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Call Us Today At (970) 353-4000 To Schedule A Free Initial Consultation!
The ultimate goal of a comprehensive estate plan should be the efficient distribution of one's estate with minimal family conflict. It aims to ensure a smooth transition of assets and responsibilities upon your demise.
In Colorado, like many other states, the legislature has designed a statutory will for those who die without having made their own will, an estate known as "intestate". Under this statutory scheme, provisions typically exist for a spouse and for children. However, this becomes complex in cases of multiple marriages and children from different relationships.
The legislative provisions are specific about the shares that various people receive. If you are uncomfortable with the legislative distribution or you do not want a judge overseeing the distribution of your estate, you should carefully consider your estate planning options. This may involve drafting a will or establishing a trust.
Regrettably, some individuals hesitate to arrange their estate planning documents. While everyone theoretically acknowledges their mortality, it does not imply a readiness to confront it. Some people avoid thinking about their eventual demise, and this aversion can lead them to neglect estate planning altogether.
Typically, people start considering estate planning once they have children and begin to accumulate assets. One of the first considerations is often the appointment of a guardian for their children. Drawing from my experience as a lawyer for students at the University of Northern Colorado, the process of determining a suitable guardian frequently involves engaging discussions and differing opinions, with candidates ranging from relatives to friends.
Alongside the selection of a guardian, a conservator – someone responsible for managing the child's financial assets – is usually appointed. This role often falls to a family member perceived to be a proficient financial manager. It's worth noting that guardianship and child-rearing responsibilities may not always be assigned to grandparents or older family members due to concerns about burdening them in their older years.
As wealth grows, the complexities of estate planning often evolve. Parents, now with older children and larger assets, grapple with how best to provide for their children's futures. Questions arise about whether to establish a trust or a will, whether to distribute inheritances in one lump sum or over time, and at what ages these distributions should occur.
The reasons behind these decisions vary. Some may wish to protect their child from potential financial challenges due to a bad marriage. Others may be concerned about their child's financial management skills. In such cases, it could be beneficial to allow a child, say, a teenager, to inherit a smaller sum of money at age 18. This strategy provides the child with some experience handling larger sums of money and serves as a learning experience.
Complex scenarios may arise that require careful thought, such as when there is a significant age gap among siblings. In these situations, deciding when to distribute inheritances can be difficult. For instance, one could consider withholding all distributions until the youngest child reaches a specific age, but this could significantly delay the inheritance for older siblings.
While there are no universally correct answers, each individual situation demands a right or wrong decision. Making these decisions is often a challenging process that requires careful thought and consideration. During subsequent meetings, playing devil's advocate can be useful to explore different perspectives and ensure all scenarios are thought through. This practice is a common part of the estate planning process. For more information on The Ultimate Goal Of Estate Planning In Colorado, an initial consultation is your next best step.
