Estate planning isn’t just for the wealthy or elderly. Whether you’re starting a family, buying a home, or thinking about retirement, having the right legal documents in place can protect your wishes, your loved ones, and your assets. In Colorado, there are several core documents that every estate plan should include, no matter your age or income level.
At Lohf Shaiman Jacob, we help clients throughout Colorado develop comprehensive, customized estate plans that reflect their goals. Here’s a breakdown of the essential estate planning documents you should consider and what role each one plays.
1. Last Will and Testament
Your will is the foundation of any estate plan. It allows you to decide who receives your property after you pass away, and it lets you name someone to carry out your wishes (known as the personal representative or executor).
Key functions of a will in Colorado include:
- Designating who inherits your assets
- Naming guardians for minor children
- Appointing a personal representative to handle your estate
Without a valid will, your estate will be distributed according to Colorado’s intestacy laws, which may not reflect your preferences. That’s why even a basic will is better than no will at all.
2. Durable Financial Power of Attorney
A durable financial power of attorney gives someone you trust the authority to manage your finances if you become incapacitated. This document allows your designated agent to handle tasks like paying bills, managing investments, or handling real estate transactions on your behalf.
In Colorado, the “durable” designation means the power of attorney remains in effect even if you become mentally or physically unable to make decisions for yourself. Without this document, your family may have to go to court to seek guardianship just to access your accounts or make necessary financial decisions.
3. Medical Durable Power of Attorney
This document allows you to name a healthcare agent who can make medical decisions for you if you are unable to communicate or make decisions on your own. Your agent will work with doctors and other healthcare professionals to ensure your wishes are honored.
Unlike a living will, which outlines specific medical interventions, a medical durable power of attorney focuses on who has the authority to act for you when decisions need to be made quickly or when situations aren’t clearly spelled out in writing. Having someone who knows your preferences and values can be essential during a medical crisis.
4. Advance Directive (Living Will)
A living will is a written statement of your wishes regarding life-sustaining medical treatment. It’s particularly important if you become seriously ill or injured and are unable to express your wishes about whether to be placed on a ventilator, receive artificial nutrition or hydration, or continue with other life-prolonging measures.
In Colorado, this document can help your family avoid painful decisions by giving clear guidance about what you do or don’t want. It can also reduce the emotional burden on loved ones and minimize potential conflicts among family members.
5. HIPAA Release
Medical privacy laws prevent healthcare providers from sharing information with anyone who is not authorized. A HIPAA release allows your medical providers to communicate with your designated family members, healthcare agent, or attorney if necessary.
This simple document ensures that the right people have access to the medical information they need to help manage your care or make decisions on your behalf. Without it, even close family members could be left in the dark during critical situations.
6. Beneficiary Designations
Some of your assets, such as life insurance policies, retirement accounts, and certain bank accounts, may pass outside of your will. These assets transfer directly to the named beneficiary, which means keeping your designations current is essential.
If a former spouse or outdated beneficiary remains on an account, that person may still receive the asset, even if your will says otherwise. Reviewing and updating your beneficiary designations is a key part of maintaining a complete estate plan.
7. Revocable Living Trust (When Appropriate)
Not everyone needs a trust, but in some cases, it can be a powerful tool. A revocable living trust allows you to place assets under the control of a trustee, manage them during your lifetime, and transfer them to your beneficiaries without going through probate.
Trusts are often recommended for individuals who:
- Own property in more than one state
- Have privacy concerns
- Want to avoid probate for beneficiaries
- Have complex family situations or blended families
Trusts can also be structured to provide for minor children, loved ones with disabilities, or to manage charitable gifts over time. We help clients evaluate whether a trust makes sense as part of their plan.
Keeping Your Estate Plan Up to Date
Creating an estate plan isn’t a one-time event. Life changes, such as marriage, divorce, the birth of a child, a new business venture, or a major move, should trigger a review of your documents. We recommend revisiting your estate plan every few years to ensure everything still aligns with your goals and circumstances.
Outdated documents can cause confusion, disputes, and delays when they’re needed most. Regular updates help keep your plan current and effective.
Start Planning with a Legal Team You Can Trust
Estate planning isn’t about preparing for the worst; it’s about making sure your wishes are honored and your loved ones are protected. At Lohf Shaiman Jacobs, we’re here to guide you through the process and craft an estate plan that gives you clarity and peace of mind.
Contact our firm today to schedule a consultation. We’ll walk you through each step, explain your options, and help you create a plan that reflects your values and protects your future.
