, you can assign your power-of-attorney for legal matters or medical decisions to someone you trust. You can also specify your end-of-life wishes.
It is a fallacy to believe that only the very wealthy require estate planning. Regardless of the size of your estate, it is best to consult an attorney before it is too late.