Estate Planning

For many law firms the preparation of wills, powers of attorney, “living wills” and other documents is a sideline practice; an attorney with limited skills in this discipline will undertake preparation of these critical family documents more or less as a convenience to a standing client. Often the result is documents that may meet the client’s limited requirements, but which do not address complex family or financial issues, or important tax consequences.

Other firms may go to the opposite extreme, churning out hundreds of beautifully packaged wills and trusts a year, with little time spent getting to know the family and its unique circumstances.

At TCLG we recognize that quality estate planning cannot be practiced as a sideline, nor can it be sold as a bulk commodity. At worst, inadequately considered or poorly drawn instruments can have disastrous consequences. At best, the client may not be made aware of his choices, or may be sold complex instruments he doesn’t really need. No matter how big or small your estate, at TCLG your estate planning needs will receive individualized attention by experienced estate planning attorneys, at reasonable cost.

Overview of Common Estate Planning Instruments and Techniques

Wills:
Everyone should have a will. If you do not, the State of Colorado prepares one for you (through its statutes on intestacy). While your ideas and those of the state may coincide, they are just as apt not to. The state may direct that your hard-earned nest egg go to your second-cousin, once removed, whom you have never met and who is already a millionaire. You might prefer a gift to your favorite charity.

Making a will is particularly critical if you have no children, have any kind of a non-traditional family arrangement, or you and your spouse have a blended family.

In your will you not only may establish a general scheme for the passing of your property on death, you may designate guardianships and conservatorships for your minor children, you can establish trusts for your children and grandchildren, and you may utilize some key strategies for the minimization of estate taxes.

“Living” trusts:
There is much confusion today regarding the necessity or desirability of having a “living trust” as part of your estate plan. A living trust is simply a trust that you create during your lifetime. It is designed primarily to serve as a device for the avoidance of probate, as it allows your property to pass pursuant to the terms of the trust, rather than your will. Living trusts are very popular in states where probate is especially time consuming and expensive. In Colorado, we are fortunate to work under a relatively simplified probate system, negating much of the impetus behind living trusts. However, many attorneys will recommend these trusts for essentially all of their clients, whether or not they truly are warranted.

Living trusts are appropriate for many clients, particularly those who have or are facing disabilities, those who own property located in other states, and those with important privacy issues. TCLG will determine, based upon an individualized interview process, whether the additional expense of a living trust makes sense for you and your family, or whether a traditional will better suits your needs.

Powers of Attorney:
Unlike a will, a financial power of attorney designates an agent who can manage your property while you are living, should you become disabled or otherwise unable to manage your affairs. Similarly, a medical power of attorney designates an agent to make medical decisions for you if you are unable to do so. Both are key elements of a complete estate plan. TCLG routinely offers the preparation of these documents separately or in conjunction with the preparation of your will or trust.

Living Wills:
A “living will,” more properly known as an “advance medical directive,” is a person’s statement of intention as to how and whether to have life artificially extended when he or she is unconscious and terminally ill. Recent high-profile events have raised the public’s awareness of how devastating the process can be for the person’s family if those wishes have not been stated with clarity. We will explain Colorado law on this issue to you, and assist you to make your exact wishes known.

Tax-planning:
The state of the federal estate and gift tax has been in a period of flux for several years. The warring of political factions as to whether it should be eliminated altogether, stabilized, or increased, has rendered tax planning for the estate client something akin to firing at a moving target. For the year 2008 you can pass up to $2,000,000 of your estate tax free ($4,000,000 for a married couple). In 2010 the estate tax goes away entirely for a period of one year. However, in 2011, it returns to the year 2001 exemption levels of $1,000,000 per person.

Congress is poised to act to stabilize these laws. While TCLG’s crystal ball probably gets no better reception than anyone else’s, we do not anticipate that Congress will permanently eliminate the tax any time in the foreseeable future, and will instead compromise at a reasonable exemption level. Accordingly, we urge any client whose taxable estate, including life insurance, is currently in the $1,000,000 - $2,000,000 range, or who anticipates that it will exceed $2,000,000 in the next five years, to consult with us as to whether his or her estate planning should include the use of techniques to minimize tax.

TCLG offers a variety of sophisticated techniques to address tax-planning and other family needs. These include bypass or “A/B” type marital and family trusts, children’s trusts, charitable trusts, life insurance trusts, family partnerships and foundations.

Probate and Trust Administration:
TCLG’s representation of you will not end with the preparation of your estate planning documents. If probate or trust administration proceedings are required, we offer these services as well, eliminating the client’s need to hire new attorneys at a stressful time of life. We have experience with large and complex trusts and estates, but are also available and willing to assist you with small estate proceedings. We charge reasonable hourly fees for these services, rather than a percentage of the estate, so that you pay only for work that is actually done.