Talking Wills & Estate Planning Around the Thanksgiving Table

 The Thanksgiving holiday week is well-known to be the heaviest travel time of the year, bringing families and friends together from near and far. While you have them gathered in one place, it’s also the perfect time to talk about estate planning matters with your family. A big piece of the discussion is understanding how estate administration actually works. 

 

While it can feel awkward or difficult to start a conversation about a relative’s (or your own) death, it’s crucial that family members and beneficiaries understand the intricacies of estate administration and how to avoid common missteps that can complicate and prolong the process.

 

Intestate – The Unintended Consequences

When a person passes away intestate, meaning without a will in place, there can be unintended consequences. Without a will, you lose control.

 

If a person does not have a will, they lose control over where their assets will go. Maybe the decedent has separated from a spouse or is estranged from their children. Without a will, the assets may still go to the estranged party despite what the decedent’s most recent wishes may have been. 

 

Dying intestate in Colorado triggers a set of statutory rules to distribute assets and settle an estate. In general, the distribution of intestate assets will go in this order:

 

1. Spouse: Generally, the surviving spouse will receive the majority of the estate, which likely would include the primary residence and personal belongings.
2. Children: Then the estate gets divided equally among the surviving children. The court will appoint a guardian to manage assets for any minor children until they are of age.
3. Parents: If there is no spouse or children, the decedent’s parents (if still living) will receive the estate.
4. Siblings or Extended Family: If there is no spouse, no children, and no living parents, the estate will pass to the next of kin (ex., grandparents, siblings, nieces, nephews, etc., following a complex order of hierarchy).
5. The State: In the event of no living next of kin, the assets will go to the state.

 

Related: See Tips for Avoiding Accidental Disinheritance.

 

Without a will, a person also loses control over who manages and serves as the personal representative (i.e., executor or administrator) of the estate.  Again, dying intestate in Colorado triggers a set of statutory rules to appoint a personal representative to administer the estate. These rules give priority to the spouse, then to the next of kin, and even potentially, to the deceased’s creditors.

 

Complications from Intestacy

Beyond the problem of losing control of how and to whom your assets are distributed, dying intestate can also cause a variety of other problems for your family:

 

1. Legal Disputes: Dying intestate can create general ill will among your family, which can lead to lengthy and expensive legal disputes born out of resentment, grief, and anger.
2. Tax Woes: Without an estate plan or will, there may be unintended tax consequences for your loved ones that could have been prevented or lessened with a more proactive strategy.

 

Show Gratitude for Your Family by Making a Plan

The best way to avoid these pitfalls is to make a comprehensive estate plan, and to periodically revisit it every couple of years or with each major life change (marriages, divorces, births, deaths, financial changes, etc.). But it’s equally important to talk with all of your family members (siblings, parents, etc.) and make sure they understand what’s at stake if they don’t have a proper estate plan. 

 

Don’t Go It Alone – Seek Professional Advice

Estate planning isn’t a DIY process, especially if you have complex assets or family dynamics. The experienced attorneys at Hackstaff, Snow, Atkinson & Griess have the expertise to design an estate plan that’s comprehensive and strategic – ensuring your assets are distributed exactly to your wishes. Contact us today for a free consultation.