Chayet & Danzo, LLC

Trusts are useful estate planning tools that can accomplish a variety of goals. They can help avoid probate, minimize taxes, and be used to give property to minor or disabled loved ones. Trusts can be created during a persons lifetime (living trusts) or at the persons death (testamentary trusts). Some different types of trusts from both categories are discussed below.Living Trust A person can transfer their assets to a living trust and, as trustee, continue using their assets as they always have. If the trust is revocable, the person can amend or terminate the trust. If they become incapacitated or die, the successor trustee of their choice will continue to manage their assets the same way and will distribute the property remaining in the trust at their death to whomever they choose without the need for court involvement. Tax Planning Trusts Several different types of living trusts provide flexible alternatives for minimizing capital gains and estate taxes, including the charitable remainder trust (CRT), irrevocable life insurance trust (ILIT), qualified personal residence trust (QPRT), grantor retained annuity trust (GRAT), and grantor retained unitrust (GRUT). The specific type of trust involved determines how it is funded, used during the persons lifetime, and distributed at the persons death.Testamentary Trusts A person can create a trust under a will, called a testamentary trust, which does not take effect until they are deceased. A will can contain a marital or family trust for tax planning. A person can also create a testamentary trust for the support and education of a beneficiary who is a minor. Finally, a person can create a testamentary special needs trust (TSNT) for a disabled beneficiary to pay for special needs that are not covered by public benefits programs, such as Medicaid, without affecting the beneficiary's eligibility for programs like Medicaid.Disability Trusts A disability trust is a type of living trust that allows a disabled person under the age of 65 to use her own assets for her special needs, other than food and shelter, and keep public benefits, such as Medicaid and Supplemental Security Income (SSI). The trust can be established by the persons parent, grandparent, legal guardian, or a court. If there are any funds remaining in the trust at the persons death or when they no longer require medical assistance from the state, those funds must be used to pay back the state medical assistance program up to the amount of assistance provided for the person. Similar to a disability trust, a third party discretionary trust (TPDT) allows people to give money to a disabled person without jeopardizing the persons Medicaid or SSI. The difference is that the assets remaining in the TPDT at the beneficiary's death do not have to be paid back to the state medical assistance program. Instead, they are distributed however the person who created the trust desires.Conclusion These are just a few of the trusts that can assist in accomplishing specific estate planning goals, including minimizing taxes, qualifying for public benefits, or avoiding probate administration. Trust planning can be complex, and an attorney can help you choose the right kind of trust to meet your needs. Marco Chayet is a partner, and Dawn Hewitt is an associate, in the law firm Chayet, Dawson & Danzo, LLC, (303) 355-8500. Their practice emphasizes elder law, guardianships, conservatorships, public benefits, probate, estate planning, and long-term care planning. They can be reached online at www.ColoradoElderLaw.com or by e-mail at Marco@ColoradoElderLaw.com or Dawn@ColoradoElderLaw.com.

An Elder Law Attorneys practice generally encompasses all aspects of planning, counseling, educating, and advocating for the senior or disabled client. Rather than being defined by technical legal distinctions, an Elder Law Attorney is defined by the client to be served. In other words, when an Elder Law Attorney practices Elder Law, we handle a wide range of issues but have a specific type of client - seniors, incapacitated adults, or people with disabilities and their families, friends or trusted advisors. Generally an Elder Law Attorney follows a more holistic approach in their practice in handling general estate planning issues and we will, for example, counsel clients about planning for incapacity with alternative decision-making documents. Elder Law Attorneys also assist the client in planning for possible long-term care needs, including nursing home care and Medicaid. Locating the appropriate type of care, coordinating private and public resources to finance the cost of care, and working to ensure the client's right to quality care, are all just a small part of an Elder Law Attorneys practice. The needs of the elder law client depend on moving beyond conventional legal work to offering practical assistance. The following is a partial list of Elder Law practice areas:Guardianships and Conservatorships. We provide counsel to guardians and conservators and we also represent individuals who are objecting to the establishment or continuation of a guardianship and conservatorship.Medicaid, Medicare, Social Security, and Veterans Benefits. We assist clients with navigating the complexities of the various government benefit programs available to our clients.Long-Term Care Planning. We advise on accessing resources for your needs arising out of a disability, incapacity or advancing age to help families or individuals prepare for the future.Estate Planning. We help clients plan for the future and that of their family through preparing estate planning instruments. These include wills, trusts, durable powers of attorney, medical powers of attorney, and living wills.Estate, Probate and Trust Litigation and Administration. We assist by providing counsel and representation to the personal representatives, trustees, heirs, and beneficiaries of an estate during the normal course of administration and probate litigation. Representation of Fiduciaries. The roles of agent, conservator, guardian, personal representative, and trustee have tremendous duties and often require legal representation to complete transactions, interpret documents, and deal with creditors and beneficiaries. Peace of mind can be achieved through proper elder law planning before a crisis presents itself to you or your loved one. Marco Chayet is an Elder Law attorney with the office of Chayet & Danzo, LLC, and the past Chair of the Elder Law Section of the Colorado Bar Association. Marco can be reached at 303-355-8500 or Marco@ColoradoElderLaw.com and www.ColoradoElderLaw.com.

Society often conditions us to believe that estate planning is just something senior citizens do. Thats definitely a misconception. Every adult, no matter whether they just turned 18 years of age or 80 years of age, should take part in this process. It involves much more than drafting a will.While there are some documents that everyone should have in their estate planning arsenal, others are specific to an individual's life stage. Do you know which ones are most appropriate for where you're at in your life?For newly minted adultsYour parents generally have a right to make medical and legal decisions on your behalf up until your 18th birthday. Once you reach the age of majority, you'll have to sign a health care power of attorney if you wish for your parents to make such decisions for you if you become incapacitated.As you start your careerUpon launching your career, you also need to select the beneficiaries you want to receive any proceeds belonging to your insurance or retirement plan if something unexpected happened to you.When you just got marriedOnce you marry, you may need to update any beneficiary designation forms to your spouse's name. You may also want to draft a joint tenancy with rights of survivorship to ensure that your property would seamlessly transfer to your spouse if something happened to you.When you have a childNew parents should take time soon after the birth of their baby to name a guardian that would be able to step in and care for their child if they couldn't do so themselves. New parents can also benefit from funding a trust to provide for their child's financial needs if they aren't present to raise them.Many people don't like to engage in estate planning because it makes them anxious or sad. Having a plan in place, however, ensures that your loved ones will be taken care of once you're gone. It should give you some reassurance in knowing that would be the case.

Too often, individuals do not plan for illness or incapacity and have not executed proper medical or financial directives such as a durable medical power of attorney or a durable financial power of attorney.A power of attorney is a document that is executed by a competent person which gives a nominated agent the authority to manage all or some of a persons medical or financial affairs. A power of attorney is durable if it is able to be used when that person no longer has the capacity to make a financial or medical decision. In the absence of planning, and when the individual is too ill or no longer competent to name an agent to help manage financial and medical affairs, court intervention such as a guardianship or a conservatorship is often necessary. Other times when a guardianship or conservatorship may be necessary include when an individual never had or formed the ability to name a decision-maker for them, where there are conflicts between nominated decision makers, when there are concerns that an agent for someone is inappropriately influencing the incapacitated person, or in the case of a true emergency where a court appointed guardian or conservator is the only way to get a decision made.Guardianships and conservatorships for adults are established through a Colorado probate court for those incapacitated people who need a representative to assist them in making a decision. An incapacitated person in Colorado is defined as an individual who is unable to effectively receive or evaluate information or make or communicate decisions to such an extent that the individual lacks the ability to satisfy essential requirements for physical health, safety, or self-care even with appropriate and reasonably available technological assistance.Guardianships and conservatorships can generally be avoided if you or your loved one has executed a good estate plan. Remember the authority to make decisions for an incapacitated person must be given before that person becomes incapacitated. A basic estate plan should include a will or a trust, a durable medical power of attorney and a durable financial power of attorney. With an increase in the aging population and advances in medical technology, people are living longer. Therefore, it is likely that you or your loved one will face a period of incapacity. Planning for your incapacity is just as important as planning for the distribution of your estate upon your death and a basic estate plan could help to avoid the expense and time of a guardianship or conservatorship proceeding.Editors Note: This article was written & submitted by Marco D. Chayet . Mr. Chayet is a partner with Chayet & Danzo, LLC. We are elder law attorneys who concentrate our practice on complex probate, trust and estate litigation and estate planning. Mr. Chayet can be contacted at 303-355-8500 or Marco@ColoradoElderLaw.com

Agreeing to serve as the executor of an estate is like taking on another part-time job in addition to whatever work you do and your responsibilities for your family. The testator whose estate you handle will likely have made arrangements to compensate you with some property from the estate, but such reimbursements are often a pittance compared to the amount of work involved.When you take on the responsibility of carrying out someone else's estate plan, you take on some risk as well. There are a few important steps you can take to minimize your financial and legal vulnerability as an executor.Secure and inventory property as soon as is reasonably possibleWhen someone dies, family members may try to take certain assets out of the home before estate administration begins. Jewelry, deeds and family heirlooms are all at risk of misappropriation before you even begin your job.To avoid accusations that you took any property and to protect as many assets as possible for the beneficiaries of the estate, you should secure the property and inventory it as soon as you have the authority to take such actions.Handle all the financial liabilities before handing out propertyOne of the biggest risks an executor has is personal accountability for certain unpaid taxes and debts. You don't have to repay everything that the deceased individual would not have repaid with their own assets.However, any property that you distribute before taking care of outstanding financial responsibilities could be held against you later.Document everything that you doDid you call the electrical company and get the bill put in the name of the estates trust? Keep a note about that. Did you pay the mortgage for the month? You want to retain the statement and voided checks that prove you have handled financial responsibilities for the estate.It's also crucial to maintain records about any assets to distribute, both to creditors and to beneficiaries or family members. Having each family member sign a receipt or documents affirming that they received specific property will protect you from claims that you didnt give people their inheritance or otherwise mismanaged the assets in an estate. The more documentation you have about the actions you take, the easier it will be for you to push back against claims of incompetence or misconduct.Learning about the risks involved in estate administration can protect you from mistakes that could cost you money or your role as executor.

A power of attorney document, if drafted and used properly, can prevent the need for the court system to become involved in your medical and/or financial affairs. Executing power of attorney documents should be done well in advance of when one may be needed.While there are resources online in and in stores where forms can be purchased, when one is simply plugging a few names and details into a form, you have little control over what that document does, and you might not even understand what it says. Creating your own power of attorney document that is not a form and using specific terms offers you far more protection.The scope of the power of attorney can be broad or it can be very narrow. It can also be for specific for specific accounts and/or specific transactions and purposes. If there is a concern about someone abusing the power of attorney document, the more detailed and restrictive your terms are, the harder it will be for someone to misuse the authority granted to them in a power of attorney for financial gain.Talking about your assets and what protection you need from a power of attorney with a lawyer can help you create documents well-suited for your needs. While there is more cost involved up front, the end product is something that protects you and your interests without leaving you vulnerable the way that broadly worded documents might.Editor's Note: This article was submitted by Tamara E. Trujillo, Esq and Marco D. Chayet, Esq. Tamara is the Senior Managing Associate Attorney at Chayet & Danzo, LLC and the 2020-2021 Chair of the Elder Law Section for the Colorado Bar Association. Marco isthe founder of the law firm Chayet & Danzo, LLC, and the Public Administrator for the 18th Judicial District. They can be reached at 303-355-8500 and by email at Marco@ColoradoElderLaw.com and Tamara@ColoradoElderlaw.com.This is a brief overview of the topic and should not be considered legal advice

For Elder Law Planning Every 70 seconds someone in the United States develops Alzheimer's. A report entitled 2009 Alzheimer's Disease Facts and Figures indicates that an estimated 5.1 million Americans over 65 have Alzheimer's. The report goes on to indicate that about 2.7 million people over age 85 have the disease, but by the time the Baby Boomers reach 85 in 2031, an estimated 3.5 million boomers that age and older will have Alzheimer's. In people over age 65, Alzheimer's and dementia-related deaths are the fifth leading cause of death for people in the USA. And while deaths from heart disease, stroke and breast and prostate cancers dropped from 2000-2006, deaths from Alzheimer's disease increased by 47.1%.The statistics in this timely report are stunning. Individuals and their families who face a diagnosis of Alzheimer's will quickly become overwhelmed with the legal, medical and financial requirements and realities of coping with this debilitating disease. The emotional effect of this disease is not just relegated to the client who is diagnosed but is often felt more deeply by surrounding family and friends.The work of an elder law attorney encompasses all aspects of planning, counseling, educating and advocating for the senior or disabled client, either directly, or with their family, friends or trusted professionals. More specifically, elder law attorneys will assist you and your loved ones with many different issues related to estate planning, incapacity planning, disability planning, long-term care planning and public and private benefits. This includes the areas of guardianship, conservatorship, probate, Medicaid, Medicare, Social Security, Veterans Benefits, Special Needs Trusts and estate and trust administration. An elder law attorney can also work with you if you are a fiduciary and need guidance and support in making decisions for a loved one when they cannot make a decision for themselves. You are a fiduciary if you are acting as an agent under medical power of attorney, financial power of attorney, guardian, conservator, trustee, executor or personal representative.With the average cost of nursing home care in Metro Denver reaching over $85,000 per year for Alzheimer patients, the time for you and your loved ones to consult with an elder law attorney to make sure your legal affairs are in order is now. Peace of mind can be achieved through proper elder law planning before a crisis presents itself to you or your loved one.As reported in USA Today March 24, 2009.Editors Note: This article was submitted by Marco Chayet, an Elder Law attorney with the office of Chayet & Danzo, LLC, and the past Chair of the Elder Law Section of the Colorado Bar Association. Marco can be reached at 303-355-8500 or Marco@ColoradoElderLaw.com and www.ColoradoElderLaw.com

In 2022, and after living through the pandemic, everyone needs an estate plan, it doesnt matter what your socio-economic circumstances are.  A simple estate plan will typically contain at least three documents. This will generally include a durable medical power of attorney and a durable financial power of attorney. The other document typically found is a way to pass your property upon death such as a will. However, there are times when a trust might be an option in your estate planning instead of or in addition to a will. So why should you consider a trust? Trusts are useful estate planning tools that can accomplish a variety of goals. They can help avoid probate, minimize taxes, and be used to give property to minor or disabled loved ones. Trusts can be created during a person's lifetime (Living Trusts) or at the person's death (Testamentary Trusts). Some different types of Trusts from both categories are discussed below.Living TrustA person can transfer their assets to a Living Trust and, as trustee, continue using their assets as they always have.Tax Planning TrustsSeveral different types of Living Trusts provide flexible alternatives for minimizing capital gains and estate taxes, including the Charitable Remainder Trust, Irrevocable Life Insurance Trust, Qualified Personal Residence Trust, Grantor Retained Annuity Trust, and Grantor Retained Unitrust.Testamentary TrustsA person can create a Trust under a Will, called a Testamentary Trust, which does not take effect until they are deceased.Disability Trusts (also known as Special Needs Trusts)A Disability Trust is a type of Living Trust that allows a disabled person under the age of 65 to use her own assets for her special needs, other than food and shelter, and keep public benefits, such as Medicaid and Supplemental Security Income (SSI).3 reasons you may need a trust as part of your estate plan Are you concerned about protecting a gift from creditors or litigation?Does a loved one need nursing home care or Medicaid eligibility?Do you want to provide for children, grandchildren or charitable organizations?The types of assets you own is another important consideration. Here are three typical reasons you might need a trust.            1. A loved one cannot be trusted with a large gift or has special needs            If you have concerns that a child does not have the financial skills to manage a gift or the loved one receives government benefits.                       2. You want to transfer complex assets in a thoughtful manner            Trusts can be effective for keeping a vacation home or a closely held business in the family. For large charitable donations, a trust allows you to leave a vision for how you would like the gift used.            3. Limiting the potential for relationship-damaging fights is important            When you have worked hard and been successful, a trust may be able to limit conflict and the legal fees associated with litigation. Editors Note: This article was submitted by Marco D. Chayet, Esq.Marco is a partner in the law firm Chayet & Danzo, LLC, and the Public Administrator for the 18th Judicial District; he may be reached at 303-355- or 866-873-6596 and by email at Marco@ColoradoElderLaw.com This is a brief overview of the topic and should not be considered legal advice.

You can use many different types of trusts when doing your estate planning. One is an incentive trust. It is not nearly as common as other types of trusts, but does it bear considering?An incentive trust essentially works by connecting an inheritance to a specific goal. For instance, a person may only get their inheritance if they graduate from college or if they maintain a full-time job. You can help to guide the course of their life, and the money in the trust gives them financial incentive to do what you have deemed wise.The downsides of such a trustThis certainly can work, but there are some downsides to consider. One is just that it's hard to be specific enough to address everything that may happen.For example, say that you want your heir to hold down a job. Seems simple, right? But what if your heir wants to leave their job to volunteer the medical field in a third-world country? They want to save lives and give back which you would have supported but does the trust now mean they have to give up their inheritance to do so? Or, what if they get sick, become disabled, go back to school or have to help a sick or injured loved one?Another downside is that your heir may resent the fact that the trust forces them to live a certain way. Even if they do it, is a legacy of resentment one you want to leave?Making your estate planIf you're considering trusts and other tools for your estate plan, carefully go over your legal options to determine what will be best for your family.

In 2024, everyone needs an estate plan, regardless of their socio-economic circumstances.  A simple estate plan will typically contain at least three documents; a durable medical power of attorney and a durable financial power of attorney. These documents give the authority to a person of your choice, to speak on your behalf on your medical and financial issues if youre not able to make necessary decisions due to health issues.  The third document, a will, is a way to pass your property upon death to whom you wish.  A trust might be an option in your estate planning instead of or in addition to a will. Trusts are useful estate planning tools that can accomplish a variety of goals. They can help avoid probate, minimize taxes, and be used to give property to minor or disabled loved ones. Trusts can be created during a person's lifetime (Living Trusts) or at the person's death (Testamentary Trusts). Some different types of Trusts from both categories are: Living TrustA person can transfer their assets to a Living Trust and as a trustee continue using their assets as needed during their lifetime.Tax Planning TrustsSeveral different types of Living Trusts provide flexible alternatives for minimizing capital gains and estate taxes, including the Charitable Remainder Trust, Irrevocable Life Insurance Trust, Qualified Personal Residence Trust, Grantor Retained Annuity Trust, and Grantor Retained Unitrust. Testamentary TrustsA person can create a Trust under a Will, called a Testamentary Trust, which does not take effect until they are deceased. Disability Trusts (also known as Special Needs Trusts)A Disability Trust is a type of Living Trust that allows a disabled person under the age of 65 to use his/her own assets, other than for food and shelter, for their special needs and keep public benefits, such as Medicaid and Supplemental Security Income (SSI). 3 reasons you may need a trust as part of your estate plan  Are you concerned about protecting a gift from creditors or litigation? Does a loved one need nursing home care or Medicaid eligibility? Do you want to provide for children, grandchildren or charitable organizations? The types of assets you own is another important consideration. Three typical reasons you might need a trust:            1. A loved one cannot be trusted with a large financial gift or has special needsIf you have concerns that a child does not have the financial skills to manage a financial gift, or the loved one receives government benefits.                   2. You want to transfer complex assets in a thoughtful manner            Trusts can be effective for keeping a vacation home or a closely held business in the family. For large charitable donations, a trust allows you to leave a vision for how you would like the gift used.            3. Limiting the potential for relationship-damaging fights is important            When you have worked hard and been successful, a trust may be able to limit conflict, and the legal fees associated with litigation. Editors Note: This article was submitted by Marco D. Chayet, Esq. Marco is a partner in the law firm Chayet & Danzo, LLC, and the Public Administrator for the 18th Judicial District; he may be reached at 303-355-8500 or by email at Marco@ColoradoElderLaw.com   This is a brief overview of the topic and should not be considered legal advice.

Too often, individuals do not plan for illness or incapacity and have not executed proper medical or financial directives such as a durable medical power of attorney or a durable financial power of attorney. A power of attorney is a document that is executed by a competent person which gives a nominated agent the authority to manage all or some of a persons medical or financial affairs. A power of attorney is durable if it is able to be used when that person no longer has the capacity to make a financial or medical decision. In the absence of planning, and when the individual is too ill or no longer competent to name an agent to help manage financial and medical affairs, court intervention such as a guardianship or a conservatorship is often necessary . Other times when a guardianship or conservatorship may be necessary include when an individual never had or formed the ability to name a decision-maker for them, where there are conflicts between nominated decision makers, when there are concerns that an agent for someone is inappropriately influencing the incapacitated person, or in the case of a true emergency where a court appointed guardian or conservator is the only way to get a decision made. Guardianships and conservatorships for adults are established through a Colorado probate court for those incapacitated people who need a representative to assist them in making a decision. An incapacitated person in Colorado is defined as an individual who is unable to effectively receive or evaluate information or make or communicate decisions to such an extent that the individual lacks the ability to satisfy essential requirements for physical health, safety, or self-care even with appropriate and reasonably available technological assistance. Guardianships and conservatorships can generally be avoided if you or your loved one has executed a good estate plan. Remember the authority to make decisions for an incapacitated person must be given before that person becomes incapacitated. A basic estate plan should include a will or a trust, a durable medical power of attorney and a durable financial power of attorney. With an increase in the aging population and advances in medical technology, people are living longer. Therefore, it is likely that you or your loved one will face a period of incapacity. Planning for your incapacity is just as important as planning for the distribution of your estate upon your death and a basic estate plan could help to avoid the expense and time of a guardianship or conservatorship proceeding.Editors Note: This article was written & submitted by by Marco D. Chayet . Mr. Chayet is a partner with CHAYET & DANZO LLC. We are elder law attorneys who concentrate our practice on complex probate, trust and estate litigation and estate planning .. Mr. Chayet can be contacted at 303-355-8500 or Marco@ColoradoElderLaw.com

Several different types of trusts can be used to enhance the quality of life for an individual with special needs who receives public assistance, such as Supplemental Security Income (SSI) and Medicaid. Some examples of how funds in a properly created special needs trusts can be used are for education expenses, travel, and entertainment. A disability trust is created for a trust beneficiary under the age of 65 who is disabled under Social Security's criteria and is funded with the beneficiary's own assets. The disability trust is established by the beneficiary's parent, grandparent, or legal guardian, or by a court and must contain a provision to reimburse the state medical assistance program for benefits paid during the beneficiary's lifetime. A pooled trust is available to Medicaid recipients who are over or under the age of 65 and are disabled. It is funded with the beneficiary's own assets. The trust is established by the individual, a parent, grandparent, or legal guardian, or by the court. The pooled trust is comprised of separate accounts for many disabled individuals, which are pooled for investment and management purposes. The trustee of a pooled trust must be a non-profit organization. Funds remaining in the individual's account at his death must be used to reimburse the state Medicaid agency up to the amount of medical assistance provided on the individual's behalf, to the extent that those funds are not retained by the pooled trust. A third-party discretionary trust (TPDT) is commonly established by a relative, such as a parent or grandparent. A TPDT does not contain a payback provision to reimburse the state Medicaid agency. There are no restrictions on the beneficiary's age. A testamentary special needs trust (TSNT) can be created by anyone under their will. This trust is generally used by parents of a special needs child. A TSNT can also be used by the spouse of a disabled person who receives certain types of Medicaid benefits. However, there are limitations on the amount of the spouses' assets that can be used to fund the trust. An income trust is necessary for an individual who requires long-term care and whose income exceeds 300% of the SSI limit. For 2010, the 300% limit is $2,022. If the individual resides in a long-term care facility, most of his income, minus a small personal needs allowance, will be paid to the facility each month as his patient payment. There a several different ways of creating a special needs trust to enhance the quality of life for the trust beneficiary. You should work closely with an elder law attorney who is experienced with these types of trusts as well as the different public benefits programs to decide which trust works best for your situation.Marco Chayet is a partner, and Dawn Hewitt is an associate, in the law firm Chayet & Danzo, LLC, (303) 355-8500. Their practice emphasizes elder law, guardianships, conservatorships, public benefits, probate, estate planning, and long-term care planning. They can be reached online at www.ColoradoElderLaw.com or by e-mail at Marco@ColoradoElderLaw.com or Dawn@ColoradoElderLaw.com.