Estate planning in Colorado can be confusing—especially if you're trying to do it yourself. Whether you’ve downloaded a form or haven’t updated your will in decades, here are 10 common mistakes that could cost your family time and money, and how Lewis Osterman in Denver can help you avoid them.
1. No Estate Plan
In Colorado, dying without a will (intestate) means your assets are divided according to state statutes, not your wishes.
➡️ Solution: Draft a will or trust with an attorney to control how your estate is handled.
2. Improper Use of Online Forms
DIY estate plans often omit Colorado-specific legal requirements, like signature formalities or spousal elective share rules.
➡️ Fix: Work with an attorney who knows Colorado law.
3. Outdated Beneficiary Designations
Your will doesn’t override life insurance, IRAs, or transfer-on-death accounts. Failing to update these is a top cause of accidental disinheritance.
➡️ Review Annually: Especially after marriage, divorce, or a birth.
4. Unfunded Trusts
In Colorado, creating a revocable living trust won’t avoid probate unless assets are properly titled into the trust.
➡️ Fix: Retitle your home, bank accounts, and investment assets with guidance from your attorney.
5. Poor Executor or Trustee Choices
Choosing the wrong person—or co-trustees who don’t get along—can delay administration and spark conflict.
➡️ Tip: Consider maturity, trustworthiness, and location. Professional fiduciaries are also an option.
6. Ignoring Digital Assets
Colorado law recognizes fiduciary access to digital accounts—but only with proper authorization.
➡️ Include Access: Specify your wishes and provide login details securely.
7. Tax Oversights
Colorado doesn't have an estate tax, but federal estate taxes and capital gains can still apply.
➡️ Plan Strategically: Use gifting strategies or a step-up in basis to reduce tax liability.
8. Leaving Out Contingencies
Naming only one heir or failing to address what happens if someone predeceases you can derail your plan.
➡️ Solution: Include backups for heirs, executors, and trustees.
9. No Planning for Incapacity
Without powers of attorney, loved ones must seek court-appointed guardianship or conservatorship.
➡️ Fix: Include Durable Power of Attorney and Medical Durable Power of Attorney in your plan.
10. Inaccessible Documents
Your family may never find your documents in time if they’re locked away or undisclosed.
➡️ Tip: Tell your executor where documents are stored and give copies to key people.
Ready to Review or Start Your Plan?
Let Lewis Osterman help you craft a personalized, legally sound estate plan
that ensures your wishes are honored and your loved ones are protected.
