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28 Feb, 2024
Understanding Probate in Colorado: The Guide to Timelines, Steps, and What to Expect
By Dan McKenzie 04 Feb, 2024
One of the most common questions we receive is whether or not to share the details of an estate plan with adult children. This decision is personal and can have far-reaching implications for the individual and their family. The Benefits of Sharing Your Estate Plan Sharing your estate plan with your adult children can be beneficial. Doing so allows the family to discuss the plan's details, including what needs to be done in the event of incapacity or death. This open communication can help set expectations and facilitate a smooth estate administration process. A discrepancy between the plan and what the family expected is one of the most significant sources of tension and difficulty during the estate administration. It can be helpful to identify and resolve the discrepancy while the person who can change the plan can either still do so or explain why they designed the plan the way they did. Our firm generally recommends communication with fiduciaries and beneficiaries about the plan. However, communication does not necessarily mean sharing the complete draft of the estate plan. The Risks of Sharing Your Estate Plan While there are benefits to sharing your estate plan, there are also potential drawbacks. One of the main concerns is that sharing the estate plan can create difficulties if the plan is changed after it has been shared. This can be particularly problematic if any of the beneficiaries of a previous plan will receive less from the new plan. Another risk is the possibility of inconsistent plan drafts circulating after death. This can lead to confusion and potential disputes among beneficiaries. Suggestions for Communicating Your Estate Plan Given these considerations, here are some suggestions on how to best communicate the details of your estate plan: Maintain a Record : Record what has been shared, who it has been shared with, and when it was shared. This can help ensure everyone is on the same page and minimize potential misunderstandings. Share Digital Copies : Consider sharing digital copies of your estate plan, accompanied by a cover letter or mark reminding everyone that the plan can change. This can help mitigate the risk of outdated drafts circulating. Provide a Summary : Instead of sharing the entire plan, consider providing a summary. This can give your family a general idea of your intentions without divulging all the specifics. Again, include a disclaimer that the plan can change. Remember, every situation is unique, and what works for one family may not work for another. It’s essential to weigh the benefits and risks before sharing your estate plan. As always, we’re here to help guide you through this process. Please note that this blog post is intended for informational purposes only and does not constitute legal advice. Always consult a qualified estate planning attorney for advice on your situation.
By Dan McKenzie 29 Dec, 2023
If you are unhappy with the terms of a will, you may have the right to challenge it in court. However, contesting a will is not easy and requires certain legal grounds and procedures. This blog post explains the basics of how to contest a will in Colorado, including who can do it, what reasons are valid, and what steps are involved.
By Dan McKenzie 26 Dec, 2023
Explore the essential steps to take when a trustee is not fulfilling their duties effectively. This guide provides practical advice on identifying trustee shortcomings and the legal actions available to address them. Ensure your trust is managed properly with our expert insights on trustee responsibilities.
By Dan McKenzie 24 Dec, 2023
The blog post outlines the formal probate process in Colorado, detailing when it's necessary and the steps involved. It serves as a guide for individuals navigating the legalities of estate management after a loved one's passing. The content is informative and designed to assist users in understanding the complexities of probate law in Colorado.
By Dan McKenzie 24 Dec, 2023
Discover the straightforward steps to initiate an informal probate process in Colorado with our concise guide. Learn what information is required for the application, including personal details of the decedent and your connection to the estate. Understand the importance of meeting the time limits for filing and find out how to navigate the process without a court hearing, all explained in simple terms. Ensure a smooth probate journey with our expert insights on Section 15-12-301 of the Colorado Probate Code.
By Dan McKenzie 21 Dec, 2023
What happens to the Will of someone who has passed away in Colorado? Learn about the custodian’s duty to deliver a will promptly and to the correct probate court, ensuring your loved one’s wishes are honored. Discover the importance of acting swiftly and accurately in the probate process to preserve legacies and avoid legal repercussions.
By Dan McKenzie 02 Dec, 2023
Although have a living trust often makes the administration of your estate easier, your successor trustee has many important tasks they might not know about. We offer seminars for successor trustees to help them learn what they need to do.
By Dan McKenzie 24 Nov, 2023
This blog post provides valuable advice for those tasked with administering an estate. It emphasizes the importance of establishing trust with beneficiaries, setting aside personal feelings, making conservative promises, and treating the estate like a business. The post offers practical tips and examples, making it a must-read for first-time executors and seasoned professionals alike.
By Dan McKenzie 22 Nov, 2023
As a trustee, your role is not just about managing assets but also about building trust and maintaining open lines of communication with beneficiaries. This is especially true in Colorado, where state law has specific trustee requirements. Understanding the Legal Requirements In Colorado, the law requires trustees to provide beneficiaries with the parts of the trust agreement that affect them. You must share any sections of the trust document that mention the beneficiary or impact their rights. It is not always clear which parts of the trust agreement must be produced. A page giving a specific gift to a particular beneficiary would need to be shown to that beneficiary. But about the "Definitions" section often included in trust agreements, where are specific terms defined? Additionally, trustees must provide an accounting at least annually or upon reasonable request from a beneficiary. This accounting should detail the trust’s assets, liabilities, receipts, and disbursements, including the source and amount of the trustee’s compensation. Going Above and Beyond While these are the bare minimum requirements, effective communication often involves going above and beyond what is legally required. Regular and transparent communication can help reassure beneficiaries that you are working diligently to represent their interests. For example, you might consider providing quarterly updates on the trust’s investments and performance, even if only an annual report is required. Or, you could offer to meet with beneficiaries individually to discuss their questions or concerns. Remember, it can be easy to raise suspicions by communicating too little, but you are unlikely to get into trouble by sharing more than required. Over-communication can often prevent misunderstandings and disputes before they arise. Co-Trustees: The Importance of Teamwork If you are serving as a co-trustee, communication becomes even more critical. You and your co-trustee must work together to manage the trust’s assets, which requires regular, open, and honest communication. Without effective communication, co-trustees run the risk of taking actions that are inconsistent or contradictory. This can confuse beneficiaries and potentially harm the trust’s assets. So, when in doubt, err on the side of over-communication. Conclusion Being a trustee is a significant responsibility, and effective communication is a vital part of the role. By understanding your legal obligations and striving to exceed them, you can build trust with beneficiaries and ensure the smooth administration of the trust. Remember, when it comes to communication, more is often better. Don’t hesitate to contact a legal professional if you have any questions or concerns about your duties as a trustee.
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