When people in Colorado plan for the future, they generally want to relieve the burden that may fall on their loved ones after they pass away. By creating trusts, making a will or designating powers of attorney, people can help to ease the difficulties of their loved ones in dealing with the disbursement of their assets. There are some key ways that people can help their beneficiaries avoid the probate process as much as possible, saving them time and money at an important moment.
In order for a will to go into effect, it must pass through probate court. Here, potential heirs could contest the will while creditors could file their own claims against the estate. In addition, the process could be extended if people die without a will or do not execute a new one after they move to another state. Even more, the outcomes of the state intestacy process may not reflect how people want their assets to be distributed. Having a will is important for people who want to make those decisions and save time in probate court.
Others may want to keep as many of their assets as possible out of the probate courts. There are a number of assets that pass without going through probate, and these often rely on a beneficiary designation. It is important for people to make sure that their beneficiary designations are correct and up to date, especially after they marry, divorce or have children. These accounts, including life insurance, retirement funds and investment accounts, may go directly to the named beneficiary without passing through the probate court.
There are a number of ways that people can help their loved ones navigate the probate process more easily. An estate planning attorney may advise people and help them develop the key documents they need.