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5 Things to Know About Estate Planning in Colorado
Tracy Tirey

1. Understanding Estate Taxes

In Colorado, while there is no separate state estate tax, your estate may still be subject to federal estate taxes. It’s crucial to plan for these potential taxes to ensure that your heirs are not burdened with hefty tax bills upon inheritance.

2. Importance of a Will

A will is a fundamental part of estate planning. It outlines how your assets should be distributed upon your death. Without a valid will, Colorado's intestacy laws will determine the distribution of your assets, which may not align with your wishes.

3. Establishing a Trust

Consider setting up a trust if you want to ensure privacy and avoid probate. Trusts allow for the efficient transfer of assets and can provide specific instructions on how and when your heirs receive their inheritance.

4. Power of Attorney and Health Care Directives

These documents are essential for managing your affairs in the event that you become incapacitated. A power of attorney grants someone you trust the authority to manage your financial and legal matters, while healthcare directives ensure that your medical wishes are honored.

5. Regularly Updating Your Estate Plan

Life changes such as marriage, divorce, the birth of a child, or significant financial events should prompt a review and possible update of your estate plan. Regular updates ensure that your estate plan accurately reflects your current wishes and circumstances.

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