The holiday season is a great time to consider ensuring that your estate plan is in order. There is no better gift to give your loved ones than a clear and solid estate plan. Though no one would be excited at the prospect of opening up a present to see a copy of your will or trust, the benefits of a solid estate plan are far-reaching. It saves your loved ones a lot of stress, conflict, confusion, and litigation.
As probate litigators, we see what happens to families when a bad estate plan or no estate plan is in place. While we recommend that you come see us for a comprehensive review of your estate plan or to put together an estate plan, there are some things you can do in the meantime.
- Identify someone you can trust and who is organized. This person doesn’t need to be a family member, but should be someone who is familiar with your family’s dynamics. This person should be trustworthy and good with paperwork, or at least knows where to find resources to help (such as with us! Part of our practice includes advising on what to do after someone passes, not just probate or trust administration).
- Maintain your important documents in a location where your trusted someone knows about. The best place is in your home in a fireproof box, or we have even seen people store their papers in the freezer! These papers include information about your assets: bank accounts, financial accounts, 401(k)s, IRAs, stocks, certificates, deeds, titles, credit cards, life insurance, appraisals on personal property, and any other information about assets you own or debt you may have. There is no singular database for your loved ones to know where to look for your property, so you have to tell them what you have!
- Beneficiary designations. Many, if not all, financial accounts allow you to designate a beneficiary to be paid on death. This is often called “payable on death” or “transfer on death.” You can contact your institutions to ensure you have the right beneficiaries designated. One very important note: even if you say in your will that your assets are to be divided equally among your children (for example), if you designate only one person as your beneficiary on that account, your beneficiary has no obligation to divide or distribute that asset.
- Verify joint ownership of property. If you own real estate with a spouse or another person, verify that you own that property how you wish to own it. Colorado recognizes two ways of owning property: tenants in common, or joint tenancy with right of survivorship. Both ways of owning have their benefits and downsides, so make sure your ownership is a deliberate choice. We are happy to help advise and, if something needs to be changed, can help you make that adjustment.
- Consider a will or a trust. There is no such thing as a verbal will or a video will. Colorado simply does not recognize those as valid. You could have had a family meeting, recorded it, and expressed your wishes on how your property will be divided, and it will be nearly meaningless.
The best way to ensure that your wishes are followed is to talk to an estate planning attorney here at the Gasper Law Group. We are experienced and familiar with all of the litigation pitfalls in weak estate plans, and can make sure yours does exactly what you intend. Contact us today to schedule a consultation and take those steps toward securing your legacy, and avoiding the disastrous effects of a poorly done estate plan.