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Why Is Estate Planning Important?

Our Centennial Wills Lawyer Explains the Importance of Estate Planning

Life circumstances can change at any moment. You could suffer illness, injury or death with little or no warning. If anything, 2020 was a wake-up call that personal catastrophe could be just around the corner. An estate plan can be beneficial for you and your family members should the worst occur. If you were to suffer incapacitation or death without an estate plan in place, your assets may pass through Colorado Probate Court. The probate court would decide the outcome of your assets, such as which beneficiaries are to receive certain properties.

Estate planning is a great way to provide financial security for you and your family. Below, our Centennial wills lawyer explains the importance of estate planning.

Estate Planning Helps Avoid Colorado Probate Court

Estate planning protects your close family members, who may be beneficiaries to your estate. With estate planning, you can designate which beneficiaries are to receive which properties. For example, you could stipulate that your son is to receive your second home.

If you were to not have an estate plan in place, the probate court would divide your assets among your beneficiaries. For instance, assets in a trust do not pass through probate court.

Estate Planning Can Protect Your Assets

We strongly recommend reading the blog we recently wrote on asset protection strategies in Colorado. Estate planning is an excellent way to protect your assets from creditors and lawsuits.

You could create and put your assets into an irrevocable trust. The trust would have ownership of your assets, which could shield them from a judgment. Additionally, you could obtain liability insurance as an added layer of protection.

Estate Planning Can Eliminate Family Infighting

When someone with assets or money passes away without an estate, there might be a risk of family infighting. It depends on the family. With an estate plan in place, you make your wishes known to your family. Your estate plan stipulates who gets what instead of a probate court.

Estate Planning Can Protect Your Children and Grandchildren

Do you have children? Are you a single parent? Your estate plan could assign your children a guardian in the event you die or become incapacitated. Additionally, you can stipulate financial assistance for your child and can pass along assets.

Establishing guardianship can be extremely important during estate planning. If you were to pass away without naming a guardian for your child, the probate court may name a guardian.

Estate Planning Sets Your Last Wishes in Stone

You can work with an estate planning attorney on the following documents to make your last wishes known:

  • Durable power of attorney and living will. You can establish a durable power of attorney to have someone else make financial and medical decisions on your behalf. Additionally, a living will may establish your end-of-life healthcare decisions.
  • Will. Our wills lawyer can help you establish a will, which could name an executor to distribute your assets. You can also use a will to appoint a guardian to your children.
  • Trust. You can establish a trust to protect your assets and name who will receive your assets upon your passing.

Why Is Estate Planning Important? Contact Our Centennial Wills Lawyer to Find Out

Contact Skipton Law, LLC to learn more about estate planning options. We can walk you through your options during a consultation. To schedule a consultation with our estate planning attorney, call (720) 770-3880 or use the contact form on our site.

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