Estate planning is more than just making arrangements of how your loved ones in Colorado will inherit your assets after you pass away. It also includes provisions of what would happen to you if you ever can’t make decisions for yourself. Most people make the mistake of putting this off until they are old. However, it’s important to start creating estate plans as soon as you can because no one can really ever tell what will happen tomorrow.
The “right” time
Estate planning becomes necessary immediately after you become an adult and start accumulating assets. And it doesn’t matter if you have a business or real estate; even your monthly salary or funds from your side hustles are assets.
If unsure when to start, you could use the major life events to guide you. For instance, create plans for when you immediately open a savings account, get a life insurance policy, start earning an income, get married, have children or buy a property. As time goes by, you can keep updating your estate plans to accommodate new changes.
The important documents that you need include:
• Last will and testament
• Healthcare directive
• Financial power of attorney
• A trust
Consequences of failing to create an estate plan
If you die without an estate plan in Colorado, the state’s intestacy laws will determine how your assets will be distributed. This means that your belongings could go to people you never intended.
According to Colorado laws, the first person your assets will go to if you die without a will or other estate planning documents is your spouse and then your children. If you don’t have any surviving spouse or children, your assets will be distributed to your parents or other close relatives. And if you don’t have any close relatives, your belongings will go to the state.
Creating an estate plan is a very personal process, and there is no one-size-fits-all solution. The best time to start is now because it gives you peace of mind knowing that your loved ones are taken care of no matter what happens.