Chayet & Danzo, LLC

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 1-866-873-6596 or Marco@ColoradoElderLaw.com

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. 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 TrustsSeveral 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 person's lifetime, and distributed at the person's death.Testamentary TrustsA 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, without affecting the beneficiary's eligibility for programs like Medicaid.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). The Trust can be established by the person's parent, grandparent, legal guardian, or a court. If there are any funds remaining in the Trust at the person's 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.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.Editors Note: This article was submitted by Marco D. Chayet, Esq.Marco is a partner and elder law attorney with Chayet & Danzo, LLC, and may be reached at 303-355-8500 or by email at Marco@ColoradoElderLaw.com

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. 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 TrustsSeveral 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 person's lifetime, and distributed at the person's death.Testamentary TrustsA 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, without affecting the beneficiary's eligibility for programs like Medicaid.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). The Trust can be established by the person's parent, grandparent, legal guardian, or a court. If there are any funds remaining in the Trust at the person's 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.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.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 303-355-8500or 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.To Learn More Click :https://www.seniorsbluebook.com/senior-resources/chayet-danzo-llc