Some people in Colorado may be under the impression that only rich people need an estate plan. In fact, one survey reveals that only 42 percent of respondents had executed estate planning documents. This is significant, as many people in Colorado and across the United States have a general idea of what care they’d like at the end of their lives and who they want to inherit their assets. This is true even of young people or those with modest estates. Therefore, there are a number of important reasons that one may want to execute an estate plan.
For example, estate planning doesn’t just address what happens after you die. It can also address situations in which you are still alive but are incapacitated. A health care power of attorney and financial power of attorney can be executed stating who you want to make decisions on your behalf if you are unable to do so.
Executing a will or living trust is also important. Through these documents, a person can rest assured that their loved ones will inherit their estate per their wishes. These documents also make it clear to your loved ones what your wishes are, which could save time and money when it comes to the administration of your estate. A will or trust can also allow a person to make charitable contributions upon their death, if that is what they wish. Keep in mind that a trust must be funded with assets that are titled in the trust’s name for it to be effective.
These are only some aspects of estate planning that people in Colorado will want to consider. Estate planning can benefit people of any age and any financial means. Having a plan in place can ensure your wishes will be met both before and upon your death.