Colorado Springs Estate Planning And Probate Blog

When people in Colorado think of estate planning, they may think of an elderly person dictating their last will and testament on their death bed. However, estate planning is critically important to complete early on in life. First, sadly, no one is guaranteed old age, so it is best to be prepared early. Second, estate planning encompasses aspects beyond simply deciding who should inherit your assets. It can address your medical and financial care should you become incapacitated during your lifetime. Estate planning is necessary for people of any age and of any wealth.

Of course, people want the estate planning process to run smoothly. They want to ensure their family understands and respects their wishes. And, through estate planning a person can avoid the complex probate process, which can cost a person's loved ones a lot in time and money.

Many Coloradans may wish to avoid having their estate go through probate upon their death. After all, the probate process takes time and costs money, thus diminishing the value of their estate. However, there are certain ways property can be passed on to your loved ones while bypassing the probate process.

For example, if property is owned by joint tenants with a right of survivorship, it will not go through probate when one tenant dies. Instead, it will be passed on entirely to the surviving tenant. This is because joint tenants have equal shares in the property at issue concurrently and under the same ownership documents.

When a person in Colorado Springs is executing an estate plan, they may fall into the trap of thinking they can just split everything equally between their heirs. While this can be relatively straightforward with regard to bank accounts and other intangible assets, it can be more difficult when it comes to personal property. How does one handle the division of family heirlooms, such as grandmother's wedding ring or a valuable painting? These tangible assets can be more complicated to address in an estate plan. This is because people may not know what these assets are currently worth, and these assets may have a lot of sentimental value for certain family members. That being said, it is just as important to include tangible assets in your estate plan as it is to include intangible assets.

First, it is important to ascertain the fair market value of each tangible asset included in your estate plan. Certified appraisers can assist with this. Once you understand the entire value of your estate and all its assets, it can be easier to determine how to divide it fairly.

When a person in Colorado dies, any assets that are not placed in a trust, do not have a designated beneficiary and are owned solely by the deceased must go through the probate process. When this happens, a personal representative will be assigned by the court. This person's role as a fiduciary is to wind down the deceased's affairs and distribute the assets of the estate to the deceased's heirs.

The personal representative is responsible for posting notice through the U.S. postal system or in an area newspaper of the deceased's passing, so that creditors are aware of the death. Any legitimate claims from creditors can then be made. The estate must be inventoried, valued, consolidated and liquidated, if necessary. Once the creditor claim period has ended, the personal representative can issue payments to creditors. Filing the necessary tax returns and paying the applicable taxes and fees are also duties of the personal representative. The remaining assets of the estate can then be distributed to the deceased's heirs.