Most of us hear the horror stories of “probate," but often do not understand what it is or how to avoid it. Probate, simply, is an area of law. It governs a person's affairs and happens when a person becomes incapacitated or dies.
Incapacity + Probate
Take, for example, an elderly parent who suffers from Alzheimer’s Disease. Somebody needs to be able to care for this parent, but nobody can take over by default. A bank will not let you walk in and take money out of someone else's account. The only solutions are (1) a court order, or (2) a Power of Attorney. If this happens and there is no POA, the next person to help must be appointed by a probate judge. This happens with a “Conservatorship” (financial decisions) and/or a “Guardianship” (medical decisions).
How do I avoid this? Create Powers of Attorney and Medical Directives! These documents appoint your best people to assist you when you need it. They also instruct financial institutions and medical providers about what to do for you. POAs and Medical Directives exist your entire lifetime, work everywhere, and you can update them as much as needed.
Death + Probate
Let’s assume instead that the parent has died and left behind a house, bank account, etc. in their name. If any of those titles were only in their name, nobody can manage the assets. Titles become stuck in someone's name, and we use probate to "un-stick" them. In probate, the court appoints a “Personal Representative” (Executor) to take possession of the property and distribute it. This can happen either under the terms of a Will or the default laws for inheritance ("intestacy").
How do I avoid this? Create an estate plan! There are multiple ways to set up an estate plan. You might structure “beneficiary designations” on all your assets to transfer quickly after death. Or you might set up one or multiple trusts to hold and manage assets after you die. How you plan depends on your goals, your concerns, and your assets, but remember you have options!
What does this mean for my loved ones?
In Colorado, the cost of probate varies, but can reach thousands of dollars after little time. These costs are on top of time, effort, and court appearances. Most important, probate also opens the door to conflict. If a person becomes incapacitated or passes away without a plan, family members can fight. Disputes happen about who should make decisions, how to divide inheritance, and other issues. But if probate never happens, these disputes are avoidable. Do not become a horror story!
Probate always seems scary, for good reason, but you can avoid it. The attorneys at Opfer | Campbell | Beck P.C. are here to provide you a NO-COST, NO-OBLIGATION estate planning consultation. Our office will provide you education, resources, and a plan of action. For more information, contact our office today!
Parker Station - 19751 East Mainstreet, Suite 215
Parker, CO 80138
Summit County - 620 East Main Street #6
Frisco, CO 80443
The experienced attorneys of Opfer | Campbell | Beck P.C., serve clients throughout both the Denver, Colorado (CO), metropolitan area , as well as clients and cases in Summit County.