Schunk & Dunn, LLC

Estate Planning FAQ

Frequently asked questions on estate planning, including wills, trusts, living wills, and powers of attorney:

What does a will do? Do I need a will?
Will I owe taxes when I pass away? What is the "death tax"?
I have heard that probate is bad. What is probate, and should I avoid it?
What are "living wills" and "medical powers of attorney"?

Wills, trusts, powers of attorney, probate, guardians for children, and the "death tax."

DO I NEED A WILL? A will allows you to control numerous things after you pass away, such as who will care for children under 18, who will inherit your property, and will allow you to take advantage of techniques to minimize estate taxes. If any of these things are important to you, you need to talk with an attorney about having a will drafted and other estate planning techniques. Return to questions.

ESTATE TAXES: "Death tax" is a term some politicians use to refer to state and federal estate taxes, which only affect Americans with substantial assets at their death. In addition, the amount allowed to pass tax-free (for federal estate tax) is increasing through the year 2009, and the federal estate tax regime may be repealed by the end of the decade. While that is the current state of the law, Congress is likely to change the regime over the next several years, and you should not rely upon a "death tax" repeal as an estate-planning tool. Consult with an attorney to decide what makes the most sense for your particular situation. Return to questions.

SHOULD I AVOID PROBATE? Probate is simply the process through which a court will supervise the administration of your estate and distribute your property. Many promoters and salesmen of "living trusts" will claim that not only will you avoid probate with a living trust, but also a living trust will eliminate your taxes. These claims are not really true, and if a living trust is not drafted properly, you will still have a probate. A living trust can be a very useful estate planning tool, but is not a cure-all and will do nothing to reduce estate taxes that cannot be done with a will. In addition, a living trust will cause many up-front expenses that are not required with other estate plans. Consult with an attorney to decide whether you should have a living trust and how probate may affect your estate and heirs. Return to questions.

LIVING WILLS & MEDICAL POWERS OF ATTORNEY: A "living will" is a document used to express your wishes about what happens if you are incapable of making (due to incapacity) your own "end-of-life" decision, for example, whether to refuse life-sustaining treatments, like feeding tubes and breathing machines. However, if it is your preference not to have life-sustaining treatments like these, the living will is used only when medical professionals agree that there is no realistic hope of recovery. In addition, a living will may express that you DO wish to have life-sustaining treatments; it is not limited to expressing only a refusal of life-sustaining treatments. Making a living will is taking the opportunity to express your desires in advance about end-of-life decisions, rather than putting those emotional and difficult decisions in the hands of loved ones. A "medical power of attorney" is a grant of authority (usually to a family member) to make medical decisions on your behalf when you are incapable of doing so. These documents are frequently, but not always, created together. Return to questions.

For more information or to schedule an appointment at our law firm, please contact us.

Law Offices of Schunk & Dunn, LLC
Attorneys and Counselors at Law
808 South Public Road, Suite 202
Lafayette, CO 80026
Telephone: (303) 939-9790
Facsimile: (303) 939-9792

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The Law Offices of Schunk & Dunn, LLC represent clients throughout Colorado, including Boulder, Longmont, Broomfield, Louisville, Aurora, Lafayette, Denver, Nederland, Niwot, Boulder County, Arapahoe County, Jefferson County, Denver City County, La Plata County, Grand County, El Paso County, Pueblo County, Denver County, the University of Colorado, and Buckley Air Force Base.

Disclaimer: Please be advised that any and all information provided on this website is general information and  for discussion purposes only.  Said general information is not provided as advice for a specific matter, nor does its publication create an attorney-client relationship or solicitation for and acceptance of same.   An attorney-client relationship is only formed with our firm upon payment of a retainer and a signed engagement letter.  For legal advice on a specific matter in Colorado, please consult an attorney.