Dealing with Estate Taxes

people, however, who do not have the services of a qualified estate planning attorney can understand the intricacies of the new laws in place. When someone passes away, the last thing their loved ones want to deal with are complicated rules and procedures regarding the estate, especially since in addition to the federal tax laws, each state—Colorado included—has its own estate planning laws. People in Colorado would be wise to consult a Colorado estate planning attorney early; having your affairs in order before you pass away can save your loved ones years of added grief.

A recent article by the New York Times discusses some of these issues:

• Only those who make over a certain amount of money are subject to federal estate taxes.
• Those who came into inheritances in 2010 can opt out of the new tax scheme or choose to be subject to it.
• Those who opt out will be subject to new and different taxes should they ever try to re-sell the inherited assets.
• The deadline to choose is November 15, 2011
• A major responsibility for the division of assets and the applicability of the new tax scheme will fall onto the shoulders of the estate executor.
• The I.R.S. has yet to release a final version of the new tax form 8939 which includes the intricacies of the new inheritance tax scheme.

This new tax scheme is complex and could be subject to favoritism on the part of executors. If you live in Colorado, estate planning attorneys Ellman & Ellman, PC, can help navigate not only those situations in which inheritance taxes become contentious, but the common difficulties of balancing federal laws with Colorado inheritance tax laws. A little preparation in advance could save your descendants months or even years of frustration.

Estate Planning and Advanced Directives

In order to make sure that you and your loved ones are cared for if you get seriously ill, it can be important to speak with a Colorado estate planning attorney. A lawyer who understands Colorado estate law can help you draft important legal documents like powers of attorney, living wills or advanced directives.

If you’ve never stopped to think about what will happen if you have serious medical issues, these documents can be confusing. An advanced directive is any document that gives instructions as to your wishes in advance of your becoming ill. These documents can include:

• Medical Power of Attorney: This document gives permission for another individual to make medical decisions on treatments or other care if you are incapacitated by illness or injury and unable to give informed consent to medical professionals.
• Living Will: A living will sets forth your wishes regarding life-saving medical treatments and life support in the event that you are rendered unconscious or unable to give informed consent for seven consecutive days.
• Resuscitation Directive: This type of legal document directly addresses your wishes regarding resuscitation techniques such as breathing tubes or CPR procedures, and it can be included in advanced directives, living wills or other legal documents.
• Disposition of Last Remains: This advanced directive addresses how you would like your remains to be handled if your illness or injury is fatal. Like a CPR directive, this legal statement can be included in other documents.

While these types of wishes can be difficult to think about when we are healthy, it can be very important to include advanced directives or living wills in other estate planning documents. Many medical treatments such as breathing tubes, life support or resuscitation techniques can be expensive, and these medical treatments can affect your final estate. A Colorado estate planning attorney can help you safeguard your assets and provide for your family.

By specifying how you would like to be treated if you become terminally ill or seriously injured, you can save your family from heart-wrenching decisions in a time of crisis and make sure that your estate is managed properly. Contact a Colorado attorney today to discuss the legal documents that can safeguard your family against unforeseen circumstances.

Everyone Should have a Living Will

There are many medical breakthroughs that extend our lives found on practically an everyday basis. Some people however are more interested in the quality of life vs. the quantity of years in that life. The living will is a document that gives you a say in your future medical care even if you are in a coma or suffering from advanced Alzheimer’s disease or dementia. This instrument can specifically outline what measures of resuscitation you would want to have or fore-go if circumstances necessitate such a decision. The Colorado estate planning attorney can help you with this and all other aspects of your future care. When you are drawing up your last will and testament it makes sense to draw up a living will too. The Colorado estate planning attorney can also advise on steps that can be taken to protect your home from being lost due to the high cost of nursing home care. They can advise you of the legal solutions that can be put in place to protect your assets.

Depending on the size of your estate, you may want to set up a trust or other legal entity to maximize the value of your estate by minimizing the taxes that will have to come out it. You can look out for your own best interests and your heirs by consulting with a Colorado estate planning attorney. You will be safe in the knowledge that an expert will be handling your affairs properly and honestly. They will be an enormous source of help and comfort to your loved ones at a very difficult time for them. The Colorado estate planning attorney has the knowledge and experience in all these areas and this can be invaluable to you and your family.

Medical marvels are seen on television and in newspapers every day. Some improve the quality of life. If you want to insure your quality of life a living will is a must. A meeting with a Colorado estate planning attorney can improve your quality of life in many ways. Protecting your assets, aiding your heirs in handling inheritance taxes, and having the peace of mind that your final affairs are being handled honestly and professionally will also improve your sense of well being now and in the future.

The Estate Tax has Returned

The IRS estate tax was on hiatus in 2010 but it has returned. There are rules on when you have to file and what is included in the estate. The Colorado estate tax is based on the death tax credit allowable on the federal tax return. If you would like to have your heirs protected from being taxed unnecessarily by these two jurisdictions, you need to meet with a Colorado estate planning attorney. The Colorado estate planning attorney is knowledgeable in all state and federal tax law. When you are drawing up your will you can investigate options such as trusts and any other tax protection measures that can be taken to reduce any tax liability your estate causes your heirs. For example; some life insurance proceeds and annuities will not be considered part of the “gross estate” and the Colorado estate planning attorney may be able to recommend you purchase one of these products

The Colorado estate tax attorney can give you a layman’s understanding of the tax codes involved. The larger the estate, the more complicated the taxes can be. Not only will the estate planning attorney be helpful to you, they will be there for your spouse, children, and any other heirs, when the time comes, to explain all the actions required of them by the state and federal government in the filing of estate taxes. Make no mistake any appreciable amount of money or property will be reviewed by the government at this time and you want to be sure all that could have been done before your passing has been done. The Colorado estate planning attorney is the professional you need to get this job done.

The tax code for income can be complicated enough. When it comes to estate taxes the matter is complicated by the death of a loved one. Filing returns and tending to errands caused by improper planning of your estate is not what you want your heirs doing. People work their whole lives to provide for and protect their family. Consulting with a Colorado estate planning attorney is just another way to show how deeply you care for your loved ones.

Tips for Choosing Guardians

Creating a will involves making many decisions–how to divide property, whom to bequeath your prized possessions, who will care for your children, etc. Choosing a guardian to care for your young children should not be done on impulse. Here are a few tips to follow when selecting a guardian.

Always name a temporary or short-term guardian, and a permanent or long-term one. A temporary guardian is one who assumed guardianship on a temporary basis, such as when you are temporarily incapable of caring for your children due to illness or being away on business for a few months. A permanent guardian assumes guardianship when you pass away.

Choose alternate guardians. You should choose at least two alternates for both your temporary and permanent guardians in the event either one is not available when you need them.

When considering a couple as guardians, decide whether you want both persons to be guardians or just one of them. If you name your brother and his wife as guardians, and something happens to your brother, his wife, whom you really never could stand, would be guardian of your children. Using phrases like “jointly only”, “alone” or “jointly or the survivor” will clearly define whom you want as guardians for your children.

Exclude in writing those individuals you do not want as guardians for your children. You can draw up a legal document naming such persons and have it notarized. Don’t worry about hurting anyone’s feelings. You have a right to protect the interests of your children after you are no longer around to do it yourself.

Why You Need a Living Will

Not only should you consider a Living Will Declaration, you should also consider a Health Care Power of Attorney. Should you become too sick or incapacitated to make your own decisions regarding your health and medical care, these two legal instruments will give you a voice when you no longer have one.

The Health Insurance Portability and Accountability Act (HIPAA) has imposed privacy restrictions on health and medical information in order to protect and safeguard patient confidentiality. While this is essential, it can make it difficult for a loved one to get crucial medical assistance. A Living Will and Health Care Power of attorney will enable your loved one to help you with medical decisions when you are no longer able to make them yourself. These instruments also ensure that your wishes regarding your treatment and end of life choices are honored.

A Health Care Power of Attorney is a document you sign, authorizing an individual, known as an attorney-in-fact, appointed by you to make all health care decisions when your doctor determines that you are unable to do so for yourself. With a Health Care Power of Attorney would enable your attorney-in-fact to gain access to your medical records. In addition, this document may also give your attorney-in-fact the right to refuse hydration and nutrition if you are terminal or permanently unconscious.

A Living Will Declaration is a document stating your wishes regarding health care administered to you once you become terminal or in a vegetative or permanently unconscious state. This would involve the right to refuse nutrition and hydration and instituting a “do not resuscitate” order. A Living Will is only effective when you are completely incapacitated and if two doctors agree that your condition is terminal or you are permanently unconscious. In addition, the doctors must notify and get permission to withhold nutrition and hydration from the persons you wish to be notified in the event this occurs.

You will also need to sign a Living Will declaration if you wish to donate organs upon your death.

An estate planning lawyer can assist you with every aspect of this area of planning how your estate is handled upon your death.

Why You Should Have a Will

You should have a will to ensure that your property, money, prized possessions or any other items of value are left to whom you would want to have them after you are gone. Contrary to belief, wills are not just for the rich. Anyone with something of value should consider drawing up a will, if for no other reason than to prevent the inevitable bickering over your estate when you’re gone. With the help of an experienced estate planning attorney, you can easily draw up a will that will keep everything in order after you are gone.

Should you die without a will, state probate laws distribute your property in a manner that it would be distributed if you had a will. What does this mean exactly? For example, if you are married but separated from your estranged husband and you die without a will requesting your estate be bequeathed to a designated beneficiary, your estate will to your estranged husband–which would be last thing you would want if your separation wasn’t an amicable one. If you are single with no children and you die without a will, your living parents would get your estate. If both of your parents are deceased, your estate would go to your siblings. If your siblings are deceased, your nieces and nephews would inherit your estate.

A circumstance where is a will is vital when you are the guardian of a special needs child or have children whom you feel are too young or otherwise incapable of handling a significant lump sum inheritance. You can draw up a testamentary trust, which is created by your will upon your death, where the inheritance is kept until a child reaches a certain age. In the case of a special needs child, the testamentary trust can serve as a means of financial support.

You can write your own will and sign it, but it will only be a signed piece of paper. In order for a will to be a valid legal documents, it must witnessed and notarized. In addition, you should enlist the aid of an estate planning attorney to explain the legalities and walk you through the process.

Estate Planning: Why Do You Need a Trust?

You don’t think you need a trust? That’s your prerogative. If you have a significant amount of assets, your family will have the privilege of fighting over your prized possessions when you die. If that’s not disturbing enough, there’s a good chance that people you liked the least will get the most of what you left. All because you didn’t think a trust was really that necessary.

A trust serves as a legal written document that specifies how your property and assets are to be distributed and administered–and to whom. You can create one of two types: a living trust and a testamentary trust.

Of course, the living trust is created while you are alive. It can be revocable or irrevocable, but making it revocable allows you more freedom to modify or make changes, add or take away assets or terminate the trust. You don’t have this flexibility with an irrevocable trust.

A living trust enables your assets to avoid probate. It can also expedite the distribution of assets to your beneficiaries because again, it avoids going through the tedious probate process. A living trust preserves the privacy of your estate plan because such a trust does not need to be filed with the court, like a will does. It’s also much cheaper to create a living trust than it is to administer a will through the court probate process. In addition, there is no need to establish a conservatorship with a living trust should you become incapacitated.

A testamentary trust is a legal written document that outlines provisions to be carried out after your death. It is either established through your living trust or will.

For more information about trusts or to set up an a trust in your will, contact a qualified Colorado estate planning attorney today.