The Law Firm of Bruce A. Danford, LLCBroomfield Estate Planning & Probate Lawyer | Estate Administration2025-03-31T12:36:24Zhttps://www.brucedanford.com/feed/atom/WordPress/wp-content/uploads/sites/1201426/2019/08/apple-touch-icon-75x75.pngOn Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[What is the difference between a guardianship and conservatorship?]]>https://www.brucedanford.com/?p=471282023-11-27T12:10:32Z2021-03-04T01:09:29Zthe financial- and health-related aspects of the two roles. Help your parents by helping yourself to a well-rounded estate planning education.
Conservatorship
A conservatorship gives a designated individual, known as a conservator, the right to make financial decisions for a mentally or physically compromised person. The conservator handles assets such as investments and bank accounts, and the individual tends to common financial obligations such as gathering debts and tending to outstanding bills.
Guardianship
With guardianship, the designated person has the authority to make medical and personal decisions for an individual a court deems physically or mentally compromised. Specific decisions that fall on a guardian's shoulders include those related to housing, healthcare treatment and general safety.
Designating a conservator or guardian
Your mother and father may create a durable power of attorney, living will or medical power of attorney to name their conservator or guardian. Even then, their chosen person must have the mental capacity and ability to fulfill the role. Your parents may list the same person to serve both roles, but the court may protect your mother's and father's interests by dividing the roles between two or more people. Should your mother and father require two guardians or two conservators, the designated individuals divide decision-making power.
Older adults deserve proper care and peace of mind, no matter their mental or physical state. Share your insights on conservatorship and guardianship with them.
]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[Encouraging unity in your family after you die]]>https://www.brucedanford.com/?p=471252021-02-23T22:01:26Z2021-02-23T22:01:19ZEncouraging a compromise
The most effective method of reaching a win-win agreement is to learn the value of compromise. According to Neptune Society, allow everyone to give input when discussing the details of your estate plan. Involving your family will allow you to see which topics people agree about and which topics may cause a bit more tension.
Encourage your family members to show grace and empathy for each other in reaching a compromise that will work for everyone. Practicing this kind of decision-making while you are still living may encourage your family members to do the same if disagree on something after you die.
Sharing your legacy
Think about which characteristics you want your family to remember you for. Consider your legacy and ways that you can encourage your family members to carry it on. Sharing your legacy and your end-of-life wishes with your family members can encourage unity and respect for one another.
While you cannot prevent all heartache or discord after you die, you can help protect the feelings and concerns of your surviving family members with adequate planning. Take a proactive role in planning for your future and discussing your expectations well in advance of your death. This can provide reassurance and comfort for the people you care about.
]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[Understanding the probate process]]>https://www.brucedanford.com/?p=471202021-02-15T02:54:16Z2021-02-15T02:54:09ZTypes of probate
According to the Denver Bar Association, probate is not necessary if the assets have a beneficiary designation or there is joint tenancy on property and financial accounts. All other estates need to go through some sort of probate.
The small estates category is for those that contain no real property and have $50,000 or less in assets. No court action is necessary, and heirs collect assets through an affidavit.
Uncontested estates refers to those in which there is a valid will, and no one is contesting it. An executor administers the estate, and the court only plays a limited role.
When there is a will, but it is questionable or contested, this is a contested estate. The court may involve itself in all transactions or may give the executor more leeway.
The minimum time for both contested and uncontested probates is six months, although it is common for estate administration to last longer than that.
Role of the estate executor
The estate executor is an important player in the probate process. The decedent may name this person in the will, or the court will name someone. According to the Colorado State Archives, an executor is responsible for identifying and locating all assets, liquidating assets to pay debts and bills, paying taxes and distributing assets and property to the named heirs.]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[How does a divorce affect your estate plan?]]>https://www.brucedanford.com/?p=471172021-02-11T01:11:30Z2021-02-11T01:11:22Z6 out of every 10 Americans do not have even a basic will.
It is usually a good idea to review your estate plan after certain life events, including divorcing your spouse. In Colorado, dissolving your marriage is likely to have an immediate effect on your estate plan.
Colorado law
If you drafted your will or created a revocable trust during your marriage, Colorado law is likely to kick your spouse and any of his or her relatives out of it. That is, state law automatically revokes bequests and appointments, provided you made them in your will or revocable trust while your marriage was valid.
This provision does not apply to the children you share with your spouse, even though they are relatives of your husband or wife. Accordingly, any bequests and appointments you made to your kids in your will or revocable trust are likely to survive your divorce.
A voidability problem
Even though your spouse may automatically fall out of your will or revocable trust when you finalize your divorce, you probably want to rework your estate plan. That is, the automatic removal of your spouse may void the entire plan.
Estate planning should give you peace of mind. Because your divorce is likely to inject some uncertainty, you should plan to rewrite your estate plan after ending your marriage to be sure it continues to reflect your genuine wishes.]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[How should you include your special needs child into your estate plan?]]>https://www.brucedanford.com/?p=471142021-01-27T23:59:01Z2021-01-27T23:58:55Zsupplement their benefits.
Choosing a special needs plan
When it comes to deciding what your child’s financial future will be, there is a lot that you have to take into consideration. There is no one-size-fits-all estate plan, but you can learn from others who have had to go through similar experiences. Choosing the estate plan that will benefit your child’s future depends heavily on his or her circumstances now and the circumstances that you can foresee.
You need to ask yourself whether he or she has the capability of holding down a job. Will he or she ever be able to work? Is there a family support system available to the child?
Understanding special needs trusts
There are a couple of different types of special needs trusts. The first is a first-party trust. The first-party trust receives funds from an inheritance or award. With a first-party trust, if the beneficiary dies, Medicaid may seek reimbursement from the funds in the trust. A third-party trust, on the other hand, uses funds from life insurance policies or the individual’s family member. If a family has enough funds, they can fund a third-party trust on their own.
Special needs trusts provide for children or adult children that may have disabilities or impairments that prevent them from being independent.
]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[What is POA abuse?]]>https://www.brucedanford.com/?p=471092021-01-13T21:20:20Z2021-01-13T21:20:13Zpower of attorney is a document that permits another person to act on your behalf. If you can no longer make decisions for yourself, you can choose someone that you trust to make financial decisions.
A power of attorney or POA is a great tool, but because it gives your agent authority, you need to understand the risks too. POA abuse is possible.
Understanding POA abuse
POA abuse has many forms. It could come in the form of pressure from the agent or your agent could spend money on him or herself instead of on you. Your agent should act in your best interests but he or she should not do anything that you did not authorize. For instance, your agent should never change beneficiaries on your retirement plans.
Protecting against POA abuse
To protect against POA abuse, you must trust the person you choose as the agent. State all your wishes clearly, without the chance of confusion. You do not have to let your agent go unchecked. You can require your agent to report to another person when he or she makes financial transactions. Also, let others know about your POA so that they can watch out for your best interests.
Do not trust someone too eager to help you with your finances. If your agent suddenly wants to become close friends, be wary. None of your POA designations must remain permanent. If something happens where you no longer trust your agent, you can cancel your POA.
Ultimately, POAs are helpful documents worth considering. Understanding the risks, however, can prepare you in case of abuse.]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[Planning for the potential of estate taxes]]>https://www.brucedanford.com/?p=471042020-12-31T01:12:17Z2020-12-31T01:12:11Zthe Colorado General Assembly, the state has not collected estate taxes from its residents since 2014. This means that the only potential tax liability local residents need concern themselves with comes from the federal government. Yet one might even be able to avoid that potential expense (with proper planning).
The federal estate tax threshold
Yet before one worries themselves over the potential of a federal estate tax liability, they should first know whether they will even owe taxes in the first place. The federal government sets an annual estate tax exemption amount to determine which estates will be subject to tax. According to the Internal Revenue Service, the exemption threshold for 2021 is $11.7 million. Executors for any estates whose total taxable value falls below that amount are not required to file a federal tax return.
Estate tax portability
The process of portability allows married couples to effectively double their estate tax exemption amount, protection up to $23.4 million to pass on to future generations. Portability refers to the sharing of tax benefits between eligible parties. This process is not automatic, however, and one must plan to execute it correctly in order to avoid inadvertently pushing the value of their spouse's estate above the exemption threshold.
First, one must plan to leave their entire estate to their spouse. This preserves their entire exemption amount (as their estate plans instead utilize the unlimited marital deduction). Their ex-spouse can then claim the unused portion of their estate tax exemption by filing a return electing portability within nine months of their death.]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[What are the two main types of living trust?]]>https://www.brucedanford.com/?p=469412020-12-15T16:26:51Z2020-12-15T16:26:44ZMost adult Americans are familiar with the concept of a will. However, many people have no idea of the benefits associated with living trusts. While a will can do many things, there are some limitations. For this reason, many estate planners elect to have both wills and living trusts as part of their plan.There are two major varieties of living trust. Which one you choose depends on your particular estate planning needs. As per Experian, the two major varieties of living trusts are revocable and irrevocable.
What can a revocable trust do?
Revocable trusts are a good path to take if you want to ensure that important assets like your house do not get stuck in probate. If you pass down property using a will, that property will need to go through the probate process. Probate can be expensive and very time-consuming, particularly if somebody does decide to challenge your will.If you put your property into a revocable trust, it will skip probate and go automatically to your heirs. Additionally, you can make as many changes as you wish to a revocable trust while you are still alive, and anything in a revocable trust remains your personal property until death.
What can an irrevocable trust do?
On the other hand, once you create an irrevocable trust you cannot make any changes to it. Irrevocable trusts are helpful if you would like parts of your estate to avoid estate tax. Once you put assets into an irrevocable trust, they become the property of the trust and no longer your personal property. This means that the government cannot subject anything in an irrevocable trust to estate taxes and creditors cannot go after those assets.]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[4 times you should update your will]]>https://www.brucedanford.com/?p=469382020-12-03T01:03:31Z2020-12-03T01:03:25ZIf you are like many Americans, you may not have taken the time to create a will yet. According to a survey released by Caring.com, only 4 out of every 10 people in the U.S. has a will or a living trust.A will lets you name a guardian for any of your minor children, dictates how you distribute your assets after you die and names an executor for your estate. Once you create your will, there are times you should update this document to ensure it always reflects your wishes.
1. You have a new child
When you have your first child, you should make a will to name a legal guardian. For any other children you have or adopt, you should update your will to include them in your estate.
2. You get divorced
If you recently divorced your spouse or have plans to get divorced, update your will. Altering this legal document soon after you get divorced or before will ensure your ex does not have legal right to any of your assets.
3. You want to change a beneficiary
When you originally created your will, you may have been happy with the beneficiaries you chose. If something has changed within your family or with a close friend included in your will, look over this document and make alterations.
4. Time has passed
When you create your will, you should not forget about this document. Review your will on a regular basis to account for changes in your family life and financial circumstances.]]>On Behalf of The Law Firm of Bruce A. Danford, LLC<![CDATA[What should you look for when choosing a guardian?]]>https://www.brucedanford.com/?p=469352020-12-01T00:31:16Z2020-12-01T00:31:10ZEven if you do not have much in the way of valuable assets, an estate plan is essential if you are a parent. You should choose a guardian to take care of your children in case you should die before they come of age.Obviously, you must choose a guardian who loves the children as much as you do, but this is not enough on its own. What To Expect explains what else you have to take into consideration when choosing a guardian.
Financial stability
Your choice of a guardian does not have to be wealthy, but he or she should be able to provide consistently for your child's needs. If the person you are considering as a guardian has a steady job and owns a house, these are factors in his or her favor.
Age
You should take into consideration the age that your children are now and how old your intended guardian will be when the youngest turns 18. Think about whether the guardian's age and physical condition may prevent him or her from providing the care your children need.
Family factors
Does your choice of a guardian have a relationship with your children's extended family, e.g., your immediate family and your in-laws? If so, what is the nature of that relationship? Do they get along well? You should choose a guardian who is willing and able to continue the children's relationship with their extended family.
Values
You should talk to your intended guardian about the values that are important to you. Find out if the guardian will raise the children in a way that is consistent with your values. It may be that you want your children raised in a particular religion, in which case you should probably choose a guardian of the same faith.Remember that if you change your mind about the choice of a guardian later, you can update your will to reflect it. Before naming a guardian, you should ask for his or her consent. It is also a good idea to name alternate guardians in case your first choice is unavailable if the need arises.]]>