Considering Digital Assets in Your Estate Plan

Published on October 14, 2020. Last Updated on October 28, 2025.As an elder law attorney, one of the most common questions I hear is, What kind of estate planning do I really need? The truth is that no two estate plans are the same. Each persons goals, family circumstances, and financial situation shape the details. However, there are a few core legal documents that everyone, regardless of age, income, or health, should have in place. These documents form the foundation of every solid estate plan. They protect you during your lifetime, guide your loved ones if you become incapacitated, and ensure your wishes are carried out after your death. Without them, your family could face unnecessary financial complications or court involvement at an already difficult time. Lets walk through the essential components of a complete estate plan, why each is important, and how they work together to safeguard your future. 1. A Last Will and TestamentA last will and testament is the cornerstone of most estate plans and for good reason. Its your opportunity to maintain control over what happens to your assets after your death.Your will allows you to:Designate who receives your property and assets.Appoint an executor to handle your estate.Name a guardian for minor children.Its important to understand that a will governs only probate assets property held solely in your name without a designated beneficiary. For example, your house, car, or personal belongings are typically included in your will. However, assets with joint ownership or beneficiary designations, such as retirement accounts or life insurance, pass directly to the named individuals. This means if your will leaves everything to your spouse but your life insurance still names a former partner, the insurance company must legally pay the named beneficiary, even if your will says otherwise. Without a valid will, your states intestacy laws decide who inherits your estate and that may not align with your wishes. For example, unmarried partners, stepchildren, or close friends typically receive nothing under intestacy laws. A well-drafted will ensures your property passes the way you intend and that the right person manages your estate. 2. Financial Durable Power of AttorneyA Financial Durable Power of Attorney (POA) gives someone you trust the authority to manage your finances if you become unable to do so. This could include paying bills, managing investments, selling property, or handling taxes. The term durable means the power continues even if you become incapacitated. You can also decide when the authority begins immediately upon signing, or only if a doctor determines you are unable to manage your affairs. Why does this matter? Without a durable POA, your family may need to go through the court process of guardianship or conservatorship to handle your finances. That process is often time-consuming, costly, and emotionally draining.For instance, one of my clients a retired teacher suffered a stroke and was unable to handle her bills or bank accounts. Because she didnt have a financial power of attorney, her daughter had to petition the court for guardianship, which took nearly three months and thousands of dollars in legal fees. Had a POA been in place, her daughter could have immediately stepped in to keep her mothers finances stable.By signing a durable financial POA in advance, you ensure that someone you trust can step in seamlessly if needed, without court involvement. 3. Health Care Power of Attorney and Living WillA Health Care Power of Attorney (also called a medical proxy) designates a trusted person to make medical decisions on your behalf if youre unable to communicate your wishes. Your chosen person called your health care agent can talk with doctors, access medical records, and make treatment decisions consistent with your values and preferences.Often, this document is paired with a Living Will or Advance Health Care Directive, which outlines your wishes regarding life-sustaining treatments, such as:Use of ventilators or feeding tubesPain management preferencesOrgan donationResuscitation decisions (DNR orders)Together, these documents ensure your medical wishes are respected and your loved ones arent left making difficult choices under stress.For example, one family I worked with had never discussed end-of-life wishes. When their father fell critically ill, his children disagreed about whether to continue life support. It caused painful family conflict at an already emotional time. If their father had completed a Living Will and appointed a health care proxy, his wishes would have been clear, and the family spared that anguish. Its also worth noting that your health care agent and financial agent dont have to be the same person. Many people choose different individuals based on who is best suited for each role. 4. Reviewing Beneficiary DesignationsOne of the most common and costly estate planning oversights involves outdated beneficiary designations on accounts such as:Life insurance policiesRetirement accounts (IRAs, 401(k)s, 403(b)s)AnnuitiesTransfer-on-death (TOD) or payable-on-death (POD) accountsThese assets bypass your will entirely and go directly to the listed beneficiaries. Thats why keeping them updated is critical.This mistake was made by one of my past clients whose ex-husband remained the listed beneficiary on her 401(k) despite her having remarried years earlier. When she passed away unexpectedly, the entire account legally went to her ex-spouse not her current husband because the plan administrator was bound by the designation on file.To avoid such outcomes, review beneficiary designations every few years and after major life events such as marriage, divorce, or the birth of a child. Your designations, will, and any trust should all work together to reflect a unified plan. 5. Guardianship Designation for Minor ChildrenIf you have children under 18, your estate plan should include a guardianship designation. List the names of those who will care for your children if something happens to you before they reach adulthood. Without a written designation, a court will decide who raises your children and that decision may not reflect your wishes.Its best to name both a primary guardian and an alternate guardian in case your first choice cannot serve. This gives the court clear direction and minimizes family disputes. Choosing a guardian can be emotional, but its one of the most loving steps you can take as a parent. It ensures your children are cared for by someone who shares your values, lifestyle, and parenting philosophy. Why These Estate Planning Basics MatterThese core documents your will, durable powers of attorney, health care directives, and beneficiary designations form the foundation of a strong estate plan. Together, they:Ensure your assets are distributed according to your wishes.Empower trusted individuals to manage your affairs if you cant.Protect your loved ones from unnecessary court involvement and stress.Even if you think you dont have much, estate planning is not just for the wealthy. Its about control, protection, and peace of mind. These documents ensure your voice is heard and your loved ones have clear guidance during difficult times. Updating Your Plan as Life ChangesEstate planning isnt something you do once and forget. Life changes and your plan should evolve with it.You should review your plan every few years or after major events, such as:Marriage or divorceBirth or adoption of a child or grandchildDeath or incapacity of a named agent or beneficiaryMajor financial changes (inheritance, sale of property, retirement)Relocation to another state (since laws vary by location) When You May Need More Advanced PlanningWhile these five basic documents cover most peoples needs, some situations require more advanced tools, such as:Revocable Living Trusts for privacy and probate avoidanceIrrevocable Trusts for asset protection and Medicaid planningSpecial Needs Trusts for beneficiaries with disabilitiesCharitable Trusts or Tax Planning Strategies for large estatesFor instance, a family business owner may need a succession plan to ensure smooth operations if something happens to them. Or a parent with a child who has special needs might establish a trust to provide long-term financial security without jeopardizing government benefits.Working with an experienced estate planning or elder law attorney helps identify which strategies best fit your goals. Common Estate Planning Mistakes to AvoidEven with the best intentions, mistakes happen. Some of the most common include:Failing to sign or properly execute documents.Forgetting to update documents after major life changes.Naming co-agents or co-executors who may not cooperate.Creating a trust but failing to transfer assets into it (funding the trust).Overlooking digital assets such as online accounts, passwords, and cryptocurrency.Not communicating your wishes to your family or agents.These errors can undermine your plans effectiveness. Avoid them by reviewing your documents regularly and seeking professional guidance before making significant updates. Get the Support You Need from Bellomo & AssociatesEstate planning doesnt have to feel overwhelming but it does have to be done right. At Bellomo & Associates, our experienced elder law and estate planning attorneys work closely with individuals and families to create customized plans that protect what matters most.From drafting or updating your last will and testament to developing comprehensive strategies for long-term care, Medicaid, and trusts, our team ensures that every aspect of your plan is thoughtfully designed and legally sound.Whether youre creating your first estate plan or revisiting an existing one, were here to guide you with clarity, compassion, and confidence. Contact Bellomo & Associates today to schedule a consultation. Its never too early or too late to protect your future and give your family lasting peace of mind.

At Bellomo & Associates, one of the biggest surprises we see in families is just how unprepared many older adults are for the reality of long-term care. Its understandable. Most of us want to believe we wont need it, or that Medicare will take care of everything. But the truth is much more complicated. Research shows that about 1 in 7 adults over the age of 65 will eventually need help with daily activities like bathing, dressing, or eating. This kind of support is what we call long-term care. And yet, too many people underestimate their chances of needing it, or assume its something to worry about later. Unfortunately, waiting often leaves families caught off guard when a crisis hits. Common Misconceptions About Long-Term CareRecent surveys show just how unprepared many adults are:Less than half of adults over 50 believe theyll ever need long-term care.Only about one-quarter have named a potential caregiver or put a medical power of attorney in place.Just 11% have purchased long-term care insurance.Nearly two-thirds mistakenly believe that Medicare will pay for permanent nursing home care.That last one is especially concerning. Medicare was never designed to cover long-term custodial care. It may help with short-term skilled nursing care after a hospital stay, but it will not cover permanent nursing home costs. Medicaid, on the other hand, can cover these expensesbut only if you meet very strict income and asset requirements. Without careful planning, families often find themselves needing to spend down what theyve worked so hard to save to qualify.  Why Early Planning MattersWaiting until a health crisis forces the issue leaves families scrambling emotionally, legally, and financially. Planning, on the other hand, gives you options and peace of mind. With the right strategies in place, you can:Protect your home and savings from being lost to care costsQualify for Medicaid without last-minute spend down stressPut the right powers of attorney in place so trusted loved ones can step in if neededHave open, guided conversations with your family about your wishes before a crisis occursHow We Can HelpWe understand how difficult it is to picture needing help with daily life after being independent for so long. Thats why we approach long-term care planning with compassion, honesty, and realistic solutions. Whether its reviewing your options for Medicaid eligibility, setting up powers of attorney, or exploring long-term care insurance, well walk beside you every step of the way. Long-term care planning is one of those things that feels easy to put offuntil its too late. The earlier you prepare, the more control youll have over your care, your finances, and your familys future.

Planning with Purpose: How Smith & Mitchell, LLC Helps Littleton Seniors Protect What Matters MostEmpowering Colorado Seniors Through Knowledge and CareIn the heart of Littleton, Colorado, where the South Platte River winds past scenic trails and mountain views, many seniors are focused on living fully traveling, volunteering, and spending time with loved ones. Yet beneath those golden years lies an important question: Have I protected what truly matters?Thats where Smith & Mitchell, LLC steps in. This respected elder law firm helps Littleton seniors and their families prepare for the future with confidence guiding them through legal, financial, and healthcare planning with compassion and clarity.Elder law isnt just about documents its about dignity, says Michelle Smith, attorney and co-founder of Smith & Mitchell, LLC. Our goal is to help families make informed decisions today that protect them tomorrow.Why Elder Law MattersElder law is a specialized field focused on the unique legal needs of older adults from estate planning and long-term care to guardianship and Medicaid eligibility. These issues can be complex, emotional, and deeply personal.Smith & Mitchell, LLC helps clients understand their rights and options, offering personalized legal solutions that bring peace of mind.Their services include:Estate Planning (Wills, Trusts, and Powers of Attorney)Long-Term Care & Medicaid PlanningGuardianship & ConservatorshipAdvance Directives and Healthcare PlanningAsset Protection StrategiesProbate and Estate AdministrationBy focusing exclusively on elder law and related areas, the firm combines legal expertise with a deep understanding of the aging process and the many decisions families must face along the way.A Trusted Legal Partner in LittletonLittleton is home to more than 45,000 residents, with roughly one in five over age 60. The community prides itself on being safe, scenic, and family-oriented a place where generations live close together and neighbors look out for one another.Smith & Mitchell, LLC reflects that same sense of care. Located conveniently near Downtown Littleton and major roadways, the firm serves clients not only in Littleton but throughout the South Denver metro area, including Highlands Ranch, Englewood, and Centennial.Their attorneys are active in the community volunteering with local nonprofits, speaking at senior centers, and offering educational workshops at the Bemis Public Library and Arapahoe County Senior Services. This community connection strengthens the firms ability to serve clients with empathy and local insight.Estate Planning with Clarity and CompassionFor many families, estate planning feels daunting. Conversations about wills, trusts, and end-of-life wishes can stir emotion and uncertainty. Smith & Mitchell, LLC believes these discussions should be empowering, not overwhelming.Their team takes a step-by-step approach  explaining every option in plain language and tailoring each plan to meet personal goals and family dynamics.Whether a client wants to ensure a smooth transfer of property, protect assets for long-term care, or establish a medical power of attorney, the firm provides the guidance needed to make those decisions confidently.We want every client to walk away understanding exactly how their plan works, says Michelle Smith. When you know your wishes are in writing and your loved ones are protected, thats when real peace of mind begins.Planning for Long-Term CareOne of the biggest challenges facing Colorado seniors is the rising cost of long-term care. Nursing home expenses can exceed $8,000 per month, and without proper planning, those costs can quickly deplete a familys savings.Smith & Mitchell, LLC helps families navigate this reality through Medicaid and asset protection planning. Their attorneys understand the fine details of Colorados Medicaid eligibility rules and can design strategies to preserve assets while securing needed care.This often includes:Structuring trusts to protect the family home or savingsPlanning in advance to avoid costly spend-downsHelping families understand their rights when applying for benefitsThese services are not just financial they are deeply personal, ensuring that seniors can receive quality care without sacrificing a lifetime of hard work.Guardianship and AdvocacyWhen a loved one can no longer make decisions independently, families may need to pursue guardianship or conservatorship. These situations are often emotional, requiring both legal precision and compassion.Smith & Mitchell, LLC helps families navigate these processes with care ensuring the best interests of the senior remain at the forefront. Their team also provides ongoing legal counsel for guardians, ensuring they understand their duties and can fulfill them with confidence and compliance.Education and Empowerment for FamiliesBeyond the legal documents and court filings, Smith & Mitchell, LLC is passionate about education. They believe that informed families make stronger decisions and that prevention is the best form of protection.The firm regularly hosts free educational workshops across the South Denver area, teaching topics like:Five Legal Documents Every Senior Should HaveProtecting Assets from Long-Term Care CostsUnderstanding Probate in ColoradoThese sessions empower seniors and adult children to ask questions, clarify misconceptions, and start important conversations before a crisis occurs.A Personalized, Hands-On ApproachWhat truly sets Smith & Mitchell, LLC apart is their client-centered philosophy. Unlike large firms that treat clients as case numbers, they take the time to build relationships.From the first consultation, clients receive direct attention from an attorney not a paralegal or assistant ensuring every concern is heard and addressed. The firms office environment is warm and welcoming, designed to put families at ease.We see ourselves as guides, explains Michelle Smith. The legal system can feel intimidating, but with the right support, it becomes manageable. Our role is to provide clarity and compassion every step of the way.Why Families Choose Smith & Mitchell, LLCClients throughout Littleton and the greater Denver area trust Smith & Mitchell, LLC for their:Specialized elder law expertise with years of focused experienceClear communication  every question answered, every step explainedTailored strategies that reflect each clients life, not a generic templateLocal involvement and commitment to the Littleton communityIntegrity and compassion that make clients feel like familyFor seniors facing life transitions or adult children helping parents plan ahead Smith & Mitchell, LLC provides a steady, trustworthy hand.Looking Ahead with ConfidenceAging is part of lifes natural journey, and with the right planning, it can be a time of security, gratitude, and peace. At Smith & Mitchell, LLC, the mission is simple: to help Colorado seniors protect their rights, preserve their assets, and plan their futures with dignity.We dont just prepare legal documents, says Michelle Smith. We help people prepare for life with wisdom, care, and confidence.If you or a loved one are seeking trusted elder law guidance in Littleton, youll find it at Smith & Mitchell, LLC where planning for tomorrow begins with care today.FAQs About Smith & Mitchell, LLC1. What areas of law do you specialize in?Smith & Mitchell, LLC focuses on elder law, estate planning, Medicaid planning, and probate services for Colorado seniors and families.2. Do you offer free consultations?Yes, the firm provides initial consultations to discuss your needs and outline possible next steps.3. What makes your firm different from others in the area?Our attorneys focus exclusively on elder law, combining legal expertise with genuine compassion and community involvement.4. Can you help with Medicaid eligibility and asset protection?Absolutely we assist families in creating legal strategies to qualify for care benefits while preserving assets.5. How can I schedule an appointment?Visit their Seniors Blue Book listing to learn more or schedule a consultation with Smith & Mitchell, LLC.