Patrick Plank, attorney - frequently asked questions

Frequently Asked Questions
What is Estate Planning?
Three simple steps in estate planning: 1. Meeting with you to determine how you want your property to pass at death - and who should act for you in case you are disabled or die. 2. Preparing the appropriate legal documents to meet your wishes. 3. Coordinating how assets are titled and beneficiaries are des- ignated so your estate plan works as it is designed. A typical estate plan includes a: -Will (with trust for any minor or incomplete beneficiaries) -General Durable Power of Attorney -Medical Durable Power of Attorney -Living Will A Will ...is a written document that states how you want your property to pass at your death. You also appoint a guardian to take care of any minor children, a personal representative (also known as executor) to carry out the terms of your Will and wrap-up all your financial matters, and a trustee to manage and distribute property on behalf of a minor child or someone who cannot handle financial matters. A Financial Power of Attorney ...is used to appoint someone to handle your finances in case you are unavailable or incompetent. The person acting on your behalf is called an agent. The agent can have broad power to handle all of your financial matters or you can limit an agent's power. You want to appoint someone who you completely trust to take care of your finances. A Medical Power of Attorney ...is used to appoint someone to make health care decisions in case you are unable to communicate those decisions with your doctor (for example, if you are in a coma). You want to appoint someone who is very strong emotionally and who would be able to handle making end-of-life decisions. A Living Will ...is a document whereby you state that: if two doctors certify you are terminal and comatose (or unconscious), life sustaining procedures would be stopped after a specified period of time (usually seven days). It is critical that the Medical Power of Attorney and Living Will are coordinated so that it is clear what should happen in case of a conflict between the two documents. top of page
What are the biggest mistakes made in Estate Planning?
Procrastination Our demise is unpleasant to think about so often we simply do nothing. After someone dies, we sometimes hear, “Mom promised me that I could have the house, but she never did a will.” If a valid will is not prepared, any assets in mom's name will pass according to Colorado law. Verbal promises of gifts upon death are not enforceable. If you want to make sure the proper people get your property, then you must have a valid will prepared. Do-It-Yourselfers Hands down, this is where many attorneys make the most money. If you want to ensure that your family will fight in court for years over your estate and put lots of money in attorneys pockets, this is the way you should go. Do-It-Yourselfers often forget to get witnesses, notaries, or fail to use clear language in the will. The same can be true with attorneys who do not specialize in estate planning. Do yourself and your beneficiaries a favor: Have your will prepared by an attorney who concentrates his or her practice on estate planning. Your beneficiaries will love you for it. Not coordinating your will, joint tenancy assets and beneficiary designations An example is where the deceased mom's will provided that her estate would be divided equally between her son and daughter. However, daughter was a “joint tenant” on a $100,000 bank account. At mom's death, the $100,000 joint tenancy bank account passed automatically to daughter in spite of what the will provided. This resulted in litigation between the son and daughter. The son and daughter have never spoken since. Avoid unintended results like this by working with an attorney who specializes in estate planning. top of page
Who needs an Estate Plan? Everyone!
If you fail to prepare a valid will, your property is transferred according to the laws of Colorado at your death. You also forfeit the right to designate a guardian for any minor children, personal representative to carry out the terms of your will and trustee to manage property for any minor children. As a result, the courts will make those decisions for you. Don't you believe it is better for you to be able to make those decisions?
Patrick Plank has the answer to these and many other estate planning questions:
Why is it important to have a will and estate plan? Should I purchase a book, will kit, blank forms or software pro- gram and prepare my own will? What are the best ways to simplify life for my loved ones in the event of my death or disability? What can happen to my children if I don't establish a plan? What is the value of coordinating my plans with an accountant, financial planner, insurance agent and others? I don't have a large estate, why do I need a will? How should title be recorded for the real estate, bank account and other assets that I own? How should I name the beneficiaries for life insurance, IRAs, 401(k)s and company retirement plans? Why should I designate “a power of attorney?” What proceeds should I follow to assure my wishes are know to my family and medical providers in the event of terminal illness or disability? How do I avoid probate proceedings? In addition to taxes, what other costs are involved in settling an estate? How do I minimize those costs? As a business owner, what special factors should I consider in my estate plan? Isn't it expensive to have a will prepared - or how much more expensive will it be not to have a will? top of page