Essential Estate Planning Documents Every Colorado Resident Needs

When people think of estate planning, a will is often the first (and only) document that comes to mind.  But, a well-rounded estate plan includes several essential legal documents that protects you during your life and at death. Whether you are 18, 30 or 70, single or married, estate planning is about being prepared for the event of death as well as the event of incapacity. Here are the must-have estate documents for estate planning in Colorado:

1. Revocable Living Trust (Yes, optional, but often necessary and/or very strategic)

A revocable living trust is the Swiss army knife of estate planning. With its many and varied

tools, you can avoid probate, protect assets for your beneficiaries (beyond any kind of protection

you can buy, quite literally), plan for multiple and varied contingencies (alcohol/substance abuse, special needs, etc.) as well as manage and distribute your assets privately. Revocable living trusts are almost always recommended if you:

• Have minor (under 21) children (to avoid Conservatorship)
• Own real estate in multiple States (to avoid probate in all of those States)
• Own a business
• Have a blended family
• Want to protect your assets for your beneficiaries

2. Last Will and Testament

A key component of any estate plan in Colorado is a Last Will and Testament (a “Will”). The primary purpose of any Will is to direct who gets your probate property when you pass. If you

set up just a Will estate plan, then you are either setting up your assets to transfer outside of

probate (via beneficiary deed for real estate and beneficiary designations on accounts), or you are wanting your property and estate to go through probate, for whatever reason. If you set up a

revocable living trust estate plan, then a Will is also included for the purpose of capturing and

transferring any probate assets that got missed (i.e. not transferred to the trust during your

lifetime) to your trust.

3. Durable Financial Power of Attorney

Whether you do a Will estate plan or a revocable living trust estate plan (both for the purpose of planning for the event of death), your estate plan should always include powers of attorney to plan for the event of incapacity. The first document for that purpose is a durable financial power of attorney. Durable means the document is created now and endures even into/past your incapacity. The purpose of the financial power of attorney is to name your agents, whoever you choose (though, usually the same people, same order as your personal representative or Trustee), to manage your property and finances in the even you are incapacitated to they can:

• Pay your bills
• Access your bank accounts
• Manage real estate or investments
• File taxes on your behalf

Without a durable financial power of attorney, your loved ones may need to go to court to obtain

a conservatorship over you if you are incapacitated, which is costly, time-consuming as well as

requiring court oversight and annual reporting to the court.

4. Medical Power of Attorney

The second document you need for purposes of planning for incapacity is a medical power or

attorney. In a medical power of attorney in Colorado, you appoint your agent, again whoever

you trust and choose, to make healthcare decisions for you if you are unable to do so yourself

due to injury and/or illness.

Without a medical power of attorney, your loved ones may need to go to court to obtain a

guardianship over you if you are incapacitated, which is also costly, time-consuming as well as

requiring court oversight and annual reporting to the court.

5. Living Will (a/k/a Advance Directive)

The third document you need for purposes of planning for incapacity is a Living Will (also

known as an Advance Directive). The purpose of the Living Will is to direct the removal of life

sustaining procedures (as defined by Colorado law) in the event you are incapacitated and

determined by two doctors to be in a “persistent vegetative state” or “terminal condition” (also as

defined by Colorado law). The Living Will allows you to direct:

• How long you wish to remain on life sustaining procedures, if at all
• When to remove artificial nutrition and hydration after other life sustaining procedures are removed
• Whether you want resuscitative measures during that time (e.g. CPR, mechanical respiration, antibiotics, maximum pain relief)
• Whether you want your wishes to prevail or give your medical powers of attorney authority to override
• Whether you wish to be an organ and/or tissue donor

A Living Will is a gift to your family because it takes the burden off your family to make those

very difficult decisions often in a crisis.

6. HIPAA Authorization Form

While HIPAA Waivers are generally provided for and/or are included in a revocable living trust,

as well as medical and financial powers of attorney, you should always include a stand alone

HIPAA waiver, just in case, as part of a complete estate plan in Colorado. The purpose of the

HIPAA waiver is to give your Trustee and/or agents under your powers of attorney legal access to your medical records so they can communicate with your doctors about determining

incapacity and make informed medical decisions for you.

Bottom Line

Estate planning in Colorado is not just about planning for death and incapacity – it is about living

with peace of mind. When you have these documents in place, you no longer need to worry

about what will happen if something happens to you. That is peace of mind.

If you are looking for peace of mind, let us at The Law Office of Kevin R. Hancock, LLC, help

you create an estate plan and experience that provides exactly that. Schedule a call today and

start checking off your estate planning checklist.