Plain Talk About Estate Planning

Everyone should have a will (or trust), a financial power of attorney, and a medical power of attorney. They should in place before they are needed, and family or close friends should know where they are. Once these documents are in place, you don't have to think about it again unless your circumstances change a lot. Some people call this “Peace of Mind.” I consider it simply a responsible and caring thing to do both for yourself and for those who care for you.

In most situations, Colorado's probate system is private, straightforward and inexpensive. Unless you have millions of dollars you don't need a living trust or other sophisticated tax avoidance device. You simply need an effective will and trustworthy persons to follow your instructions. Some people use a how-to book or web-based systems to create their wills, other people prefer to hire a lawyer.

There are three phases to doing an estate plan.

Planning is the first phase: figuring out what you have, who you want it to go to, and who is going to do the various jobs assigned. This phase can take as little as a few hours depending on how much stuff you have, and how many people you wanted to go to this phase.

The second phase is getting agreement: asking the people that you would like to do the jobs if they will, and giving any specialized instructions.

The third phase is getting it down on paper and making sure the documents can be found when needed.

A Will gives instructions about where you want your stuff to go after you die. If you have minor children, it will also provide for who looks after your kids and who looks after your kids stuff if you die. The person that follows the instructions in the will is called the Personal Representative. That person should be trustworthy and able to follow instructions. The person or people that look after your kids is called the Guardian, and should have the qualities and ability to look after your kids as you would.. The person that looks after your kids’ stuff is either called a Conservator or a Trustee, and should be competent and responsible with money. Sometimes people figure that a family member should do the job and that only one person should do all jobs, but sometimes somebody who is good with kids is not so good with money or vice versa.

A financial power of attorney (often called General Durable Power Of Attorney) authorizes someone (your financial agent) to act on your behalf regarding financial matters in the event you are unable to. Your financial agent should be trustworthy, good with money, and willing to look out for your best interest. I think a financial power of attorney is important enough that I have made a Statutory Power Of Attorney available at no charge on this website.

A medical power of attorney (generally called a Medical Durable Power Of Attorney) authorizes your medical agent to make healthcare decisions on your behalf in the event you are unable to do so. Your medical agent should understand your desires regarding quality of life and what degree of care you want in the event you are unable to make those decisions for yourself.

If you want some help with your estate plan, call me, 303.981.1433 or send me an email.