For Colorado residents, the real question is not whether Section 530A accounts are interesting. It is whether they belong in a serious estate plan. In many cases, the answer will be yes, but only as one part of a broader strategy. These accounts do not replace 529 plans, trusts, or carefully drafted guardianship provisions. Instead, they create a new planning layer that may benefit families who want to combine tax efficiency, disciplined investing, and long-term support for children.

What Is a Section 530A Account?

A Section 530A account is essentially a child-owned custodial investment account created under federal tax law. Contributions cannot begin before July 4, 2026. The account is available for eligible children under age 18, and the proposed regulations and IRS guidance contemplate a formal election process to establish the account. For children who qualify for the federal pilot program, Treasury will contribute $1,000 to the account if the child is a U.S. citizen born between January 1, 2025 and December 31, 2028 and the required election is made.

The account’s investment menu is intentionally narrow. Section 530A accounts are designed around low-cost index funds and ETFs, with strict fee limitations. That matters because the statute is plainly trying to encourage long-term compounding rather than speculative or high-fee investing. For lawyers and financially sophisticated clients, that design choice makes the accounts easier to evaluate. They are not meant to be custom portfolio vehicles. They are meant to be straightforward, relatively disciplined savings tools.

Why These Accounts Matter in Estate Planning

Most families already know the broad estate-planning goals for children. They want money available for education, health care, early adulthood, and meaningful opportunities. They usually do not want a child receiving unrestricted access to a large sum at eighteen or twenty-one. That tension is where Section 530A becomes useful.

A Section 530A account can serve as a smaller, tax-favored bucket within a larger estate plan. It is not the place for substantial family wealth transfers. It is the place for a measured amount of annual funding that may grow over time and support a child’s future. In that sense, it fits especially well in Colorado estate plans that already use revocable trusts, standalone trusts for descendants, or 529 education savings plans.

For example, a family may decide that a trust should hold the larger inheritance because a trust offers better control, creditor protection, and flexibility. At the same time, that same family may fund a Section 530A account each year because it offers a simple structure, tax-favored growth, and a separate source of support for education or other statutorily favored uses. That is often the right way to think about it: not as a replacement, but as a complementary account.

The Employer Contribution Feature Changes the Conversation

What makes Section 530A especially interesting is the employer piece. Under current guidance, employers may contribute up to $2,500 annually through a compliant employer-sponsored program, and those contributions generally may be excluded from the employee’s income, subject to statutory requirements. Total annual contributions to the child’s account are capped at $5,000, with indexing after 2027. Employers that want to offer this benefit must adopt a formal program and satisfy notice and nondiscrimination requirements. These arrangements are not treated as ERISA plans, which reduces some administrative burden, but they still require real compliance work.

This employer feature gives Section 530A a practical edge that most traditional children’s planning vehicles do not have. A 529 plan can be powerful, but it does not come with the same employer-funding mechanism. A trust offers superior control, but employers are not making annual trust contributions for workers’ children. For Colorado families employed by larger firms, professional practices, or companies with competitive benefits strategies, this may become a meaningful planning opportunity.

It also means local attorneys, CPAs, and financial advisors should start paying attention now. Families will soon ask whether an employer-funded Section 530A program should change how they save for children. The answer will depend on the overall plan, but the question is coming.

How Section 530A Compares With Other Planning Tools

The most obvious comparison is the 529 plan. In most Colorado families, the 529 plan will remain the primary education savings vehicle because it allows much larger contributions and is specifically built for education planning. Section 530A is more limited. Its contribution cap is lower, and its rules are more restrictive. But Section 530A may still make sense where a family wants to capture employer dollars or build another modest, tax-favored account for the child.

Another comparison is the UTMA or UGMA account. Those accounts are simple, but they can be blunt instruments. The child gains control at the age fixed by state law, and the account does not carry the same statutory investment and tax structure that Section 530A offers. By contrast, Section 530A appears designed to impose more discipline from the start.

Trusts remain in a separate category. If the family’s goal is long-term control, creditor protection, divorce protection, or generation-skipping planning, a trust is still the better tool. A trust can hold significant assets and can be drafted around family-specific values. Section 530A cannot do that. It is a narrower statutory account, not a substitute for careful trust planning.

What Colorado Families Should Watch Closely

Families in Colorado should focus on four issues.

First, they should watch timing. These accounts cannot accept contributions before July 4, 2026, and the election and pilot-program rules matter. Families with children born in the relevant window should be especially attentive to rollout details.

Second, they should watch coordination. If a family already uses 529 plans, trusts, or custodial accounts, Section 530A should be integrated thoughtfully rather than added casually. The right funding order may differ from one family to the next.

Third, they should watch control. Even a useful account for a child should fit into the larger guardianship and estate-planning picture. Parents still need wills, guardian nominations, powers of attorney, and trusts where appropriate.

Fourth, they should watch legal development. The statute is new, and proposed regulations are still shaping the administrative framework. Lawyers who advise in this area should expect additional refinement before and after launch.

Where This Fits in a Higher-End Colorado Plan

For higher-net-worth or more planning-oriented Colorado families, the best use of Section 530A may be surprisingly modest. It may function as a first layer of disciplined funding for a child, especially where employer contributions are available, while the family’s main wealth-transfer objectives remain in trusts. That approach preserves flexibility. It allows parents or grandparents to use a statutory children’s account where it makes sense without giving up the protection and control that sophisticated estate planning requires.

That is also why this topic should interest other lawyers. Section 530A is not just a consumer financial product. It is a new variable in estate planning, trust coordination, minor-child planning, and employee-benefit design. Attorneys who understand where it fits and where it does not will be better positioned to advise families well.

A Practical Next Step

The launch date is close enough that families should begin asking questions now rather than in the middle of 2026. If you have children or grandchildren, if your employer may adopt one of these programs, or if your existing estate plan already includes trusts or education planning, now is the right time to review how Section 530A may fit into your overall strategy.

Braverman Law Group, LLC helps Colorado families build estate plans that are thoughtful, current, and tailored to real life. To discuss how Section 530A accounts may work alongside trusts, 529 plans, and guardianship planning, contact Braverman Law Group, LLC at (303) 800-1588 to schedule a consultation.

Start With Objectives, Then Match the Tools

Sophisticated planning begins with a short list of outcomes, not a long list of documents. Most clients want some combination of probate avoidance, control during incapacity, tax efficiency, creditor protection, and smooth administration for a surviving spouse or children. Each goal pushes you toward certain tools and away from others. A revocable trust can deliver continuity and privacy, yet it can also invite needless complexity when a client has modest assets or a simple distribution scheme. A will-only plan can work fine for the right profile, yet it often collapses under the weight of beneficiary designations and joint ownership that operate outside probate. The practical move is to choose a structure, then audit the entire asset map to confirm that the structure actually governs what matters.

Probate Avoidance Is an Asset-Mapping Project

Clients often treat probate as a document problem. In reality, probate exposure is largely a function of title. Attorneys who focus on the mechanics early reduce the risk of later surprises. Colorado’s probate process can be efficient when the estate is straightforward and uncontested, yet many families still prefer to avoid court involvement, delays in access, and public filings. Revocable trusts remain the primary vehicle for that preference, with pour-over wills acting as a safety net rather than the main engine. The overlooked detail is that a trust plan without consistent funding can create a two-track administration, with a trust administration running in parallel with probate for straggler assets. That outcome frustrates families and makes the attorney look disorganized. A disciplined funding and beneficiary review solves most of the problems.

Incapacity Planning Matters More Than Death Planning

​A sophisticated plan treats incapacity as the central operational risk. Health events occur more often than death, and they create immediate access needs. Durable financial powers of attorney, health care powers of attorney, living wills, and HIPAA authorizations should work as a coordinated set. The more meaningful work comes after signing, when the attorney and client verify that the plan will function during a real emergency. That means confirming where originals live, who has copies, how agents can access financial institutions, and whether institutions impose their own forms or notarization requirements. The trust also plays a role here, since a successor trustee can step in without court appointment if the trust defines incapacity and the process for determining it. A plan that ignores these mechanics can force a family to file for guardianship or conservatorship despite “good documents.”

Colorado Tax Planning Requires Pragmatism and Optionality

Higher-level tax planning begins with the admission that the rules change. The best plans build options rather than betting everything on one set of thresholds. For married clients, traditional credit-shelter or family-trust planning can preserve exemptions and protect assets, but it can also create administrative friction when the surviving spouse needs simplicity. Many modern plans solve this by using disclaimer-based planning and trust provisions that allow post-death flexibility. That approach keeps the plan nimble and allows the family, guided by counsel, to decide after death whether to fund a bypass structure, keep assets outright, or use a blend that fits tax exposure, creditor risk, and family dynamics.

For higher-net-worth clients, lifetime gifting, valuation planning for closely held interests, and charitable techniques may be part of the conversation. The key is matching the technique to the client’s tolerance for complexity and ongoing maintenance. A brilliant strategy that requires perfect annual execution often fails in practice. A slightly less aggressive strategy that the client will actually adhere to tends to win out over time.

Trust Design Should Anticipate Administration, Not Just Distribution

Attorneys and fiduciaries know that the distribution scheme is only half the battle. The other half is administration. A trust that reads cleanly at signing can become painful if it creates ambiguous standards, conflicting trustee powers, or unclear accounting expectations. Higher-level drafting anticipates the questions that appear in the first sixty days after death or incapacity. Who has the authority to manage real property? How do you handle digital assets and device access? What is the plan for closely held business interests? Are there clear successor trustee provisions? Does the instrument authorize tax elections and allocate tax burdens in a predictable way?

You also need to plan for interpersonal reality. Blended families, unequal gifts, or family members with addiction or disability issues require careful guardrails. In those cases, trust terms that stage distributions, authorize professional trustee involvement, and provide clear standards can reduce litigation risk and protect beneficiaries from their own vulnerabilities.

The Hidden Risk Is Misalignment Across the Whole Plan

Most estate disputes arise from a mismatch, not from a lack of paperwork. A trust says one thing, a beneficiary form says another, and the family assumes the trust controls. Retirement accounts, life insurance, and transfer-on-death registrations pass by contract. Real estate may pass by joint tenancy. Pay-on-death bank accounts may bypass everything. A higher-level practice treats beneficiary review as core legal work rather than clerical follow-up. The attorney should also verify titling for brokerage accounts, confirm the deed language, and coordinate with financial advisors to ensure the entire transfer system aligns.

The same alignment issue appears in tax planning. A formula bequest in a trust can behave unpredictably when asset values change, when the estate includes large retirement accounts, or when liquidity is tight. Careful drafting and clear funding instructions reduce the risk that a technically correct clause leads to messy administration.

A Practical Checklist for a High-Functioning Plan

This short checklist captures what separates a plan that “exists” from one that works, and keeps the process disciplined without turning it into a spreadsheet exercise.

• Confirm every major asset category and how it transfers at death, including beneficiary designations and title.
• Align fiduciary roles across documents so the named agents and trustees make sense together.
• Build post-death flexibility for married clients, given that tax and family circumstances can change.
• Document a funding plan for trust-based structures, with clear responsibility and follow-through.
• Anticipate administrative friction points, including real estate, digital access, business interests, and liquidity.

This is the work that prevents future disputes and reduces the chance that a family needs emergency court intervention.

Why Attorney-to-Attorney Collaboration Improves Outcomes

Sophisticated estate planning in Colorado often depends on coordination with other professionals. A client’s CPA may see income tax consequences that drive the distribution strategy. A financial advisor may identify beneficiary designations that undermine the plan. A business attorney may help structure succession for an entity interest that the trust will hold. When the estate planning attorney leads that coordination, clients get a plan that is internally consistent and defensible if challenged. That coordination also reduces malpractice exposure, since the record reflects an intentional process rather than a set of disconnected forms.

Contact Braverman Law Group

If you want a plan built for real administration and long-term flexibility, contact Braverman Law Group. Our team supports Boulder Estate Planning Lawyers Serving Colorado with high-level estate planning, probate, and tax-aware strategies designed to hold up under real-world complexity. To get started, contact Braverman Law Group at (303) 800-1588.

Document conflicts tend to fall into predictable categories. A later will conflicts with an earlier will. A trust amendment conflicts with the original trust. A pour-over will conflict with a trust schedule or property list. A beneficiary designation conflicts with a broader plan. Courts rarely treat these situations as free-form equity. Statutory rules, formalities, and evidentiary standards do most of the work.

Colorado Will Revocation Rules

​When two wills conflict, the first question is usually whether one will revoke the other. Colorado recognizes revocation by a later instrument as well as revocation by physical act in the manner permitted by statute. In practice, a newer will that expressly revokes prior wills should simplify the analysis, yet problems arise when the revocation language is missing, vague, or paired with partial changes that do not read as a complete restatement.

Conflicts also arise when the newer document appears to be a codicil in substance, yet was executed as a standalone will, or when a later instrument references an earlier plan incorrectly. In those situations, the revocation inquiry becomes less about labels and more about whether the later writing was intended to replace, supplement, or revoke only certain parts. Execution formalities matter too. If the later instrument fails as a will, the earlier will may remain in place unless other revocation rules apply.

​Revival of a Revoked Will In Colorado

Revival issues appear more often than many planners expect. A person signs a later will, then tears it up during a family dispute, then dies without executing anything new. The family assumes the earlier will “come back.” Colorado law has a specific framework for whether a revoked will is revived, and the analysis often turns on intent and on the circumstances surrounding revocation.

Revival questions also arise when a later will is declared invalid. Families sometimes treat invalidity as automatic revival of the older instrument. Courts tend to treat that assumption cautiously. The result can hinge on whether the evidence shows that the decedent intended the earlier will to operate again after revocation of the later document. That uncertainty should push drafters toward clearer revocation language and cleaner plan updates rather than piecemeal changes.

Conflicting Trust Amendments And Restatements

Trust-based plans add layers. A trust amendment may conflict with the original trust language, with prior amendments, or with a later restatement. The first issue is usually authority and method. If the trust specifies a method for amendment, a document that does not follow it may fail, even if it appears signed and notarized.

Sequencing creates additional trouble. A later amendment might implicitly override earlier terms, yet it may also reference provisions that were changed by an intervening amendment. Corporate trustees and financial institutions tend to demand clear chains of authority. When the paper trail is muddled, administration slows, distributions pause, and conflict becomes more likely.

From a drafting standpoint, a restatement often provides cleaner administration than a stack of amendments, especially when the plan has evolved over the years. Even with a restatement, cross-references to schedules, separate property lists, and beneficiary designations can still create internal inconsistencies that surface only after death or incapacity.

Reformation To Correct Mistakes In Colorado Estate Planning

Colorado law allows courts to reform a governing instrument to conform the text to the transferor’s intent when clear and convincing evidence shows a mistake of fact or law, whether in expression or inducement. That rule matters when a drafting error creates a conflict that the written words alone cannot resolve. Reformation can also matter when a scrivener error flips a percentage, misidentifies a beneficiary, or misstates a legal description.

The clear-and-convincing standard shapes strategy. The stronger the documentary trail, the more realistic the remedy becomes. Drafting files, contemporaneous correspondence, marked drafts, and consistent estate planning patterns can matter more than witness recollection years later. Planning practices that treat file hygiene as optional often leave clients exposed when a mistake appears only after the decedent cannot clarify intent.

A related practical point involves the choice of “fix” when a conflict is discovered during life. Reformation can help after death, yet a clean corrective instrument executed with proper formalities usually provides a more predictable path than litigation over intent. That reality supports periodic plan audits and disciplined update procedures.

Beneficiary Designations That Do Not Match The Plan

Many conflicts are not will versus trust. A retirement account or life insurance designation directs funds to one person, while the will or trust directs the residuary estate elsewhere. In most situations, the designation controls the nonprobate asset, even if the broader plan assumed a different outcome. Families often view that mismatch as unfair or accidental. Courts generally treat it as an asset-transfer mechanism that stands on its own unless there is a legal basis to unwind it.

These mismatches also create professional risk. They can look like drafting failures even when the real issue is a client who later made a change directly with a custodian. The better practice is to integrate beneficiary reviews into the planning process and document

them. Administration teams benefit from checklists that reconcile probate and nonprobate transfers early, before partial distributions make litigation more expensive.

Practical Drafting Lessons For Colorado Wills And Trusts

Conflicts thrive in gaps, not in careful systems. Clean document hierarchy reduces ambiguity. Express revocation language should match the client’s intent and should appear consistently across instruments. Trust amendment procedures should be explicit, easy to follow, and respected in practice. Plan updates should prefer restatements or full will replacements when changes become substantial.

Consistency across the full transfer map is equally important. Asset titling, beneficiary designations, and pour-over mechanics should be reviewed together. A plan that reads perfectly in isolation can still fail if the assets transfer outside it in unintended ways. That reality is not theoretical. It is one of the most common reasons families end up in avoidable disputes.

Contact A Colorado Wills Trusts, and Estates Attorney

Conflicting estate planning documents can create uncertainty about which instrument governs and how administration should proceed. Braverman Law Group offers a Free Consultation. Call (303) 800-1588 to discuss your situation.

What Portability Actually Preserves

Portability lets the survivor claim the deceased spouse’s unused estate-tax exemption (often called the DSUE amount) so that the survivor can shelter more at their own death. To capture DSUE, the personal representative files a timely estate tax return for the deceased spouse, even when no tax is due. When properly elected, portability can eliminate the need to lock assets inside a credit-shelter trust at the first death, which keeps the survivor’s balance sheet simpler and may preserve a second basis adjustment at the survivor’s death. The key takeaway is that portability saves exemption amount, not state estate tax or creditor exposure.

For many Colorado couples, the simplicity and basis benefits are compelling because Colorado has no state estate or inheritance tax and many families hold appreciated residences and marketable securities where basis planning matters.

Where Portability Fails Or Underperforms

Portability is not a shield against future creditors, new spouses, or spend-down risk. If someone sues the survivor, remarries, or drifts toward poor financial decisions, the combined estate remains exposed. Portability also does not multiply GST exemption in the same way that a well-funded bypass trust can. If multigenerational planning is a priority, relying solely on DSUE can leave grandchildren’s wealth exposed to estate tax at the survivor’s death. Finally, portability demands paperwork discipline. Miss the return, and the DSUE may be lost. Although there are relief procedures for late elections, they are not guaranteed and can add cost and delay.

How Disclaimer Funding Keeps Options Open

A disclaimer plan leaves everything outright to the survivor but builds a route to a bypass trust if conditions favor funding one after the first death. The survivor, advised by counsel and the trustee, can disclaim within the nine-month window, causing the disclaimed share to pass into a pre-drafted credit-shelter trust. That trust can include descendants (and sometimes the survivor in a carefully limited way) and can be structured for creditor protection, divorce insulation, and GST leverage. The important point is that you choose after the fact, when values, exemptions, and family circumstances are known rather than guessed.

When Disclaimer Funding Outperforms

Disclaimer funding tends to win when the survivor faces litigation risk, works in a high-liability profession, anticipates remarriage, or simply wants institutional guardrails. It also shines when the couple expects to do multigenerational planning, because a properly structured bypass trust can be fully GST-exempt and grow outside future transfer taxes. In volatile markets, the trustee can place high-growth assets in the bypass trust and leave high-basis or slower-growth assets with the survivor, improving combined after-tax results over time. The discretion to size the trust based on the exemption in effect at the date of death—rather than what Congress promised years earlier—is the core strategic advantage.

Drafting Elements That Separate Strong Plans From Weak Ones

A sophisticated plan needs crisp language, clean mechanics, and realistic administration. Before anyone signs, add these elements so the survivor is set up to choose well later and so lawyers have the tools they need to execute.

• Funding Flexibility With Guardrails. Spell out a formula disclaimer option, a fixed-dollar option, and a hybrid that caps the bypass trust at the then-applicable exemption. That trio lets the survivor avoid overfunding when estate tax risk is low and shift more when it is high. Close this section by confirming that any disclaimer must be voluntary, unqualified, and made within the statutory window.
• Basis-And-Swap Provisions. Give the trustee swap power in the bypass trust so the survivor (or the survivor’s agent) can exchange low-basis assets out of the trust for high-basis assets late in life. This preserves creditor protection while improving basis results before the survivor’s death. Finish the provision by directing the trustee to keep contemporaneous records of all swaps and valuations.
• Directed Trustee Or Distribution Committee. Use a directed-trust framework so investment and distribution calls are separated. An independent distribution trustee adds creditor protection, while an investment advisor keeps portfolio decisions nimble. Close by naming a practical succession chain so vacancies never stall administration.
• GST Language That Actually Works. Authorize allocation of GST exemption to any disclaimed share, and let the fiduciary elect “late allocation” where permitted. Finish by instructing the preparer to explicitly state allocations and trust identifiers on the survivor’s returns.
• Housing, Liquidity, And Buy-Sell Coordination. If the couple’s wealth sits in a residence and a closely held company, the plan should address occupancy rights, rent, capital improvements, and any shareholder agreements. Wrap up by giving the trustee authority to finance or refinance real estate inside the trust without losing protection.

Each of these drafting pieces starts with legal theory but ends with operational clarity. You want future administrators to know what to do on day one.

Practical Scenarios That Drive The Choice

It helps to run a few lived-in scenarios before deciding which default your plan should prefer. Consider three common Colorado profiles and what tends to work best. The first profile is Equity-Heavy Retirees. A couple in Boulder with a paid-off house and sizeable brokerage accounts often benefits from portability, because a double step-up can erase decades of embedded gains. End this analysis by noting that a disclaimer trust should still be available if health events or liability concerns arise.

The second profile is The Professional With Exposure. A physician in Denver or an entrepreneur in Fort Collins may lean toward disclaimer funding because creditor protection and guardrails add tangible value that portability cannot replicate. Close this by reminding readers that a modestly funded bypass trust can still leave ample assets outright for lifestyle comfort.

The third profile is The Multigenerational Planner. A family aiming to endow education and healthcare for descendants usually favors disclaimer funding with strong GST provisions. Conclude by observing that portability can ride along as a backstop if the survivor elects it for any remaining outright assets.

Administration: The Difference Between Good And Great Outcomes

Plans live or die in administration. To make either approach work, establish a playbook. First, name a proactive personal representative who will gather appraisals quickly and manage the estate-tax return calendar. Second, engage a CPA who understands both basis strategy and the portability election mechanics. Third, keep a living balance sheet, so the survivor and trustee can see which assets belong where, how basis sits today, and how the exemption interacts with projected growth. Finally, build an annual “trust tune-up” meeting into the plan, so swaps, distributions, and GST tracking do not drift.

How Colorado’s Elective Share And No State Estate Tax Factor In

Colorado’s elective-share regime means a surviving spouse can claim a statutory share of the augmented estate despite the will’s terms. A clean disclaimer plan should coordinate with a marital agreement or, at minimum, provide disclosure and consent so the survivor’s post-death disclaimer does not collide with elective-share expectations. Colorado also lacks a state estate tax, which makes basis planning and creditor protection comparatively more valuable than state-tax arbitrage. The lesson is simple: because the state takes less at death, you should take more care with income-tax and protection details during life.

Putting It Together For Colorado Families And Their Advisors

You do not have to choose portability or disclaimer funding today. You have to choose flexibility that your future self can use. A well-built Colorado plan names the right people, sets the timelines, equips the trustee with basis tools, and leaves a bypass trust on the shelf that can be filled—or not—when the moment arrives. For lawyers, the aim is to give the survivor election points without hidden traps. For families, the aim is to keep simplicity when simplicity helps and to add structure when the world gets messy.

Talk With Braverman Law Group

If you want a plan that can pivot gracefully in 2026 and beyond, Braverman Law Group can design a portability-first plan with a disclaimer safety valve, or a disclaimer-first plan with portability as a backstop, tailored to your assets and risk profile. Call Braverman Law Group at (303) 800-1588 to schedule a strategy session and see models comparing both paths with your actual numbers.

A sophisticated approach helps clients avoid unintended outcomes. Older documents drafted during lower exemption years may no longer serve their intended function. Formula-funded trusts, credit-shelter provisions, and gifting patterns designed for tax minimization must be reviewed to ensure they still align with each family’s priorities.

Understanding How the New Exemption Alters Transfer Tax Exposure

A clear exemption threshold provides the foundation for every other planning decision. The fifteen-million-dollar figure applies across the estate, gift, and generation-skipping transfer systems. Married couples who use portability often combine their exemptions to protect up to $30 million. That scale removes most Colorado estates from federal taxation, especially those composed primarily of residential real estate, marketable securities, and business holdings below the new threshold.

This shift does not mean that long-term planning fades in importance. It simply alters which risks matter most. Techniques developed when the exemption was lower sometimes introduce unnecessary administrative burden. Credit shelter trusts may divide assets in ways that complicate investment strategy or constrain access for a surviving spouse. Older gifting programs may also result in adverse income tax consequences if appreciated assets are transferred during a lifetime rather than being held for a later basis adjustment. Reviewing each structure helps identify where modernization improves efficiency.

Basis Planning Moves to the Center of Estate Strategy

Income tax considerations take on greater weight once federal transfer taxes are removed from the picture. Colorado residents frequently hold assets with meaningful appreciation. Residential property along the Front Range, equity positions accumulated during long careers, and ownership interests in closely held businesses often contain substantial unrealized gain. Preserving the opportunity to secure a step-up in basis, therefore, becomes a core objective.

A higher exemption also reframes the value of grantor trust strategies. Trusts created primarily for tax minimization may no longer yield the same benefits if the underlying assets would produce greater long-term gains through basis adjustments at death. Some families evaluate whether old transfers remain helpful or whether partial trust modifications can restore future tax flexibility. Techniques such as introducing powers of appointment, adjusting administrative provisions, or merging related trusts sometimes create improved outcomes. Each decision depends on the structure of the assets and the family’s long-term objectives.

Colorado’s Economic Landscape Creates Unique Planning Considerations

Local factors shape how federal rules apply. Real property values across Colorado continue to show long-term growth, which means that many families hold homes or investment properties with significant appreciation. Agricultural families often own land accumulated over generations. Business owners frequently operate companies, service firms, and professional practices that contain goodwill or other intangible assets. These categories of property require individualized planning because lifetime transfers may reduce the opportunity to increase basis.

A thoughtful strategy addresses these local dynamics. Some clients choose to simplify ownership by transferring appreciated property back into an estate when doing so creates a more favorable tax profile. Others maintain entity structures for operational or liability-related reasons, yet adjust internal ownership levels to accomplish generational planning without forfeiting income tax benefits. The correct approach depends on the family’s asset mix, liquidity needs, and succession plans.

Existing Irrevocable Trusts Should Be Reevaluated Under the New Regime

Many Colorado families hold irrevocable trusts created during an era when limiting estate tax exposure dominated planning. These trusts often continue to serve legitimate non-tax purposes, including governance, asset management, and creditor protection. However, others primarily addressed tax concerns that no longer apply. A comprehensive review identifies whether a particular trust continues to advance current family goals.

Several questions guide this analysis. Practitioners evaluate whether specific trust assets would generate improved income tax results if included in the grantor’s estate. They also assess whether the trust’s administration remains efficient in the modern environment. Investment strategy, fiduciary powers, and long-term distribution patterns all play a role. When adjustments appear appropriate, tools such as decanting, modification under state law, or careful restructuring may help realign the trust with the family’s contemporary priorities. Each decision must be made cautiously to avoid unintended tax results.

Lifetime Gifting Plays a More Nuanced Role When Transfer Taxes Decline

A larger exemption affects how advisors approach gifting. Prior strategies focused on reducing the value of a taxable estate, often through annual exclusion gifts, intrafamily loans, or valuation-based transfers. Those tools still hold value, yet their purpose changes. Families may continue to make gifts for reasons unrelated to tax, such as supporting younger generations or protecting assets from personal liability risks. Still, the economic analysis behind each transfer shifts once tax pressure diminishes.

Modern gifting strategy, therefore, examines the nature of each asset. Cash transfers maintain flexibility. Interest in entities may support legacy planning if they align with family governance goals. A highly appreciated property requires special caution because a lifetime transfer may prevent a future basis increase. Reviewing outstanding promissory notes from prior transactions, especially those involving grantor trusts, may help identify opportunities to improve long-term results. Practitioners should approach these adjustments with precision to preserve existing benefits while positioning clients for the new environment.

Charitable Planning Evolves Under a Higher Exemption

Colorado philanthropists also reconsider their strategy under the new exemption. Charitable lead trusts, private foundations, and testamentary gifts were once used frequently to reduce taxable estates. Those designs still support values-driven objectives, yet the tax rationale may no longer carry the same weight. Families now focus on administrative efficiency, flexibility, and long-term control rather than a driven structure.

Some clients may choose donor-advised funds to streamline philanthropy. Others may refine the mission of existing entities or simplify complex structures created in earlier decades. Reviewing how each charitable tool operates helps ensure that future giving aligns with both personal values and modern tax objectives.

Continued Importance of Coordinated Multigenerational Planning

Even with a high exemption, families benefit from coordinated planning. Colorado households often include blended families, children from prior marriages, or multigenerational ownership of properties and businesses. Governance, succession planning, and clear distribution language remain essential. Updating documents to reflect current goals ensures that the increased exemption does not lead to complacency that later causes conflict.

Estate tax exposure may shrink, but the need for structured planning does not. A cohesive design protects beneficiaries, organizes long-term administration, and supports the family’s evolving financial picture.

Speak With a Boulder Estate Planning Lawyer for Guidance

If you want a tailored strategy that accounts for the new fifteen-million-dollar exemption and Colorado’s unique planning landscape, you can schedule a free consultation with Braverman Law Group, LLC’s Boulder estate planning lawyers at (303) 800-1588 for thoughtful guidance grounded in current federal law.

The Core Design in Plain Terms

A §530A account is an IRA-style custodial account for a child under age 18 who has a Social Security number. Contributions can be made by parents, relatives, the child, and—crucially—employers. Earnings accumulate tax free, with investment menus limited to low-fee index mutual funds and ETFs. Total annual fund expenses are capped at 0.10 percent of assets. Distributions are tightly restricted before age 18, and early withdrawals after 18 generally trigger a 10 percent penalty unless they meet specified exceptions, notably certain education and first-home costs.

For U.S.-citizen babies born between January 1, 2025 and December 31, 2028, Treasury will deposit a one-time $1,000 “seed” into a §530A account as part of a pilot intended to jump-start long-term compounding.

Annual Limits and the Employer Angle

Two caps matter:

• Total contributions to a child’s account are $5,000 per year, indexed for inflation after 2027.
• Employer contributions up to $2,500 may be made tax free to the employee, starting July 2026, if the employer follows program rules (written plan, employee notices, and nondiscrimination standards similar to dependent care assistance programs).

The employer exclusion rides on a new Code provision and, notably, these programs are not ERISA plans, reducing compliance complexity compared with retirement benefits—though employers still must satisfy nondiscrimination and communication duties. Expect additional Treasury guidance on open questions, for example, coordination where an employee has multiple eligible children.

How §530A Compares to Existing Tools

• 529 plans remain the heavy lifter for education. 529s allow much larger contributions, tax-free earnings, and penalty-free withdrawals for qualified education, with growing flexibility for limited Roth rollovers. §530A is narrower but adds an employer-funded path and a universal newborn seed for eligible births. Nothing prevents a family from using both.
• Coverdell ESAs (Code §530) can also fund K-12. Their low annual cap and income phase-outs have constrained usage; §530A’s employer contribution feature and potential seed grant may make it more attractive for very young children.
• UTMA/UGMA custodial accounts are simple but tax-inefficient as balances grow and provide no employer funding or federal seed. §530A adds tax-free buildup with fee discipline and guardrails around early use.
• Trusts—for example, a Colorado revocable trust holding a sub-trust for minors—offer unmatched control and creditor protection but involve drafting and administration costs. §530A can complement trust design by building a low-friction, tax-favored “first dollars” bucket for education and launching-into-life expenses. Many families will pair trust distributions with employer-funded §530A contributions to diversify sources.

Investment and Fee Discipline Baked Into the Statute

One of the most distinctive features is the statutory insistence on index-tracking funds with ultra-low expense ratios—a guardrail rarely seen in the Code. That design aims to maximize the compounding benefit of the seed deposit and family contributions. Providers are expected to offer menus anchored to broad indices such as total U.S. equity, S&P 500, and total bond funds. For practitioners, this reduces the due-diligence burden around fund selection while imposing operational constraints on custodians.

Access Rules and Penalties

Before age 18, withdrawals are tightly limited (think rollovers and corrections). After 18 and before 59½, a 10 percent penalty generally applies, with statutory exceptions for qualified education and first-home costs. After 59½, the account behaves much like an IRA. In addition, at age 18 the child must have taxable earned income to continue making new contributions, mirroring IRA logic. For planners, those rules point to §530A as a pre-college accumulation vehicle with carefully defined “on-ramps” for education and home formation.

Administration and Compliance for Employers

If you sponsor benefits, mark your calendar for July 2026. To exclude employer contributions from employees’ income, you will need a written program, employee notices, and nondiscrimination practices analogous to dependent care rules. These programs are voluntary and outside ERISA, but payroll, HRIS, and TPA coordination will be essential. Employers should also plan for practical controls: child-level contribution caps, mid-year job changes, and attestation processes when an employee has multiple eligible children.

Estate Planning Implications for Colorado Families

From a planning lens, §530A is best understood as a narrow, high-efficiency sleeve inside a broader family strategy:

• Guardianship and Incapacity. Because the child is the account owner and the account is custodial before majority, ensure your Colorado wills and parental nominations of guardian designate a trusted adult to interact with the custodian and, later, to counsel the child as they reach 18. The account itself should not pass through probate if properly titled, but the identity and cooperation of the custodian matter.
• Trust Coordination. If your revocable trust includes education and health standards for minors, map those standards to the permitted §530A distribution categories. A trustee might preserve §530A assets for penalty-free uses and satisfy other needs from the trust, or the reverse, depending on investment performance and timing.
• Funding Sequence. For babies eligible for the $1,000 seed, open the §530A as early as the custodian allows to capture maximum compounding. For older children, consider annual “stacking”: fund the §530A up to the family’s target (and capture any employer contribution), then 529 for larger education needs, then UTMA or trust for flexible spending.
• Creditor and Divorce Exposure. §530A accounts do not replace the asset-protection envelope you can build with properly drafted trusts. If shielding family capital from future claims is a priority, use §530A for narrow, statutory purposes and continue to rely on trust structures (and, where appropriate, Wyoming entities) for wealth preservation.

Practical Questions We Are Fielding (and What We Know)

• Can there be more than one account per child? No—there is one account per child, with limited rollovers (including to an ABLE account) permitted.
• What if a parent changes jobs mid-year? Expect aggregate caps to apply at the child level. Employers will need certification or attestation processes to avoid overfunding. Treasury guidance should address coordination mechanics.
• How are the funds invested at launch? Only index-tracking mutual funds and ETFs under the 0.10 percent fee ceiling. Target-date index options may emerge if they meet the cap.
• Will employers actually use this? Early indications suggest many will, particularly large tech and professional-services firms eager to add family-friendly benefits without ERISA complexity.

Action Steps for Clients and Counsel Before July 2026

• Inventory your current children’s accounts (529, UTMA, trusts) and model how a $5,000 annual §530A layer—plus any employer dollars—changes your education and first-home funding plan.
• Coordinate with HR if an employer contribution is available; ask about plan documents, nondiscrimination testing, and enrollment timing.
• Draft or update powers of attorney for minors where appropriate and confirm your Colorado guardianship nominations so a responsible adult can manage the account if needed.
• Calibrate your trust distribution standards and beneficiary education language to align with §530A’s permitted uses.

Braverman Law Group is already integrating §530A into Colorado estate plans—alongside 529s, trusts, and, when appropriate, Wyoming entities—to balance tax efficiency with the control families expect. If you would like a tailored roadmap for your children or your clients, we are here to help. Give us a call at (303) 800-1588 to schedule a free consultation today.

Note: This summary reflects the statute and agency commentary available as of September 2025; Treasury and IRS guidance may refine several points before the July 2026 launch.

This post lays out how the problem arises, what patterns raise red flags, and how to draft, fund, and administer two spousal trusts that withstand scrutiny. The analysis aims at informed families and at counsel who want concrete drafting moves rather than theory alone.

How the Reciprocal-Trust Doctrine Works

In United States v. Estate of Grace (1969), the Supreme Court set a two-part test. The government asks whether the trusts are interrelated and whether they place each grantor in roughly the same economic position as if each had created a trust for themselves. When the answer is yes, inclusion follows. In practical terms, the doctrine targets “you give my spouse what I want for myself, and I will give your spouse the same,” especially when the trusts sit side by side and operate the same way.

The doctrine interacts with retained-power rules. If each spouse effectively holds, through the other trust, powers they could not hold directly—such as the ability to direct distributions, enjoy income, or unwind transfers—the IRS argues for estate inclusion. Avoiding that result requires real, not cosmetic, differences.

Design Choices That Invite IRS Attention

You increase risk when you do several of the following at once:

• Sign both trusts on the same day, with identical trustees, identical beneficiaries, and identical distribution standards.
• Give each spouse the same limited power of appointment over the same class of descendants on the same terms.
• Fund both trusts with equal assets of the same type, especially closely held business interests or identical marketable portfolios.
• Name each spouse as trust protector with symmetrical removal and replacement powers over the other trust’s fiduciaries.
• Have each trust own life insurance on the other spouse, with the same premium-payment pattern and split-dollar terms.
• Coordinate distributions in lockstep, including back-to-back loans or “cross-streamed” payments that mimic reciprocal income rights.

None of these items alone guarantees inclusion. When combined, they paint the “interrelated and economically identical” picture that Estate of Grace condemns.

Breaking Reciprocity: Drafting Levers That Matter

You avoid the trap by creating real asymmetry at formation and keeping it through administration. Think holistically, not as a checklist.

• Timing. Execute the trusts in different months or even different years. Allow enough time between gifts so the second trust does not look like a prearranged exchange for the first. Pair that with different funding schedules.
• Trustee structure. Use different independent trustees. Grant removal and replacement power to only one spouse, or to a third party for the second trust. Avoid symmetrical protector powers.
• Distribution standards. Give Trust A a pure “best interests” discretionary standard with an independent trustee; give Trust B a HEMS standard (health, education, maintenance, support) with an ascertainable-standard limiter and a distribution committee. Unequal discretion matters.
• Powers of appointment. Allow a testamentary limited power in one trust and no power (or a narrower class) in the other. Alternatively, allow an inter vivos limited power in one trust that requires protector consent; omit any comparable power in the other.
• Grantor-trust status. Keep one SLAT as a grantor trust via a swap power or reimbursement clause. Make the second non-grantor, or include a toggle that turns off grantor status after a set period. Divergent income-tax results help prove non-identity.
• Funding mix. Contribute different asset classes and different values. Place marketable securities into one trust and real estate or closely held interests into the other. If life insurance belongs, centralize policies in one trust and use cash or marketables in the other.
• Beneficiary class. Allow spousal distributions in only one trust, or allow them in both trusts but at different priority levels and with distinct veto or consent mechanics.
• Situs and governing law. Select different states for administration, if appropriate to your plan, and appoint different registered agents and trust companies. Distinct fiduciary regimes reinforce separation.

You do not need every lever. You do need enough meaningful differences that a neutral observer concludes these were separate, independent designs rather than a matched set.

Funding and Reporting: Where Many Plans Stumble

You must align the economics of each transfer with the legal form you drafted.

• Document separate sources. Use separate accounts for each spouse’s contribution. If you live in a community-property state, consider a marital agreement or transmutation to avoid later arguments that both spouses funded both trusts. In Colorado, confirm separate ownership before you transfer assets.
• Avoid “round-trip” cash. Do not loan from Trust A to the grantor of Trust B and then back again the same week. If loans are necessary, price them at arm’s-length rates, schedule payments, and document security.
• Gift-tax returns. File timely Forms 709. Disclose the structure in a protective way. If you allocate GST exemption, describe the variation between the trusts to reinforce non-reciprocity.
• Crummey mechanics. If you rely on demand powers, send notices separately for each trust to distinct beneficiaries. Maintain proof.
• Valuations. For closely held interests, use independent appraisals and consider discounts only where supportable. Give each trust different blocks or classes to avoid sameness.

Administration: Keep the Differences Alive

Good drafting fails if administration erases your distinctions.

• Use different investment policies and distinct advisors. One trust may hold growth equities; the other may emphasize real assets or credit strategies.
• Stagger distributions. Do not approve matching requests in parallel. Document the decision process and the separate rationale for each payment.
• Use the grantor-trust swap power in only one trust. Swap in high-basis assets for low-basis holdings as part of basis management, and leave the other trust untouched.
• When decanting or amending under a protector power, avoid symmetrical changes. If one trust needs modernization, fix it without mirroring the other.

What If You Already Signed “Twin” SLATs

You can still improve your posture.

• Decant one trust into a new instrument with different standards, fiduciaries, or beneficiary classes.
• Release a power of appointment or a protector right on only one side.
• Migrate situs for one trust to a different state with different administrative provisions.
• Restructure life insurance so only one trust owns policies; have the other hold liquid investments instead.
• Refinance loans and change investment advisors to break parallel tracks.

Make these moves for business reasons you can defend. A paper trail that shows real-world objectives—investment diversification, professional trustee oversight, or better administration—helps.

When One SLAT Beats Two

Sometimes a single SLAT paired with portability, disclaimer planning, or a credit-shelter trust at the first death gives a cleaner result. That path can reduce legal friction and administrative cost while still moving growth out of the combined estate. You control access risk with thoughtful distribution language and an independent trustee who understands family dynamics.

A Short Working Checklist for Counsel

• Different dates, different funding schedules, different assets.
• Different fiduciary teams, with non-parallel removal powers.
• Different beneficiary priority and distribution standards.
• Divergent powers of appointment and protector frameworks.
• One grantor trust and one non-grantor (or a toggle used for only one).
• Clean gift sources, no circular loans, proper valuations.
• Separate investment policies and advisors; staggered distributions.
• Thoughtful GST allocation with clear disclosure on each Form 709.
• Ongoing file memos that explain independent decisions.

Plan With Intent, Not Symmetry

You can enjoy the financial flexibility that couples seek from SLAT planning without inviting inclusion. The key is intent backed by design, funding discipline, and ongoing administration that prove each trust stands on its own. Braverman Law Group can model outcomes, draft instruments with the right asymmetry, and guide trustees so your plan works in real life as well as on paper. To discuss whether one or two SLATs fit your situation—and how to avoid reciprocal-trust pitfalls—contact our team to schedule a strategy session.

What Counts as a Digital Asset

Colorado law defines a digital asset as any electronic record you own or control. That broad phrase covers:

• Social-media content such as Instagram photos, X (formerly Twitter) posts, and Facebook messages
• Cloud documents and email stored on platforms like Gmail or Office 365
• Photos and home videos preserved in Amazon Photos or Apple Photos
• Domain names, blogs, and revenue-producing websites
• Cryptocurrency, non-fungible tokens, and in-game valuables such as skins or coins
• Loyalty rewards, airline miles, and online gift card balances
  Each category may hold emotional or monetary value. Ignoring them risks loss or even theft while your estate moves through probate.

RUFADAA’s Three-Tier Permission System

The statute gives service providers a clear hierarchy for honoring requests:

1. Online tool directives – Some companies let you name a legacy contact in account settings. Apple’s Digital Legacy and Google’s Inactive Account Manager are popular examples. Your election inside the platform overrides conflicting language in any estate document.
2. Governing instrument provisions – If the account lacks an internal tool, the next source of authority is your will, trust, or power of attorney. Explicit grants of access and the right to receive content trump default terms of service.
3. Default state rules – Absent both an online designation and written authority, the provider may rely on Colorado’s default access rules, which limit what a fiduciary may obtain and often require a court order.
   Practical tip for lawyers: insert a clause that tracks RUFADAA’s language verbatim. Providers look for specific statutory citations before releasing data.

Roles and Responsibilities Under RUFADAA

• Personal representative – After death, this fiduciary can request disclosure of content to settle the estate. The representative must supply a death certificate, letters of appointment, and sometimes a court order describing the asset.
• Agent under power of attorney – While you are living, your agent may need access if you become incapacitated. The power must expressly allow the agent to read electronic communications; a general property clause is not enough.
• Trustee – If the trust owns digital property, the trustee may request access the same way a personal representative would. Separately titled crypto wallets often fall into this category.
• Guardian or conservator – With court approval, these fiduciaries can manage digital assets on behalf of a protected person.
  A lawyer drafting documents should list each role, cite RUFADAA, and grant the minimum access needed to perform fiduciary duties.

Common Pitfalls When Digital Assets Enter Probate

• Terms of service conflicts – Most agreements prohibit password sharing. Without a RUFADAA-compliant directive, your family risks criminal liability under the Computer Fraud and Abuse Act if they log in with your credentials.
• Two-factor authentication roadblocks – Even with authority, a fiduciary may need the decedent’s phone or hardware key to complete security prompts. Planning should include a secure record of authentication devices.
• Valuation challenges – Cryptocurrency prices fluctuate by the second, and collectible NFTs can swing wildly. Executors must capture time-stamped screenshots and obtain formal appraisals when estate-tax filings are required.
• Hidden liabilities – Subscription services often auto-renew. Failure to cancel eats estate funds. A complete inventory helps fiduciaries shut down recurring charges quickly.

Steps Clients Can Take Now

• Review and update online legacy settings. Apple, Google, Facebook, and many others provide internal tools. Elect a trusted person and ensure the email address you name is current.
• Store an encrypted digital asset inventory. List account names, approximate values, and where to find credentials. Never place raw passwords in a safe-deposit box; instead, record master credentials for a password manager or hardware wallet seed phrase.
• Sign a digital-asset power of attorney. Grant your agent the power to access electronic communications, manage crypto keys, and close accounts. Include RUFADAA citations so providers recognize the document.
• Amend your will or trust. Direct your personal representative or trustee to take possession of digital property, and waive service-provider liability when they follow lawful instructions.

Checklist for Attorneys Drafting RUFADAA Clauses

• Cite Colorado Revised Statutes § 15-14-1501 through § 15-14-1520.
• Distinguish between “catalogue records” (metadata) and “content” (full messages) because providers can refuse to share content without explicit consent.
• Include language authorizing disclosure of deleted items when forensic access is necessary.
• Provide indemnity for service providers that rely in good faith on the direction.
• Reference federal laws: Stored Communications Act § 18 U.S.C. 2701 and Computer Fraud and Abuse Act § 18 U.S.C. 1030.
• Advise clients to update directives whenever they create key new accounts.

Ethical Duties When Advising on Digital Assets

The Colorado Rules of Professional Conduct require technological competence. Lawyers must understand encryption, multi-factor authentication, and data privacy so they can spot barriers that frustrate fiduciaries. Failing to inform a client about RUFADAA could breach the duty of competence, especially when digital holdings form a significant portion of the estate.

Sample Scenario: Crypto Wallet in the Personal Safe

Maria owns Bitcoin worth two million dollars and keeps her hardware wallet in a locked safe. Her will names her brother as personal representative, but the document does not mention digital assets. At probate, the brother finds the device yet lacks the twelve-word seed phrase. Service providers cannot help because the blockchain is decentralized. Without RUFADAA language granting access authority and detailed instructions on recovering the wallet, the estate loses the entire holding. A single paragraph in the will and a sealed note stored with the device would have preserved the value.

Why Immediate Planning Beats Post-Mortem Litigation

Courts can issue orders compelling disclosure, but providers often fight or delay production, especially when requests cover content rather than log-in metadata. Litigating costs money and exposes private family communications to the public record. Preventing the dispute with a comprehensive digital-asset plan costs far less and respects confidentiality.

How Braverman Law Group Guides Clients Through RUFADAA

• Asset audits uncover hidden online property, from dormant PayPal balances to domain registries linked to side businesses.
• Customized powers of attorney grant the narrowest effective authority, reducing privacy risks while meeting fiduciary needs.
• Trust structures hold crypto and intellectual property under a single umbrella, with corporate trustees who understand cold‐storage security.
• Continuing education sessions train successor fiduciaries to administer online accounts, avoiding accidental violations of federal anti-hacking statutes.

Secure Your Digital Legacy Today

Your emails, photos, and Bitcoin wallet deserve the same stewardship as your home and brokerage account. Colorado’s RUFADAA gives you the framework, but only deliberate drafting and well-kept inventories ensure swift access for those who will manage your estate. Braverman Law Group stands ready to integrate digital-asset strategies into your broader plan, protecting both sentimental memories and high-value holdings from unnecessary loss. Call (303) 800-1588 or reach out through our secure contact form to schedule a consultation. Preserve your online legacy with the same care you devote to every other facet of your estate.

Why Today’s Window Could Slam Shut

Lawmakers appear ready to scrap the federal estate tax as part of the next budget deal. That headline sounds wonderful until you study the fine print. When the estate tax disappears, the GST exemption disappears along with it. If history repeats, the levy will return—remember 2010’s single-year repeal—yet estates created during the gap will face fresh estate tax and new GST rules without any grandfathered shield. Families grieving a loss or coping with incapacity will have no time to build defenses. The only reliable move is to lock in the current exemption before Congress changes the landscape.

GST Exemption: Use It or Lose It

The exemption—$13,990,000 per person in 2025—works on a first-come basis. You allocate it to a Dynasty Trust this year; the government cannot claw it back later, even if rates or exemptions fall. Wait, and the figure could plunge to six or seven million dollars or vanish entirely. Once erased, it cannot be reclaimed.

What a Dynasty Trust Really Does

A Dynasty Trust sits outside your taxable estate forever. You move assets into the trust, assign the GST exemption, and name a trustee who can distribute income and principal for health, education, maintenance, and support. Those four words matter; they allow serious help—tuition, medical insurance, surgery, down payments, or startup costs—while discouraging loafing. When beneficiaries reach life milestones, they access funds without ever owning the assets outright, so creditors, ex-spouses, and future tax collectors stay away.

Top Benefits You Capture by Funding a Dynasty Trust Now

• Permanent tax shelter – Assets inside the trust avoid estate, gift, and GST taxes at every generation.
• Growth beyond reach – Income compounds without state or federal transfer levies eroding it.
• Protection from outsiders – Trust provisions stop lawsuits, divorces, and bankruptcies from draining family capital.
• Health and education safety net – Trustees can pay premiums, tuition, and medical bills when the next recession or health crisis strikes.
  Securing these advantages today ensures your work continues to lift descendants long after present tax statutes fade from memory.

Dynasty Trusts Are Not Only for Billionaires

Some Coloradans believe only a certain Mars-obsessed billionaires need a century-long estate plan. Ignore that myth. You do not need Elon Musk’s wealth (or ego) to benefit. If your net worth sits above six million dollars and you picture grandchildren graduating college debt-free, a Dynasty Trust fits. The strategy simply amplifies opportunities you wish you had—full-ride scholarships, start-up capital, and health coverage—without handing out unearned Ferraris.

Education and Medical Care: The Real Stakes

Tuition at a four-year public university already tops twenty-five thousand dollars annually. Private colleges cross seventy thousand. Health insurance deductibles climb every year, and a single hospital stay can mirror Ivy League tuition. Picture future decades of rising costs and shrinking public aid. A Dynasty Trust turns your present dollars into tomorrow’s lifeline. Trustees can pay tuition directly to institutions under the Internal Revenue Code’s education exclusion, bypassing gift limits entirely. They can also cover unlimited medical bills for surgeries, therapies, and premiums through the medical exclusion. Your descendants receive care and knowledge, not handouts for luxury living.

How Funding Now Shields Children and Grandchildren From Harsh Futures

You transfer appreciating assets—index funds, real estate, closely held business interests—into the trust today. Growth accelerates under professional management without annual transfer tax tolls. A trustee follows guidelines you script: pay college expenses in full; match retirement account contributions; cover necessary medical costs; seed business plans that pass a viability review. Each distribution requires documented purpose, deterring entitlement while guaranteeing opportunity. Should a beneficiary drift toward unhealthy spending, the trustee may suspend or redirect payments toward counseling or education instead. Your blueprint stays strong whether the economy booms or falters.

Steps Braverman Law Group Takes to Launch Your Dynasty Trust

• Discovery Meeting – You outline goals, family dynamics, and asset mix. The firm shows how a Dynasty Trust meets your vision and confirms the GST exemption amount available.
• Design Session – Attorneys craft tailored distribution standards, select a corporate or individual trustee, and integrate the trust with your Colorado revocable trust and durable powers of attorney. A clear, client-friendly diagram replaces legalese.
• Funding Stage – Deeds, assignment documents, and investment account transfers move assets into the trust. The firm files gift tax returns allocating your GST exemption precisely.
• Ongoing Counsel – Annual reviews ensure the trust adapts to new children, marriages, divorces, or tax legislation. You receive written updates and action items rather than dense statutory citations.

Common Questions Colorado Families Ask

Will the trust force my heirs to live in Wyoming or another state?
No. Beneficiaries may reside anywhere. The governing law of the trust remains fixed, while distributions follow them worldwide.

Can I serve as trustee and still protect assets?
You may serve as investment trustee but should appoint an independent distribution trustee to preserve creditor and tax insulation.

What if Congress repeals the estate tax forever?

Your Dynasty Trust still works. The exemption you locked in protects the principal, and the trust continues providing creditor protection and divorce insulation.

Does a Dynasty Trust interfere with charitable giving plans?
Quite the opposite. The trust can name a family foundation among contingent beneficiaries or share growth with donor-advised funds while still supporting future generations.

Act Before the Window Closes

Congress may switch tax policy overnight, but incapacity or unexpected death can arrive even faster. Planning now converts uncertainty into security, ensuring tuition gets paid, surgeries proceed, and family ventures blossom long after today’s politicians retire. Braverman Law Group stands ready to finalize your Dynasty Trust in weeks, not months. Call (303) 800-1588 or complete our secure contact form to protect your life’s work for every generation yet to come.

Two Bar Admissions, One Broader Shield

This dual-state capability is more than a résumé detail; it translates directly into better planning choices for you. Colorado statutes offer strong revocable trusts and solid probate shortcuts, yet they stop short of the cutting-edge liability barriers found just north of the border. Because Diedre can practice in both jurisdictions, she drafts, forms, and maintains Wyoming entities under Wyoming law while still anchoring the rest of your plan under Colorado law. You meet with one legal team, pay one flat fee, and receive one cohesive strategy that spans two states.
Wyoming’s court system recognizes these Colorado-based attorneys just as fully as any Cheyenne lawyer. That recognition empowers Braverman Law Group to form new entities, file annual reports, and, when needed, defend those structures in Wyoming courts. As a client, you gain a deeper moat around your wealth without leaving your favorite Front Range coffee shop.

Why Wyoming Sits at the Top for Asset Protection

Asset-protection rankings consistently place Wyoming in the nation’s top tier for several reasons. First, the state imposes no personal or corporate income tax, allowing business profits and trust earnings to accumulate free of state tax drag. Second, Wyoming statutes give LLC owners robust privacy; member names stay off public filings, shielding you from data-hungry litigants. Third, creditors face a “charging-order” remedy as their sole avenue of collection, which means they cannot force a liquidation or seize company assets. Finally, the annual maintenance requirements remain minimal: a modest filing fee and a registered agent keep your entity compliant.
Those four features—tax freedom, privacy, creditor deterrence, and low overhead—blend perfectly with a Colorado estate plan. You still claim Colorado residency and enjoy local probate shortcuts, yet your business interests and long-term investments sit under Wyoming’s stricter creditor rules.

Wyoming Close Limited Liability Companies: A Family-Focused Fortress

A Wyoming CLLC refines the traditional LLC to fit tightly held families. The statute caps members at thirty-five, bans public trading of ownership interests, and limits member withdrawal rights unless all members consent. Those restrictions close loopholes creditors might exploit and discourage disgruntled family members from selling outside the clan.
Braverman Law Group tailors each Close LLC to your goals. For some families, the entity holds a vacation rental in Summit County; for others, it manages a brokerage portfolio or a private lending venture. Because the company exists under Wyoming law, every membership interest falls under Wyoming’s charging-order protection—even if the property itself sits in Denver or Boulder.
Interested readers can dive deeper into CLLCs by requesting Braverman Law’s complimentary whitepaper Planning with the Wyoming Close LLC. The report explains formation steps, tax treatment, and practical management tips in plain English.

Asset-Protection Trusts: Adding an Extra Wall

A domestic asset-protection trust (sometimes called a self-settled spendthrift trust) lets you transfer assets to an irrevocable trust while naming yourself as one of the permissible beneficiaries. Under Wyoming’s statute, creditors face a four-year window to challenge contributions; afterward, the trust assets sit beyond their reach. You still receive discretionary distributions for health, education, maintenance, or support at the trustee’s discretion, yet the assets no longer appear on your personal balance sheet for lawsuit purposes.
Because Diedre practices in Wyoming, she drafts these trusts to comply precisely with the state’s requirements—independent trustee, written spendthrift clause, and explicit Wyoming governing law—then coordinate the trust agreement with your Colorado revocable trust, powers of attorney, and health-care directives. As a result, probate avoidance, incapacity planning, and asset protection merge into one smooth framework.

Integrating Wyoming Entities Into Your Colorado Estate Plan

Choosing a Wyoming CLLC or asset-protection trust does not uproot your Colorado foundation; it reinforces it. Real-world coordination happens in three layers:

1. Ownership alignment – Your Colorado revocable living trust holds the membership units of the Wyoming CLLC or receives discretionary benefits from the Wyoming asset-protection trust. The alignment keeps Colorado probate courts out of entity governance while maintaining Wyoming creditor shields.
2. Tax reporting clarity – Braverman Law works with your CPA to ensure federal tax returns reflect any election (partnership, disregarded entity, or S-corporation) and to confirm Colorado remains your tax home. Wyoming’s lack of income tax never jeopardizes your Colorado filing obligations.
3. Succession continuity – Successor-trustee provisions in your Colorado documents dovetail with Wyoming statutory agents and successor managers in the CLLC. Your heirs step into pre-established roles without courtroom drama or emergency motions.
   By viewing your affairs through a two-state lens, the firm delivers a sturdier plan than either jurisdiction could offer alone.

The Braverman Law Process: Clear Steps From Idea to Implementation

Every asset-protection engagement moves through four predictable stages, each with its own purpose and ending point.

• Discovery Call – Fifteen minutes confirm fit and outline goals, giving you immediate clarity on whether a Wyoming component makes sense.
• Design Meeting – You review proposed structures, choose trustees and managers, and approve funding strategies. Plain-language diagrams replace thick binders of legalese.
• Signing & Funding – The firm prepares Wyoming filings, operating agreements, and trust deeds simultaneously with Colorado wills, revocable trusts, and deeds. Bank and brokerage accounts move into the structure under attorney guidance.
• Ongoing Maintenance – Annual check-ins, Wyoming filings, and Colorado document reviews keep everything current as laws and life change.
  Each phase ends with an action summary so you remain in control and never wonder about next steps.

Common Questions From Colorado Families

Will moving assets to Wyoming trigger Colorado tax or reporting obligations?
No additional Colorado tax arises merely from forming a Wyoming entity. You continue filing Colorado returns as usual; the entity appears on Schedule E or a K-1, just like an in-state LLC.
Can a Wyoming asset-protection trust protect my primary residence in Denver?
Yes, provided the deed transfers to the trust and you observe the four-year seasoning period. You keep the right to live there through a carefully drafted occupancy agreement.
Does a Close LLC need a Wyoming-based bank account?
Not necessarily. Many clients keep operating accounts with Colorado institutions. The operating agreement simply states that banking location does not affect governing law.

Take the Next Step Toward a Two-State Safety Net

Colorado courts administer probate efficiently, yet they cannot match Wyoming’s privacy and creditor deterrence. When you add a Wyoming entity to your Colorado estate plan, you combine home-state familiarity with frontier-state strength. Diedre Wachbrit Braverman stands ready to craft that hybrid shield without outsourcing or split billing.
Request your complimentary copy of Shielding Family Wealth With Wyoming Close LLCs to learn more about how these entities function. Then schedule a strategy session to discuss whether a Wyoming Close LLC, a Wyoming asset-protection trust, or both belong in your estate plan. Call (303) 800-1588, or use the secure contact form on our site. Protect today, sleep better tonight, and leave a stronger legacy tomorrow.

Why the Exemption Will Shrink on January 1, 2026

The Tax Cuts and Jobs Act doubled the estate-tax exemption for 2018-2025. By statute, that increase sunsets at the end of next year, restoring the old $5 million base indexed for inflation. Put differently, every dollar of your estate above the new threshold could face a 40 percent federal tax unless you plan ahead. Colorado has no state estate tax, but families with property or relatives in taxing states (Washington, Oregon, Minnesota, and others) can face an even steeper bill.

Why You Shouldn’t Count on Congress

• Political football – Estate taxes polarize voters, so each party uses the exemption as a bargaining chip. One session may raise the limit; the next can reverse course.
• Budget pressure – Rising federal debt makes permanent repeal unlikely. Estate taxes raise a modest but politically convenient stream of revenue.
• History repeats – When the tax disappeared in 2010, families scrambled. It came back in 2011 with a $5 million exemption, climbed to 40 percent in 2013, and has shifted almost every time Congress changes hands.

Counting on repeal is like selling a safety net because the circus might remove the tightrope. Braverman Law Group encourages clients to assume the exemption shrinks and craft estate planning documents that pivot if lawmakers surprise us.

Couples: Build Choice into Your Trusts

Married Coloradans enjoy two exemptions—one per spouse—but only if the survivor claims both. Traditional “A-B” or bypass trusts automatically sheltered the first spouse’s exemption. Those older trusts still work, yet they can lock unnecessary assets in an inflexible bypass share if the exemption rises.

A disclaimer trust or other flexible marital trust solves the problem. Here is the simplified sequence:

1. At the first spouse’s passing, everything moves to the survivor outright.
2. Within nine months, the survivor decides how much to disclaim into a bypass trust that uses the deceased spouse’s exemption.
3. Assets the survivor keeps remain in the marital estate; assets disclaimed grow outside the taxable estate.

Because the decision happens after death, the survivor tailors the bypass amount to the exemption in force that year. If Congress unexpectedly lifts the limit to $14 million, the survivor can disclaim little or nothing. If the exemption tanks, the survivor can shelter the full allowable amount.

Advantages of a disclaimer-style plan include:

• Post-mortem flexibility—no guessing today what Congress will do tomorrow.
• Continued basis step-up for assets the survivor keeps, helping cut future capital-gains tax.
• Added creditor and remarriage protection for property inside the bypass trust.

Individuals: Blend Charitable Gifts with Heirlooms

Single clients do not get a second exemption, so planning tools differ. A taxpayer whose estate may exceed $6-7 million in 2026 can combine lifetime gifting and charitable strategies to trim the taxable balance.

• Annual exclusion gifts – You can give up to $18,000 per recipient (2024 limit) each year without touching your lifetime exemption. Shifting appreciating assets like business interests or growth-oriented funds removes future gains from your estate.
• Irrevocable life-insurance trusts (ILITs) – Holding life-insurance proceeds outside the estate provides liquidity for heirs to pay any tax owed, rather than selling illiquid property under time pressure.
• Charitable remainder trusts (CRTs) – A CRT lets you transfer low-basis stock or real estate to a trust, receive an income stream for life, and snag an immediate income-tax deduction. The present value of the remainder for charity leaves your estate at once.
• Donor-advised funds (DAFs) – A DAF delivers an up-front deduction while allowing you to direct gifts to favorite charities over years, keeping philanthropic control yet shrinking your taxable estate today.

Designing these tools now, while the exemption is high, moves appreciation beyond the reach of the 40 percent bite—even if lawmakers never touch the tax again.

The Countdown to December 31, 2025

Starting today, there are a few things you should keep in mind.

• Update asset values—include life insurance, business interests, and real-estate appreciation.
• Draft or revise trust documents—add disclaimer or flexibility clauses, formula funding, and reliable successor trustees.
• Run projection scenarios—model different exemption levels so you know how close you are to a potential tax.

Six to twelve months out,

• Obtain appraisals for hard-to-value assets such as closely held businesses or out-of-state property.
• Implement lifetime gifts or fund charitable vehicles early enough to avoid valuation disputes.

Last quarter of 2025,

• Finalize large gifts that rely on the higher exemption. The IRS has confirmed that gifts made before the sunset keep the benefit even after the exemption falls.
• Confirm trustees and agents so they can act quickly if the unexpected happens.

Common Questions

If I give assets away now and Congress keeps the high exemption, did I waste my shield?
No. A gift today uses your current exemption, which the IRS will not claw back. If lawmakers extend the larger amount, you still have whatever exemption remains for additional gifts or transfers at death.

Do flexible trusts trigger probate?
When properly funded, your trust avoids Colorado probate as effectively as any traditional revocable or bypass trust. Asset titling, not trust style, determines probate exposure.

Could Colorado adopt its own estate tax?
No bill is pending, and the legislature shows little appetite. Still, other states added estate taxes quickly when budgets tightened. A plan that works federally will usually outmaneuver a new state levy.

Next Steps: Build a Plan That Adapts as Fast as Congress Shifts

Waiting for Washington to settle the estate-tax debate hands control of your legacy to politicians who change course every election cycle. Crafting flexible trusts, strategic gifts, and charitable components now gives your family certainty regardless of who occupies Capitol Hill.

Braverman Law Group has guided Colorado families through estate-tax swings for more than two decades. Ouor Boulder estate planning lawyers design plans that let surviving spouses dial protection up or down and help individuals use charitable tools to keep more wealth where they want it. Schedule a strategy session today, and take command of your estate before the window narrows. Call (303) 800-1588 or fill out our secure contact form to get started.

What is an Estate Tax?

By definition, an estate tax is a tax levied on the net value of a decedent’s estate. The federal government imposes this tax before beneficiaries can inherit the decedent’s assets. Fortunately, the state of Colorado does not impose a state tax in addition to the federal government’s estate tax. Other states, such as Maryland, New York, and Oregon, do impose an additional estate tax.

What is the Estate Tax Exemption Amount?

In 2025, the estate tax exemption amount is $13.99 million. This amount is up from $13.62 million in 2024. For married couples, the estate tax exemption amount is $27.98 million. This means that any individual with less than $13.99 million in assets does not have to pay any estate tax. It is worth noting that this threshold amount is not just how much cash a person has upon death, but instead the value of their entire estate, including real property, investment accounts, and retirement accounts, minus any pertinent gifts.

The federal government decides how much to tax each estate based on how much more than $13.99 million the estate contains. For those with between $1 and $10,000 more than $13.99 million, the tax rate on the additional estate value is 18 percent – however, the government only taxes the amount that surpasses the threshold. For estates with $1 million more than $13.99 million, the tax rate is a whopping 40 percent. As the estate’s surplus (or its amount over $13.99 million) increases, so does the estate tax rate. 

How is the Estate Tax Exemption Expected to Change? How Can You and Your Loved Ones Prepare?

On January 1, 2026, the amount that a person can pass on at their death without the estate tax will change to a number between $6 and $7 million. There is also chatter in Congress of bringing back the “Trump tax cut,” which is what originally brought the exemption amount to $13.99 million this year. There is also talk, at least among some politicians, of removing the estate tax entirely.

But here is what is really going to happen: parties and politicians will continue to play political football. There is no way to accurately predict how the estate tax rate will evolve over time. The wise planner prepares for a variety of possible exemption amounts at their death, retaining an expert estate planning attorney to help them do that as thoroughly as possible.

For couples, an informed estate planning attorney can help you set up a trust that allows the surviving spouse to decide how much needs to be protected from the estate tax. This kind of trust can be a powerful tool for couples with high net worths, and especially with clear communication as a couple ahead of time, the trust can then help wealth pass onto future generations.

For individual people, it can be helpful to add charitable beneficiaries that will receive donations if the estate becomes taxable. This means that if the estate hits above the federal government’s threshold amount, the estate will start to give to the decedent’s charity of choice. Not only does this tool benefit the community, but it also allows the estate to avoid the federal estate tax altogether. Other tricks and tools might be available to you and your estate, depending on your personalized goals, needs, and priorities.

The Takeaway

Overall, our advice is this: do not count on any party to eliminate the estate tax. The government eliminated the tax in 2010, and unfortunately, it came roaring back the next year. While it can be tempting to plan as if the tax will be nonexistent, it is far better to plan or a variety of circumstances and work closely with an estate planning attorney to make sure you do everything in your power to protect your hard-earned assets. With the right legal team by your side, you can look out for yourself and your heirs in both the short-term and long-term future.

Do You Need a Boulder Estate Planning Attorney on Your Team?

When looking for a Boulder estate planning attorney, you should seek out a team that is experienced, informed, and trusted by the community. With so many changes in the political and legal landscape, it is crucial to stay in close contact with your estate planning attorney so that you can keep your estate plan in line and intact with our ever-changing world.

At Braverman Law Group, we always say that informed choices lead to peace of mind. Our team specializes in helping our clients make thoughtful decisions regarding their estate plans so that they (and their loved ones) can rest assured, knowing they have done everything in their power to prepare for the future. If you don’t yet have a Boulder estate planning attorney to help you navigate the estate planning process, consider our firm at Braverman Law Group. We have years of experience creating customized estate plans for our clients and their families, and we would be honored to do the same for you.

For a free, no-obligation consultation with one of the Boulder estate planning attorneys at our firm, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

The UTMA

UTMA stands for the Uniform Transfers to Minors Act. This Act is a federal law that allows children under the age of majority to receive gifts without any help from a guardian. While the gifts can come in the form of money, they can also come in the form of property, paintings, patents, and royalties.

Importantly, the UTMA allows minors to avoid tax consequences on the money held in their account. If you decide to use the UTMA to gift money to your child, you will also appoint a custodian whose job is to manage the account until your child is of legal age. Also of note is that the funds in a UTMA are part of the donor’s taxable estate until your child turns 18 and takes control of the assets.

The 529

The 529 is specifically designed to help individuals save for college. When you put money into a 529 account, the money is free from tax consequences. When it comes time to withdraw money for your child’s educational expenses, you can also take that money out without suffering tax consequences. While many parents use a 529 to cover college expenses, you can also use a 529 to pay for private school for your child while he or she is younger. The 529 can go toward tuition, as well as room and board, required supplies, and additional fees that a school might impose.

The Trust

Establishing a trust is a third popular option for saving for a child’s future. If you put money into a trust, you name a trustee whose job is to take care of the trust’s assets. You can then direct that trustee to use the trust in the specific way you intend for it to be used. For example, you can instruct your trustee to only distribute funds to your children for educational purposes, or to distribute funds according to a set timeline.

Assets in trusts are typically protected from outside creditors. The trust also allows for significant flexibility, as the trustor (the person funding the trust) has total power to decide the terms on which the trust operates.

Which Option Should I Use for My Child or Children?

There are several things to keep in mind as you decide which tool to use for your kids. We recommend thinking through the following questions:

What is your goal with the account?

Keep in mind that a trust allows for maximum flexibility, meaning your goal can be as specific or broad as you want it to be. A 529, on the other hand, is limited to educational spending, while a UTMA lets your child have total access to the funds when they become of legal age.

How much control do you want over the account?

Once you appoint a trustee for your trust, you cede control to that person or entity. However, the trustee still has a fiduciary duty to operate the trust according to your wishes. With a 529, you as the parent are the owner of the account, and you have total control over how to use the funds. For a UTMA, you can name yourself as the custodian, as long as you understand that this means that the money will be part of your estate when you die.

What tax benefits are you looking for?

Trusts are often subject to the same taxes as individuals. The federal government sets trust income tax rates, which are important to keep in mind if you are considering setting up a trust. The 529 carries significant tax benefits, as it both grows tax-free and can be used without tax consequences. For money in a UTMA, the government will not tax the first $1,300 in the account. The next $1,250, however, is taxed at a child’s rate (which should be lower than the normal rate).

How much do you want to prioritize an easy set up?

Trusts are relatively complex in terms of set up and maintenance. It requires time and effort to retain an attorney to draft a trust document, name a trustee, and file annual tax returns. A 529 and a UTMA, on the other hand, are relatively simple to both set up and maintain.

Are You on the Lookout for Your Boulder Estate Planning Attorney?

Figuring out the right plan for you requires thoughtful planning and careful execution. By hiring an experienced Boulder estate planning attorney, you can ensure you choose the right option for your family’s needs. When it comes to your kids, you want to make sure you are making the most informed decisions possible, and a high-quality Boulder estate planning attorney can help keep you on the right track.

At Braverman Law Group, we understand that family values often lead the way in terms of deciding what to prioritize in your estate plan. As a parent, you want to take any steps possible to ensure your kids’ financial success. Our firm of Boulder estate planning attorneys understand this desire and are well-poised to advise you on how to best achieve your goals. We have the right combination of experience, empathy, and engagement with our client community to know how to represent your interests well.

For a free, no-obligation consultation with one of the Boulder estate planning attorneys at our firm, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

What is the Gift Tax Exclusion?

The gift tax exclusion refers to an amount of money that each person can legally gift another person over the course of one year without being taxed. Typically, a large cash gift would require the giver to report the money for tax purposes, and a significant chunk of the gift would go toward a government tax. The receiver would therefore end up with less money than the giver originally intended, once the government collected its required taxes.

For 2025, IRS has announced an increase in the gift tax exclusion. In 2024, each individual could gift up to $18,000 tax-free, but in 2025, the limit is now up to $19,000. For married couples, the amount is now $38,000 per year, per recipient. This means that every married couple can transfer $38,000 to each of their children in 2025 without suffering any tax penalty.

What is the Lifetime Gift and Estate Tax Exemption?

The IRS also limits the amount of money that a taxpayer can gift over the course of his or her life. As of 2025, the lifetime gift tax exemption is $13.99 million. Any portion that an individual uses of this $13.99 million reduces the amount that the person can use for his or her estate tax (i.e., the more a person uses from their gift tax exemption, the less he or she can leave behind untaxed at his or her death).

Of note, this $13.99 million figure that the IRS released for 2025 is supposedly temporary. The US government has stated that after 2025, the exempted amount will go down to $5.49 million, with adjustments for inflation.

How Does the IRS Limit Gifts to Non-US Citizen Spouses?

Another way the IRS regulates an individual’s monetary gifts is by setting limits on how much one spouse can give their husband or wife who is not a US citizen. Typically, spouses can exchange money without incurring any tax penalties, but if one spouse is not a citizen, only the first $190,000 of gifts to the non-US citizen spouse is not included in the total amount of the couple’s taxable gifts.

This is because individuals without citizenship could be exempt from the typical US estate tax. When both individuals are citizens, any money above the spouses’ combined estate tax exemption ($13.99 million + $13.99 million, or $27.98 million) will be taxed when both spouses have died. It therefore does not matter to the IRS if the spouses exchange money back and forth, since they will both be taxed on the money at some point anyway. But if one spouse is potentially exempt from this estate tax, the non-US citizen spouse could amass wealth that the IRS is unable to tax. The IRS therefore caps gifts to non-US citizen spouses to keep people from avoiding estate taxes.

Why Do These Limits Matter?

The new figures from the IRS matter for several reasons. To start, they are important to note for clients who want to pass on their wealth as efficiently as possible, avoiding tax penalties along the way. If you can afford to give $19,000 to your child in 2025, for example, gifting this amount will help your child avoid incurring a tax on these same monetary assets when you die.

The figures also hold weight for individuals thinking about their estate plans. For those wanting to meet this $13.99 million figure, time is limited, and it is worthwhile to speak with a Boulder estate planning attorney as soon as possible to figure out how to lock in the higher figure. For those with a spouse who is not a US citizen, it is helpful to consult an attorney that can help you think through how to ensure both spouses’ long-term economic success.

It is prudent to update your estate plan after every major life event, or every three to five years if you do not experience a change in life circumstances. These 2025 IRS figures are part of the reason it is smart to make sure your estate plan is updated, so that you can account for these shifts as you make plans for the future.

Do You Need a Boulder Estate Planning Attorney by Your Side?

As the estate planning landscape continues to change, so do best practices for your estate planning process. At the Braverman Law Group, one of our focus areas is staying abreast of any changes in the law so that we can best advise our clients on how to proceed. In this day and age, it can be tempting to use the internet for fast facts or for legal advice, but from our perspective, there is no replacement for personalized, experience-based, thoughtful legal services that have your best interest in mind.

If you need a Boulder estate planning attorney by your side, consider our Boulder Valley firm. We believe that each estate plan demonstrates the testator’s love and thought and care, and we are committed to providing personalized legal counseling for our clients throughout Colorado. Our experience, empathy, and commitment to excellence give our client community peace of mind when they need it the most.

For a free, no-obligation consultation with one of the Boulder estate planning attorneys at our firm, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

The City of Boulder

As anyone who lives in Boulder already knows, our city attracts people from all over the country with our proximity to Denver and to the Rocky Mountains. We are also home to the University of Colorado Boulder, the largest campus of the University of Colorado system. According to the 2020 census, Boulder is home to 108,250 people. We have over 46,000 acres of open space and 155 miles of open space trails, making us one of the most popular destinations for outdoor enthusiasts across the United States. With so much to offer, it’s no wonder Boulder is experiencing an influx of both people and diversity.

Age Diversity

Because we are a college town, plenty of young people choose to live in Boulder. We have college-aged students, but we also have young graduates who fall in love with Boulder and decide to stay here, raising their family and starting their careers. Of note, however, Boulder has had more older individuals move to the area in recent years. Experts surmise this increase in age diversity is due, in part, to the retirement-friendly lifestyle that is possible in the town of Boulder. Older individuals are attracted to the possibility of living an active life with plenty of amenities.

Racial Diversity

Besides age diversity, Boulder has also seen an influx of racial diversity in the past decade. Between 2010 and 2022, for example, the Asian population in Boulder increased .9 percentage points, ending up at 5% of the total Boulder population. While the white population occupied 79.4% of the population a decade ago, it now occupies a lesser 76.9% of the population. While these shifts can seem small, in a town with 108,250 people, every percentage point makes a difference in the makeup of our town.

Career Diversity

Small businesses and start-ups make up the majority of the employers in Boulder. As our diversity increases, so do opportunities for employment. The Boulder Chamber Economic Council estimates that there are 8,800 employers and 120,000 jobs in Boulder. The top industries include aerospace, bioscience, and outdoor recreation. These industries continue to expand as our town, and our town’s diversity, expand along with them.

Estate Planning in a Diverse Town

As Boulder continues to evolve, so do the legal needs of the town’s residents. Older individuals, for example, are often focused on passing wealth onto the next generation, and a solid estate plan can help them do that. Younger people, on the other hand, are focused on building up wealth; even in this phase of life, it is important to have an estate plan that can protect this wealth should the worst-case scenario arise.

As our town evolves, residents also have the opportunity to feel the economic benefit that more diverse demographics provide. In Boulder, we have more restaurants, activities, and entertainment venues than ever. If you have benefited from the influx of activity as a member of the Boulder economy, it is important to make sure that you have an estate plan that matches your level of success. By updating your estate plan every three to five years (or after every major life event), you can ensure that your plan fits your current needs and goals.

Why Call a Boulder Estate Planning Attorney?

A Boulder estate planning attorney can help with things like drafting a will, forming a trust, establishing powers of attorney, crafting a strategy to avoid probate, and planning for future generations. There are also benefits to talking through services such as special needs planning and even planning for the future care of pets.

Our city is changing every day, and so are our clients’ priorities. In this always evolving landscape, you need an estate planning attorney that will offer personalized services that specifically work for you. Too often, our clients come to us having had difficult experiences with huge estate planning firms or with DIY wills online. In order to make sure you receive the care and attention you need, retain a legal team you can trust – and, importantly, a legal team that is ready to adapt to the changing world around us.

Do You Need a Boulder Estate Planning Attorney by Your Side?

If you have not yet spoken with a Boulder estate planning attorney to talk through your options, give us a call today at the Braverman Law Group. At our firm, we treat every individual client with the care and attention they deserve, because we recognize that estate planning is not a “one size fits all” business. Our experience in the field combined with our thorough approach make us well-positioned to be your choice for estate planning legal services, and we would be honored to help you and your loved ones navigate the process. Our mission is to offer an estate planning journey that is not just effective but also enriching. With Braverman Law Group, LLC, you are not just planning for the future; you are building a legacy.

For a free, no-obligation consultation with one of the Boulder estate planning attorneys at our firm, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

In Colorado, few people know that dementia patients can actually express wishes to terminate medical treatment via an advance directive, even though this fact is not explicitly listed in the relevant statute. On today’s blog, we cover some of the basics regarding the advance directive, as well as how it is relevant for those being treated for dementia. As always, we recommend that if you would like to learn more about how these general principals apply specifically to you or a loved one, you should contact an experienced Boulder estate planning lawyer that can help you apply the law to your set of circumstances.

What is an Advance Directive? Why Does It Matter?

An advance directive is a legal document that informs your medical providers about how you would like them to approach your medical care if and when you are unable to make decisions on your own behalf. Advance directives are hugely beneficial for dementia patients, since many times, these patients are unable to articulate their preferences for treatment as their condition worsens.

Advance directives in Colorado are governed by the Colorado Revised Statute § 25.5-4-413. In the statute, lawmakers specify that advance directives include “any written or oral instructions…concerning the making of medical treatment decisions on behalf of or the provision of medical care for the person who provided the instructions in the event such person becomes incapacitated.”

At the Braverman Law Group, we always recommend that you create your advance directive in direct consultation with your physician in order to ensure your instructions are in line with your best medical interests. There are so many options for dementia treatment, and fortunately, research is advancing every year. By collaborating closely with your care team to create your directive, you can ensure the document is tailored to your needs and not just to the general public.

Possible Provisions in Advance Directives

Advance directives can include (but are not limited to) medical durable powers of attorney, durable powers of attorney, or living wills. A power of attorney document allows a specified individual to handle matters on your behalf, whether medical or financial. If the power of attorney is durable, it means that the authority remains in effect if the person giving the authority becomes incapacitated. A living will, on the other hand, specifically states a person’s preferences for medical care if he or she is unable to make decisions on his or her own behalf.

Expressing Wishes to Terminate Medical Treatment with Dementia

One important part of an advance directive that you can consider is the possibility of including a desire to terminate medical treatment. Specifically, a person with dementia has the legal right to limit or refuse medical treatments. For example, some dementia patients find themselves in need of a respirator, a feeding tube, IV hydration, or CPR toward the end of their lives; under an advance directive, you could inform your medical team ahead of time that you do not want to go under any or all of these treatments. Your doctor might also ask your loved ones if they want to provide you with palliative care, which aims to improve a patient’s quality of life instead of treating the underlying illness. Similarly, hospice care is directed toward keeping patients comfortable during the final stages of their lives. If you would like to preemptively refuse any or all of these treatment options, you have the right to do so under your advance directive.

Drafting Your Advance Directive: What to Keep in Mind

One important thing to remember if you have recently received a dementia diagnosis is that it is sensible to draft your advance directive as early as possible. It is crucial to create the directive while you have the mental cognizance to decide how you want to tailor your medical treatment.

We also recommend that you communicate early and often with your loved ones about what your advance directive includes. That way, if and when your family members need to reference your directive, they can be both emotionally and mentally prepared to execute the plan you have laid out. You should also make sure that all of the necessary parties have a copy of your advance directive: your family members, your doctors, and your attorneys should all have accessible copies of the finalized document.

It is also important to retain an experienced and trustworthy Boulder estate planning lawyer to create your advance directive. There are certain procedural requirements for every advance directive in Colorado. If your loved ones learns down the road that your directive is not actually legally valid, it can make it even more difficult to honor your wishes.

Do You Need a Team of Boulder Estate Planning Lawyers by Your Side?

At the Braverman Law Group, we take pride in offering empathetic, thorough legal services to our clients, no matter their circumstances or stage of life. We take care of all of the important legal hurdles in the estate planning process so that you can spend your time and energy on what matters most – being with the people you love. If you are looking for a committed team of attorneys to provide personalized counseling, clear explanations of complex concepts, and powerful execution, then we just might be the group for you.

For a free, no-obligation consultation with one of the Boulder estate planning attorneys from our firm, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

Overview of the Study

Leading teams of neurologists at six different research centers teamed up to conduct this study, which they then published in August 2024. The study looked at hundreds of patients with some kind of brain damage – the damage could have been from a car accident or another incident that resulted in severe trauma to the patient’s head. All of the patients were deemed “unresponsive” – this means that doctors determined that they were either in a vegetative state or were “minimally conscious.” For many individuals, this in turn meant that they were in a sort of “in between” state: their eyes might have been open, but they were not responding in a traditional sense to any triggers in the outside world.

The Study’s Results and Its Implications

According to the study’s results, 25% of the patients that the researchers examined had brain activity typical of individuals with full consciousness. The study’s leaders asked the brain-damaged patients to complete somewhat complex mental tasks while they were in their vegetative state, such as imagining themselves playing a sport. Upon studying images of the patients’ brains after posing these questions, the scientists noticed that a quarter of the patients showed clear signs of brain activity suggesting they were aware of the prompt and actively engaging in the exercise. The researchers compared the brain-damaged individuals’ brain activity to healthy individuals’ brain activity, and they employed qualified statisticians to help them understand the results that they obtained.

The study took almost a decade to carry out, and already doctors are already signaling that the research is cutting edge. One prominent neurologist indicated that “it’s not ok to know this [information] and do nothing.” Experts in the field are abuzz and equipped with new perspectives on limited consciousness, as well as with new hope that many brain-damaged patients are faring better than we once believed. Because these patients’ brains are more active than doctors previously understood, there may be more we have yet to understand about these individuals’ medical conditions.

The study could have significant results for the medical community. Typically, when a doctor informs a patient’s loved one that he or she is incapacitated, the family loses hope. This study, however, may open the door to rethinking how these patients could recover. In fact, it may suggest that a larger percentage of the patients could reach a fuller recovery, which in the past has been outside the realm of possibility.

Advance Declarations and Estate Plans

The study could also have significant ripple effects in the legal community; for example, it might have an impact on individuals that are currently thinking about their estate plans. One essential part of an estate plan is an Advance Declaration, which is a legal document providing instructions for your medical care. The instructions only go into effect when you are incapacitated and unable to communicate your preferences (i.e., the instructions are not relevant as long as you are fully aware and capable of making decisions for yourself). The Declaration could include provisions such as what kind of treatment you prefer, whether you should be resuscitated in an emergency, who should make decisions on your behalf (both medically and financially), and how doctors should proceed if you are in a vegetative state.

The research has not yet been translated to tests that can be used for patients today. But clients who want to take advantage of this research can change their Advance Declarations to modify how long they stay in a persistent vegetative state or to demand one of these tests when they do become generally available. Clients even have the option of stating that life support should not be removed until this test is conducted, even if that results in a wait of many years.

In the end, each person must make his or her own decision about how to formulate their estate plan based on their own goals and preferences. Because of the groundbreaking nature of this study, though, many might want to rethink some parts of their estate plan, especially as science continues to help us understand and make advances that we had previously not thought possible. Whether or not you might want to use this study to inform your own estate plan, it is critical to speak to a Boulder estate planning attorney that can help you understand your options and think through how you and your family might want to move forward.

Are You Looking for a Boulder Estate Planning Attorney for You or a Loved One?

To learn more about Advance Declarations and how this trailblazing study might apply to your own estate plan, give us a call today at the Braverman Law Group. We are a team of experienced, empathetic, thorough Boulder estate planning attorneys, and our years of experience in the field make us well equipped to advise our clients on how to proceed in the midst of uncertain situations. To make sure you, your family, and your loved ones are well taken care of, get the best team of Boulder estate planning attorneys in your corner – at Braverman Law Group, we are proud to offer the highest quality services for our beloved Colorado community.

For a free, no-obligation consultation with one of our Boulder estate planning attorneys at Braverman Law Group, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

Legal Landscape Pre-Connelly

As the legal landscape stood before the Connelly decision, it was common for companies with business succession plans to include the use of life insurance policies to fund a buy/sell agreement. In the past, case law has allowed estates to exclude insurance proceeds when valuing business interests in buy/sell agreements. This reality, in turn, has allowed companies to account for life insurance policies without having to worry about the Internal Revenue Service (IRS) including these policies as part of their business valuations. When the life insurance policies were excluded, businesses’ estate tax bills were necessarily lower. This is the background against which the Supreme Court decided Connelly on June 6, 2024.

The Decision

In its decision, much to business owners’ dismay, the Supreme Court decided that insurance proceeds should actually be included in a business’s valuation. According to the Court, an insurance payout in this context is interconnected to the business structure itself, and therefore it makes sense to value the business with the insurance payout in mind. Because life insurance policies have not traditionally been included in business valuations, the decision marks a huge shift in how businesses will think about the value of their company and the way they formulate their estate plan. It is worth noting that because the decision came out of the Supreme Court, it affects all businesses across the country – no district or state is immune.

The Implications of the Decision

How, then, should businesses proceed post-Connelly? What makes sense as a next step? To start, each business will have to make a decision on how to draft their estate plan in coordination with an experienced estate planning attorney. Estate planning attorneys are accustomed to changes in the law, and they will be able to give advice on how to redraft a compliant and creative estate plan in light of the Connelly decision.

With that in mind, businesses will have several options moving forward. First, businesses could shift from redemption agreements to cross-purchase agreements. The difference between the two types of agreement is critical: in a redemption agreement, the company’s interest would necessarily be included with the value of the business. In a cross-purchase agreement, by contrast, the company has no interest in the decedent’s life insurance proceeds. Instead, in a cross-purchase agreement, co-owners hold life insurance policies on each other in order to fund the agreement.

Business owners could also explore the possibility of increasing insurance coverage to fund the business’s purchase price as well as any tax burdens that come along with it. This could allow owners to keep their current structure in place; it just becomes more expensive for businesses to cover the cost of their insurance.

There are also different choices that businesses could make apart from the more obvious cross-purchase agreement, if business owners do choose to opt for restructuring their ownership agreements. One example is an irrevocable life insurance trust, which allows businesses to own policies outside of their estate. In general, businesses should be looking for options that avoid reliance on more traditional models, which have tended to assume that life insurance policies would not be part of the overall business valuation. Businesses should be looking for ways to keep their tax burden down even as the Supreme Court has made this more difficult in a post-Connelly world. While this can be frustrating to navigate, the circumstances can also offer an apt opportunity to review business structures and their overall estate plans.

Reviewing Your Ownership Agreement: Is Now the Time?

The Connelly decision represents only one reason that we think it is smart to take the time to review your business’s ownership agreement now. As the end of the year quickly approaches, businesses should also be taking stock of their current structures and making sure everyone is on the same page before the new year. As you review your business’s ownership agreement, we offer two pieces of advice to keep in mind: 1) communicate early and often with all involved parties and 2) retain expert estate planning services as you think through new possibilities. If you can accomplish both of these goals, you can make sure your ownership agreement is both cohesive and thorough, both agreeable to all involved and methodical in its approach.

Call a Boulder Estate Planning Attorney to Discuss Your Next Steps Today

Because the US v. Connelly decision is so recent, and because businesses are still trying to figure out navigate a post-Connelly estate planning world, it is the perfect time to get in touch with an experienced Boulder estate planning attorney. At the Braverman Law Group, we believe that informed choices lead to peace of mind for our clients. That is why we always take the time and energy to walk each client through their estate planning options, tailoring our advice to each person’s goals and circumstances. Our team works hard to deliver results for our clients, because we care about providing the highest quality representation possible.

For a free, no-obligation consultation with one of our Boulder estate planning attorneys, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. Our firm covers estate planning, trust administration, special needs planning, Medicaid planning, and more.

The Will

By definition, a will is a legal document. It contains an individual’s wishes and instructions for what should happen with their assets after they die. A will can include instructions for cash, bank accounts, investment accounts, real estate, personal belongings, and more. A will can also include provisions such as funeral instructions, pet care instructions, and social media account information.

The Trust

In contrast, a trust is a legal contract. In the trust, one party (the trustor) gives another party (the trustee) the right to manage and control his or her property. Each trust generally contains a purpose; that is, your trust might be set up for your children’s education, for your grandchildren’s future wellbeing, or for your charitable giving. The trustee’s job is to distribute the trust’s assets only in accordance with the trustor’s stated purpose.

Difference #1: Probate

The first major difference between the will and the trust is that if you choose to primarily use a will in your estate plan, that document will need to go through the probate process. This means that after you die, a judge will look at your will, decide if it is valid, and eventually approve the distribution of assets. This process can take time and money, and beneficiaries sometimes wait months to receive the money and property their loved one left behind.

A trust, however, is exempt from probate. If you leave assets in a trust, the trustee is solely responsible for distributing the assets; the probate court is not involved. This way, when you pass, your loved ones can receive your assets more quickly. You can also avoid having to put any document on the public record, as you might have to do in probate court. A trust therefore ensures a degree of privacy that a will cannot.

Difference #2: Varieties of Trust

A second important difference between the will and the trust is that the trust provides a diversity of options that the will does not provide. There are several major types of trust: revocable trusts, which can be changed at any time; irrevocable trusts, which cannot be changed but which offer stronger protection from third parties; and testamentary trusts, which take effect only after the trustor dies.

Trustors create trusts for reasons beyond estate planning, and trusts can be valuable tools that trustors use throughout their lifetimes as well. While we won’t go in depth today on the different ways to structure a trust, it’s important to realize that the trust is an adaptable instrument and can help trustors achieve goals well beyond passing assets to the next generation. If you want to learn more about the different kinds of trusts and how they might serve you, ask your Boulder estate planning attorney about how to set up a trust for purposes such as charitable giving, special needs planning, credit shelter, or asset protection.

Difference #3: The Cost

Although this is not always true, we often find that clients spend more money setting up a trust than they do a will. While the resources can often be well worth it in the end, some clients prefer to draft a will instead of establishing a trust, in order to spend less time and less money on their estate planning processes. At the end of the day, though, complex estates often warrant the cost of the trust, since the trust can be easily tailored to fit the needs of those with more complex assets. For purposes of estate planning, “complex” assets might include business interests, investment accounts, or a real estate portfolio.

Difference #4: The Protection

A last major difference between the will and the trust is that the trust can more easily shield your assets from judgments against you. If you are facing significant debts, the reality is that third parties can collect on these debts after you die. By securing assets in a trust, though, third parties are generally unable to access the money, leaving you with more protection and more peace of mind.

The decision of whether to use a trust or a will ultimately depends on your personal goals and assets. These differences are just a few of many, and there is always more to learn about estate planning in Colorado. Before you definitively decide on what’s right for you, we recommend you take the time to think through your options carefully and holistically.

Trusts are also more private than wills. This is because, in a will, the beneficiaries’ name, addresses, ages, and inheritance are all public record. As a result, companies can scrape the public records to obtain this information, which is often used for unsolicited marketing on other undesirable means. Simply put, a trust prevents against this misuse of information.

Speak With a Boulder Estate Planning Attorney Today

If you have questions about your estate planning process, contact the Braverman Law Group today. At the Braverman Law Group, we understand that making decisions about your estate plan is no easy matter. We take pride in our thorough approach, and we make sure every client understands the options available to them so that they can make the most informed decision possible regarding their financial future. If you want to make sure your loved ones are well set up after you are gone, you need to rely on a Boulder estate planning attorney you can trust. Our team at Braverman has years of experience navigating estate planning, probate, special needs planning, trust creation and administration, and Medicaid planning. If you want the best team of attorneys by your side, we are the group for you.

For a free, no-obligation consultation with one of our estate planning attorneys, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have one of our Boulder estate planning attorneys reach back out to you as soon as possible.

How Does the IRS Calculate RMDs?

To make things simple, there are calculators you can use to figure out how much you need to withdraw from your IRA when you turn 73 years old. The calculator works by dividing your account’s year-end balance by your current year’s life expectancy factor. The IRS has what it calls a “Uniform Life Expectancy Table,” where it assigns you a life expectancy factor based on your current age. As you get older, your life expectancy goes down, so the denominator of your calculation will also go down. It follows that an older person with $100,000 in his IRA will have to withdraw more money than a younger person with $100,000 in his IRA.

There is, however, an exception to this method of calculation. The exception applies if you have a spouse that is over 10 years younger than you and that is named as the full beneficiary of your account for the whole year. In this limited scenario, the IRS uses a “Joint Life Expectancy Table” instead of a “Uniform Life Expectancy Table.” Your combined life expectancy with your spouse will be smaller, which of course means your RMD is then lower.

Of note, you can always withdraw more than the RMD requires you to withdraw. However, whatever money you do withdraw will be taxed as ordinary income, so few people decide to exercise the option to take more than necessary.

Which Accounts Require You to Take RMDs?

In general, the following types of IRAs are subject to RMDs: traditional, rollover, inherited, simplified employee pension, and savings incentive match for employees. Qualified retirement plans are also generally subject to RMDs. Roth IRAs, on the other hand, are almost always exempt from the requirement.

It is important to understand that account owners must calculate their RMD separately for each IRA account they own. After calculating this amount, though, they can withdraw the total RMD from one single account. The exception to this rule comes into play if you own a 401(k) or 457(b) plan, under which the IRS requires you to take the RMDs separately from each account.

When Does the IRA Require You to Take RMDs?

In short, you must start taking RMDs when you turn 73. This means that your deadline is December 31 in whichever year you have your 73rd birthday. You can also, however, delay the process and take your first RMD the next calendar year – as long as you take it by April 1 of that following year. Your deadline for a second RMD is December 31 of the year after you turn 73. For this second deadline, there is no option to delay.

What Happens if You Don’t Take an RMD?

The IRS imposes penalties for those that do not take their RMDs. If you miss the deadline for your RMD, you will face a 25% excise tax on your RMD withdrawals. If you correct the error quickly, however, it is possible to get this tax lowered to 10%. Either way, the penalty is harsh if you fail to abide by the IRS’s deadlines.

What Are the Options for Receiving an RMD?

You can take your RMD in the form of a lump sum or in the form of smaller payments. You can also schedule the payments to hit your bank account automatically over a period of time. If you do not want your RMD as cash, you can immediately put it in an investment account or a trust that you have set up. You might also choose to put the money in a high yield savings account or to give the money to a charitable cause. As always, with questions about this process, you should contact a wealth advisor or estate planning attorney that can help you sort through your options.

There is much more to RMDs than we have included in this blog post. RMDs are complicated, and the IRS’s rules on RMDs are frequently changing. At Braverman Law Group, we don’t recommend you try to go it alone. The tax penalties are too high, and when there is a lot at stake, you need an expert in your corner. Because RMDs change so significantly from person to person, from circumstance to circumstance, your best bet is making sure you have sound, experienced advice available to you about how to navigate this complex process.

Speak With a Boulder, Colorado Estate Planning Attorney Today

RMDs should factor into how you think about your estate plan. The IRS does not allow you to keep your IRA at its full value for the rest of your life, so how does this affect how much you will leave behind for your beneficiaries? What exactly will be left when you pass? To talk through the answers to these questions, contact the Braverman Law Group today. Our firm is committed to providing personalized counseling, clear explanations, and powerful execution. We have the experience and the strategy to get you the results you need, when you need them the most.

For a free, no-obligation consultation with one of our Boulder estate planning attorneys, give us a call today at (303) 800-1588. If you prefer, you can also fill out our online form to tell us about your legal issue and have a member of our team reach back out to you as soon as possible. We cover estate planning, trust administration, special needs planning, Medicaid planning, and more.