Creating an estate plan is important for everyone, regardless of family circumstances. Yet, some estate plans are certainly more straightforward than others due to one’s family situation. If you don’t have close loved ones—such as children, a spouse or nearby relatives—you might wonder what will happen to your assets or who will make decisions for you if you become unable to do so. Thankfully, in Colorado, having a well-thought-out estate plan should allow you to retain control over these matters and better ensure that your wishes are respected.
One of the most important reasons to create an estate plan when you don’t have close family is to avoid having the state decide what happens to your estate. If you pass away without a will, Colorado’s intestacy laws will determine who inherits your assets. In the absence of close family, this could mean your assets and sentimental property ends up with distant relatives you may not know or with whom you had no relationship. Creating a will or trust gives you the power to choose where your money and property go, whether to friends, charities or institutions that matter to you.
Other important considerations
Another important reason to craft an estate plan is that doing so will allow you to name someone to make decisions on your behalf if you become incapacitated. A durable power of attorney allows you to appoint a trusted individual to manage your financial affairs, while a medical power of attorney gives someone the authority to make healthcare decisions for you. If you don’t have these documents in place and become unable to make decisions for yourself, the court may appoint a guardian or conservator—possibly someone you wouldn’t have chosen.
You should also consider who will handle your estate when you pass away. In your will, you can name a personal representative (also known as an executor) to carry out your instructions. This can be a trusted friend, a professional fiduciary or even an attorney. Without a named representative, the court will appoint someone, which could delay the process and potentially lead to outcomes you wouldn’t have intended.
Estate planning is about making informed choices now so that your values and preferences are honored later. If you don’t have close loved ones, working with a skilled legal team can help you to structure a plan that meets your needs and reflects your wishes, whatever they may be.