Planning for incapacity is easy to put off, but important to address. If you lose the ability to decide medical care issues on your own because of illness, accident or age, having the appropriate legal documents in place allows someone you trust to make those decisions on your behalf. If you don’t make medical care arrangements in advance, then estranged family members, doctors, or judges may have to make the decisions for you.
Real estate is frequently the most valuable part of an estate. It is important to know how your property is titled when estate planning to determine how to ensure that the property transfers to your desired beneficiaries. Property is titled in many different ways reflecting various types of ownership. Consequently, property can be titled in such a way as to avoid probate.
Estate planning is for all members of the family – even the furry ones. Don’t forget your pets in estate planning. One way to take care of pets in estate planning is through a pet trust. Although often an overlooked part of an estate plan, ensuring that your pet will be taken care of after you die is important. Sixty-eight percent of American households have pets. Under the law, however, a pet is considered property. So in a worst case scenario, the lack of a pet trust could lead to the unintended placement of your beloved pet into a shelter. You can create a testamentary trust that is
Colorado falls under the Uniform Probate Code which makes Colorado law consistent with that of some other states. Probate refers to “proof.” In the context of probate, proof relates to the form and content of wills. In a practical sense, probate has a broader application and applies to the activities involved in carrying out the wishes of a Testator or Testatrix (maker of a will) as set forth in a will, or the activities that occur to administer an estate in cases where there is no will.
It is important to have a plan to protect your heirs should something happen to you. Although putting together an estate plan may be something easily put on the backburner, having a plan will benefit you and your heirs.You should start with a will or trust document so that you choose to whom your assets will be distributed. If you die without a will, then the state decides how your assets will be distributed and that distribution may differ from what you would have decided. In addition to a will, you can provide detailed information in a Memorandum For Distribution of Tangible Personal
Property transfers to family members can have tax consequences. Business owners should have estate plans, but many owners are unaware of the tax implications associated with recapitalizing their business entities to help family members.Business owners probably already know that sales of stock, for example, have tax consequences. Selling stock for an amount for more than was paid for it (“in excess of basis”), results in a taxable gain. However, they may not realize that there are other transfers of property that also result in taxable transactions.