Estate Planning Checklist for Colorado Residents: Denver Estate Planning Attorney Explains

ByBNW Staff

When it comes to Estate Planning, most Colorado residents put it off until a major event like a health scare, a new grandchild, or when they hear about a friend’s messy probate experience. Truth be told, a proper estate plan doesn’t have to be complicated. However, it does need to adhere to Colorado law associated with wills, trust, property titles, and other relevant avenues. Whether you’re starting from the beginning or updating your documents after some time, Whitcomb Selensky PC is here to help. As your trust and estate attorneys in Colorado, we want to guide you through a checklist of what to expect with estate planning in Colorado.

Why Estate Planning Matters Under Colorado Law

Estate planning is the process you go through to arrange the management and distribution of your assets in the event of your death or incapacity. This is an important process for a number of reasons. They include: 

  • Control and Clarity – You can guarantee that your hard-earned assets are protected and distributed according to your wishes. 
  • Peace of Mind – You can rest easy knowing that you’re not leaving behind a burden that your family and friends have to deal with during a turbulent and emotionally charged time. 
  • Tax efficiency – With proper structuring, you can significantly reduce your tax profile. This means that you have more money and assets to pass on to your heirs.

Your Colorado Estate Planning Checklist 

When it comes to your checklist for estate planning in Colorado, there are several important steps you need to take. They include the following:

  • Compile a list of all your assets. These can include bank accounts, investment portfolios, vehicles, and real estate. 
  • Check all your Payable-on-Death (POD) and Transfer-on-Death (TOD) accounts and update them if necessary.
  • Check on your life insurance and retirement accounts (e.g., 401K) and update them if necessary.
  • Create important documents such as your last will and testament, a financial power of attorney, a medical power of attorney, a HIPAA release, and a living will. 
  • Appoint fiduciaries (i.e., guardians) to act on behalf of any minor children.
  • Appoint a trusted person or corporate entity as your trustees and executors. 
  • Make arrangements to ensure the safety and security of all your essential documents.
  • Consult an estate planning attorney in Colorado and other experts to make sure your estate plan is legally and financially bulletproof.

As we’ve pointed out, legal and medical documents have an important role to play in estate planning. As such, here are the core documents needed for estate planning. 

Last will and testament 

This document is the foundation of your estate plan. Through your last will and testament, you instruct an executor how to manage your estate and how your assets should be distributed among the beneficiaries.

If a will is not executed at the time of death, Colorado’s intestate laws will apply. As such, there is a risk that certain individuals can benefit based on familial relationships, even if you did not want them to receive anything. 

Financial Power of Attorney

The Power of Attorney is a document that appoints a person or organization to make decisions on your behalf. In terms of estate planning, the two most common POAs are financial and medical. A financial POA is when you appoint someone to handle your financial affairs when you are unable to do so yourself. This can include things like paying the bills and managing your property. 

Advance Directives (Medical)

Advance directives are a set of documents that give instructions on health decisions when you are incapacitated. Some of the core advance directives include a living will, medical POA, and the optional Medical Orders for Scope of Treatment (MOST) and CPR directives. Collectively, these documents specify who is authorized to make medical decisions on your behalf and to what extent medical treatment should be provided.

HIPAA Release

This document explicitly names the individuals who medical providers are legally allowed to share your sensitive medical information with.

Common Mistakes Coloradans Make in Estate Planning 

With estate planning, there are some mistakes that can significantly impact the estate planning process. Some of these common mistakes include: 

  • Relying on generic DIY templates
  • Failing to retitle and align assets
  • Missing out on incapacity planning
  • Failing to designate guardians for minor children
  • Forgetting to update the estate plan after major life changes 
  • Keeping documents hidden and inaccessible.

Conclusion

Estate planning isn’t a one-and-done type of thing. It’s a constantly evolving process that needs to be revisited with every major life change. When done right, you can make sure that your family is taken care of when you die or are incapacitated.

If you’re looking for sound legal guidance when planning your estate, Whitcomb Selensky PC is here to help. As your Denver estate planning lawyer, we help Colorado residents create comprehensive estate plans that are legally and financially bullet-proof. Contact us today and schedule your consultation.