A living trust can save a lot of grief

2008-01-17T16:05:00.000-07:00

From the Offices of Michael A. Robinson P.C., an Estate Planning Attorney
Colorado has adopted the Uniform Probate Code and frequently a revocable living trust is not necessary under our Colorado laws. However, there are some circumstances when it is a great tool.
1. Avoidance of Probate: You simply do not have to go through the probate process to dispose of property that is in the trust.
2. Creditors Rights: In most states, Living Trusts are not subject to the after death claims of creditors.
3. Surviving Spouse Elective Rights: In many states, a decedent can cut off elective rights by funding a living trust with their assets.
4. Challenges by Heirs or Trust Beneficiaries: It is far more difficult for heirs or beneficiaries to initiate and win a lawsuit against a living trust estate plan.
5. Tax I.D. Number: If either a trust maker or his or her spouse is trustee, there is no requirement to obtain a federal tax identification number or to file a fiduciary tax return. 6. Protect the Elderly from Scams: Major attractions of the revocable trust for the older client are ease and continuity of management. An elderly client (or his family) might wish the presence of a separate trustee as a precaution against vulnerability to fast-talkers bent upon depriving him of a life savings.
We can help with all estate planning needs. Michael A. Robinson P.C. 900 W. Castleton Rd. #135, Castle Rock, CO 80109 Ph. 303-688-0944, www.mikerobinson.com

Granting Power

2008-01-15T14:26:00.000-07:00

A "Power of Attorney" (POA) is an estate planning instrument granting someone authority to act as agent or attorney-in-fact for the grantor. The power of an agent under a common law power of attorney normally terminates upon the death or disability of the principal. If the grantor becomes disabled, the POA is without force and effect.
In Colorado, there is a way to get around this difficulty. We have enacted, by statute, the creation of a "Durable Power of Attorney". With a durable POA, the agent has power to act even if the grantor becomes disabled. A Durable POA for business purposes is a great planning tool for spouses and can be very valuable to a family if an accident or illness suddenly befalls a family member. For example, if a couple own their home in joint tenancy and the husband becomes incapacitated, the healthy spouse cannot easily sell the family home because the incapacitated spouse is on the title. You can make the POA have a "springing" power, i.e., it doesn't go into effect until the grantor becomes incapacitated.
In our office we usually have a few people come to the office with a family member who is suffering from Alzheimers or other dementia. They now want a Power of Attorney in order to handle the family member's finances. We have to tell them that now they must seek a guardianship and conservatorship because the ill family member cannot legally grant a Power of Attorney.
In addition, POA's are used for health care directives. Under Colorado Law, you can designate someone to make medical decisions on your behalf if you become incapacitated.

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Colorado Attorney Blog

A living trust can save a lot of grief

Granting Power