In the next week or two, Coloradoetrust will become The Estate Planning Company. The Estate Planning Company will offer a simple Colorado Wills package, a Colorado Living Trust package, an Irrevocable Life Insurance Trust package and a Stand-alone IRA Trust package.
Several questions have arisen regarding the difference between Coloradoetrust and LegalZoom. The differences are significant!
a. Colorado Will;
b. Colorado Financial Power of Attorney;
c. Colorado Medical Power of Attorney;
d. Colorado Living Will;
e. Organ Donation Authorization; and
f. Burial Instructions.
Each document plays an important role in taking care of you should you need any assistance in the future, as well as conveying your intent upon your passing. By having a complete and comprehensive Colorado estate plan, your wishes are clearly stated, and thus, reduces the likelihood of you or your family going to Court.
Coloradoetrust also advocates using the benefits of a Colorado Living Trust. Please visit our link of Colorado Living Trust to learn more about the benefits of this powerful document.
5. Upon receipt of your estate plan, you are able to speak with the drafting attorney to address any question or concern you may have.
Coloradoetrust prides itself on having a state of the art estate plan, not just a “form,” and on delivering a compelling experience to you for the important task of giving you a secure feeling that your wishes and loved ones will be cared for if you are not around to do so.
Based on federal legislation known as the Economic Growth and Tax Relief Reconciliation Act (“EGTRRA”) that Congress enacted in 2001, the Colorado Estate Tax disappeared in 2005. The reason the Colorado Estate Tax vanished is due to how Colorado’s Estate Tax law was drafted. Colorado has what is known as the “pick up” tax. Prior to January 1, 2005, Colorado’s estate tax was determined by the amount of a federal tax credit allowed on a federal estate tax return for the amount of state estate taxes owed to Colorado. Stated another way, the amount of federal estate taxes actually owed to the IRS was reduced by the amount of estate tax owed to the state of Colorado. Since the EGTRRA legislation phased out that federal estate tax credit in 2005, Colorado’s state estate tax was effectively phased out. Based on the present federal tax law, EGTRRA will “sunset” (go away) at the end of 2010 and the pick up tax and thus Colorado’s Estate Tax will return, assuming Congress enacts no new estate tax legislation to address this “pick up” tax.
In a recent New York Times article titled “Estate Planning as a Family Conversation,” Deborah L. Jacobs discusses the different nuances that arise when involving family members in the conversation about one’s estate plan. Admittedly, such discussions can create both positives and negatives.
When all parties are on the same page, parents discussing their estate plan with their children can have some very positive results. However, it can easily go the other way when one heir receives more than his or her siblings as discussed in the article. Siblings can also get upset over who is designated as their parents’ Personal Representative, Trustee or as an Agent under their Financial and Medical Power of Attorney. All in all, it is this author’s belief that while opening up a discussion over an estate plan during one’s lifetime can create some frustration and even hostility, it can be better for parents to explain their decisions while they are alive in contrast to having heirs learn about it after their parents’ passing.
One topic the author did not mention is the importance of speaking with the individual or company who one designates in a fiduciary capacity like a Trustee, Guardian, Financial Power of Attorney agent and Medical Power of Attorney agent. When preparing one’s Colorado estate plan, I have always suggested people discuss with their designated agents or trustees of their potential role if they are needed. More importantly, one should confirm with their designated Guardian who will be taking care of their minor children whether they are up for the task.
To summarize, communication is important in estate planning. Each family’s circumstances are different, and thus, creates the possibility that everything may not need to be discussed. However, making designated fiduciaries aware of their potential role should be discussed.
In the recent Denver Post article Who’s Protecting the Unprotected, David Olinger illustrates the importance of having a complete estate plan in place should one lose their mental capacity. So many people think a Last Will and Testament is all they need. While even a complete estate plan cannot prevent the possibility of abuse, it does give one the opportunity to designate people they know and trust, in advance, to make the important decisions for them should the need arise. By having a Colorado Financial Power of Attorney and a Colorado Medical Power of Attorney in place, one can avoid the necessity and expense of a Conservatorship or Guardianship court proceeding. Each of our Colorado estate planning packages covers one’s needs if they cannot make the financial and medical decisions while they are alive. In addition, each package addresses how one’s assets are to be distributed upon their passing. Please visit our link Estate Plans & Pricing to see which estate plan is best suited for your needs.
In the February 21, 2010, Denver Post article “Who’s Protecting the Unprotected,” David Olinger reports truly sad but very real stories of what can happen when the courts cannot adequately oversee the affairs of an individual when a court has appointed a Guardian or Conservator to protect such person. The Colorado courts appear to be grossly underfunded to handle these tasks.
One of the reasons Coloradoetrust only offers a comprehensive Colorado estate planning package, that includes a Will, General (Financial) Power of Attorney, Medical Power of Attorney, Living Will and, depending on the package chosen, a Revocable Living Trust, is to avoid the necessity of relying on the courts to appoint somebody who it believes will take care of one’s important financial and medical needs when they are unable to do so for themselves. Instead, through any of our Colorado estate planning packages, we enable people to designate through their Colorado Living Trust, Colorado Power of Attorney and Colorado Medical Power of Attorney who they believe will take care of them in their time of need, before such need ever arises.
Many people think of estate planning as consisting of just a Will and who gets their assets. Actually, it ought to include much more than just a Will. A comprehensive estate plan involves planning for one’s incapacity through the use of a financial and medical power of attorney, planning that takes care of one’s minor children by designating guardians and conservator’s in one’s Will and planning for the transfer of one’s assets. A Revocable Living Trust can also be very beneficial for most people to avoid probate, prevent the need for a conservatorship proceeding for themselves or their children, limit or eliminate estate taxes in their own estates as well as their heirs’ estates and provide asset protection to one’s heirs. Accordingly, a Colorado Living Trust should be a part of most everyone’s Colorado estate planning.
With Coloradoetrust, every one of our estate plans includes the following documents:
We also offer two Colorado Revocable Living Trust packages that include each of these documents, plus a Revocable Living Trust.
Without a comprehensive Colorado estate plan, the state of Colorado will control the following –
One bonus…without a properly drafted Colorado Trust as part of your estate plan, the assets your heirs receive will likely be subject to their creditor claims.
Welcome to our website which is all about Colorado Estate Planning. We seek to provide information about the different estate planning documents like a Colorado Living Trust, Colorado Will, Colorado General Power of Attorney, Colorado Medical Power of Attorney and a Colorado Living Will. We believe everybody should have an estate plan. Further, we believe everybody could benefit from having one of our Colorado estate planning packages. Please do not hesitate contacting us should you have a question about how we can help you achieve your estate planning goals.
