It is not necessary for one to be rich in order to benefit from estate planning in Colorado. Estate planning is not as complicated as many people perceive it to be either. Taking the time to ensure all assets and valuables are distributed according to one’s final wishes is one of the smartest moves anyone can make.
1. Make funeral arrangements
According to NerdWallet, people can save their loved ones the hassle of trying to cover their funeral expenses by drafting their funeral plans well in advance. Many families struggle financially to pay for these events. Some families end up in turmoil because they cannot come to agreements about what should be done to honor the deceased. In addition to drafting these plans ahead of time, a copy of them should be kept somewhere safe where family and loved ones can find them when it is time.
2. Provide for basic needs
Many people think about what they want to happen when they die when they are creating their estate plans, but not very many of them think about how their lives will be right before they pass away. Sometimes they may need more care and support than their families can provide for them, such as medical care, assisted living or hospice care. A life insurance policy may provide them with a large enough cushion to provide for their basic end-of-life care, states Kiplinger.
3. Designate beneficiaries
Family conflict often ensues once a person dies. To prevent unnecessary conflicts and to avoid probate court, the testator should leave behind detailed instructions identifying who is to inherit from their estate and what they are to inherit.
4. Do not forget estate tax
People who have large estates often have larger probate expenses. To help offset them, they should consider gifting property and assets while they are alive. This can help to keep those assets from having to go through probate. People who are considering this option should work with an estate tax planning professional. There are certain laws, rules and stipulations that must be followed in order for them to benefit from it. This strategy works best when a person gives away assets within a certain time period before they die.
Estate planning can be very beneficial everyone. It can also be made simple with the right approach and professional assistance.