How often should I review estate plan?
It depends and not simply the passage of time (e.g.- example every 3 to 5 years), but is dependent more on life changing events, such as, the birth of a child, a marriage, the death of a spouse or child, the inheritance of monies, the change in the health condition of an heir; or a change in the situation of an heir which may require protecting the assets intended to be distributed to the heir. When in doubt call your attorney and ask if a review is necessary.

If I have a taxable estate are there any general guidelines on how to plan to reduce those taxes?
There are generally five ways to approach planning for the payment of estate taxes. First, you can remove assets from your estate through gifting of the assets to allow future appreciation on the gifted asset to pass from your estate to your heirs. Gifts can be outright or in trust; leveraged through special planning techniques such as QPRTs or GRATs. Next, you can make a gift to charity, in a variety of ways, to reduce the size of your estate essentially dollar for dollar. Third, it is possible to make the asset you own worth less on paper through use of a family entity such as a partnership or limited liability company. Fourth, it is possible to use life insurance to fund the anticipated estate tax liability. The life insurance is usually placed into a trust, not controlled by the insured, to insure it is not included in the insured's estate. The type of trust is usually referred to as in irrevocable life insurance trust or an ILIT. Last, depending upon your situation you may be able to pay your estate tax in installments if you the owner of a business which is a large part of your estate; or a reduction in the value of your estate to account for a special use valuation or other narrow special uses.

What if any death taxes will I have to pay when I die and before my heirs receive my inheritance?
Most individuals will have no death or inheritance taxes to be paid upon death. The first $5,000,000 of assets are excluded from estate taxation for decedent's dying in 2011 and 2012. In 2013 the amount is reduced to $1,000,000. If you have assets in excess of the exempt amount the tax is a hefty 35% of the amount in excess. The exemption is for each individual, so a married couple receives twice the individual rate. Everyone expects Congress to make changes before 2013 so it is important to monitor the changes.

What is a last will and testament?
Who should have a will? Generally speaking everyone should have a will. In most states an individual can create, execute, or sign a will if they are 18 years or older and have sufficient testamentary capacity. What constitutes testamentary capacity varies from state to state, but in one form or another it requires that the individual know his or her heirs, the assets which constitute his or her estate, and that a will distributes the testator's "probate" assets and not his or her non-probate assets, such as life insurance, property held in joint tenancy or retirement accounts. Does an individual have to hire a lawyer to draft the will? The answer is generally no, but doing so is ill-advised. Lawyers are experienced at drafting a will and ensuring that all of the appropriate requirements of a properly drafted will are met and that the terms of the will meet the client's intended results. What happens if an individual dies without a will? The law of the decedent's estate will create a will for the decedent. When an individual dies without a will it is commonly referred to as dying "intestate". The state's estate plan for a decedent dying without a will generally provides that the estate is to be distributed to the decedent's family. Rarely does the state's estate plan match the desired distribution plan of the decedent's. What does a will cost? A will can cost anywhere from a few hundred dollars to a few thousand dollars. The cost of a will depends upon many factors. Some of the factors include the complexity of the dispositive or distribution provisions, the time involved in counseling the client on the nature of the estate plan, and the time it takes to execute the will. Some lawyers draft wills based on the time spent, but many others draft on a flat fee. Don't hesitate to discuss the cost of the will in advance of the appointment or at the time of the initial appointment. Also, remember that price shopping may not always be the best approach to selecting an attorney to draft your will. Instead, interview the lawyer and feel comfortable that he or she can meet your needs, has the required expertise, and can provide value to your estate plan.

What is a living or revocable trust?
A Revocable Living Trust is a trust that is often viewed as a substitute for a will. This trust can be revoked by the settlor and may be funded or unfunded. According to a survey of the American Bar Association, over one-third of all estate plans utilize the revocable trust as one of the principal ingredients. In its simplest form, a revocable trust works like this: The settlor establishes the trust by entering into an agreement with the trustee, who can also be the settlor; During the settlor's lifetime, the trust can be revoked at any time in whole or in part and can be amended at will up until death or incapacity of the settlor; Upon the settlor's death, the trust must be administered and the assets distributed according to the trust's terms. As the "main vehicle" of the settlor's estate plan, the revocable trust will control the estate and all asset planning. To avoid circumventing the settlor's plan, all assets should be tied to the trust, including assets owned individually or as a partner or tenant in common. The other "non-probate" type of property, such as life insurance, joint tenancy property, P.O.A. property, pension and/or profit sharing plans, must also be coordinated through the "main vehicle" trust. Using a revocable trust has many advantages. It avoids the publicity, expense, and delay of probate in most cases. It allows you to view the trust in operation and to make changes as experience and new circumstances suggest. It brings together assets scattered in two or more jurisdictions and places title in the trustee, avoiding administration of the individual's estate in different jurisdictions. It may be less vulnerable to attack on the ground of the settlor's lack of capacity, fraud, or duress than a will or will-created trust would be. A revocable trust is an extremely useful vehicle under appropriate circumstances, but it should not be viewed as a "one-size-fits-all" estate plan.

When should I revisit my estate plan (or create an estate plan)?
In the practice of elder law and estate planning, we frequently see financial and emotional devastation from an extended illness or death befall families that have worked hard to secure the future of their loved ones. An extended illness or death is not something we want to plan for; however, careful thought taken before such an occurrence can ease the burden on family caregivers and remaining family members. For most of us, an estate plan (including wills, advance directives and durable powers of attorney) is essential as we grow older. If you do not yet have an estate plan, you should contact your attorney if he or she is familiar with estate planning. If you do not have an estate planning attorney, our firm would be happy to consult with you and provide you with an estimation of the best possible options concerning distribution of your assets, as well as consideration of your wishes and concerns. As life's circumstances change, there may be a need to review your estate plan and analyze whether there are provisions in your documents that you may want to change. Below are a number of questions to think about. A positive answer to any of them may indicate a need to either create an estate plan, or review your existing estate plan. Cancellation of Loans to Children and Equalization of Inheritance: I would like to discharge an obligation owed to me by canceling the loan in my will. I would like to provide a clause to equalize any gifts made in the past (or to be made in the future) to certain children (grandchildren). Change in Valuation: The value of my estate has changed in the last few years and may be subject to estate taxes (NOTE: Under the TRA '97, the value of a taxable estate has risen to $650,000 to decedents dying in 1999. The exclusion amount rises to 1 Million by the year 2006.) Guardian, Agents, Executors and Trustees: I would like to name a particular person as advisor to my personal representative and trustees. I would like to reconsider the designation of the guardians, agent under a power of attorney or health care proxy, personal representative, and trustees I have named. Life Insurance: I have added (or dropped) more than $50,000 of life insurance since our last review and believe my estate is taxable (over $650,000 in value). I have (or would like to) change(d) a beneficiary designation on an existing policy. I feel I may need more life insurance but I don't know how much to purchase or what type to consider. Long Term Care Costs: I am concerned about long term care costs and have considered purchasing long term care insurance. I believe I or a member of my family may need institutionalization in a skilled nursing facility and believe Medicaid must be available to assist me or a member of my family with the cost of care. Newly Born or Adopted Children: A child has been born (or adopted) since our last review. Other: I would like to know how the latest tax law affects my estate plan. Special Provisions for Children: A child (grandchild or other dependent) has become handicapped or seriously injured since our last review. One or more of my children receive SSI or Medicaid. Status of Family Marriage: A member of the family has become divorced or separated since our last review. Business Interests: I have entered into a stock (partnership) buy-sell agreement since our last review. My business situation has change significantly since our last review. Special Bequests: I would like to make specific bequests to individuals not presently included in my plans--or delete the names of one or more persons (or charities) currently named. I would like to change the amounts of some of the bequests I have made. I no longer own a specific asset mentioned in my will or trust. Gifts to Charities: I would like to add (or delete) one or more charitable beneficiaries. I would like to change the amount of my bequest to certain charities. Gifts to Minors: I would like to make substantial gifts to minor children (grandchildren).

What is the average cost of skilled nursing care in Colorado?
$6,394 per month statewide. The exact cost varies from region to region.

How should I plan to pay for my long term care costs?
There are primarily five approaches to paying for your long term care costs. They are Medicare (a short time government program); private pay; veteran's benefits, generally, to veterans with a service connected disability; long term care insurance and Medicaid (a government program which can help cover long term at-home; assisted care and skilled care.

What is a financial power of attorney?
The Power of Attorney for Property (or Financial Power of Attorney) is a document used to insure that your wishes are followed at a time when decisions that need to be made cannot, due to diminished capacity. Before executing a power of attorney for property specific state requirements should be reviewed. The Power of Attorney for Property gives your agent (attorney in fact) the right to handle your real property transactions, to gift your assets, to create a trust, to handle your stock and bond transactions, and more. You decide which options your agent can can handle for you.