How Lawyers Cost You Thousands of Dollars
Rule 1.3(2) of the Colorado Rules of Professional Conduct states in part : "…. a lawyer must act with commitment and dedication to the interests of the client…"
This means a lawyer must place YOUR financial interest over their own financial interest. Unfortunately, when it comes to Wills and Living Trusts, most lawyers don’t do this because it would cost them $1,000s in lost fees they can make off you and your family.
THIS IS HOW LAWYERS MAKE $1,000S EXTRA FOR THEMSELVES THAT COLORADO LAW DOESN’T REQUIRE YOU TO SPEND WHEN YOU GET A WILL OR LIVING TRUST.
The first thing you need to know is that Colorado law allows you to leave your home, all other Colorado real estate, bank accounts, stocks, bonds, life insurance, annuities and retirement to whoever you want to have it the moment you pass away without going through a Will, a Living Trust or Probate and without any legal fees. This is so simple you can do all of this yourself. This website tells you (for FREE) exactly how to do it yourself.
HOW LAWYERS CAN MAKE $1,000S OFF YOU BY PREPARING YOUR WILL:
Colorado law requires probate on all homes, all other Colorado real estate or when you leave other assets in a Will totaling $50,000 or more. Since probate can take up to a year and cost $1,000s in legal fees and other expenses, it’s smart to keep the assets listed above out of your Will to avoid probate.
Every lawyer should always tell you how easy it is to keep these assets out of your Will so you can avoid probate on them. If a lawyer doesn’t tell you this, DO NOT USE THAT LAWYER. You’ll be paying a lot of money for a Will that only makes the lawyer $1,000s more in fees by having your estate go through probate. You only need a simple Will you can make yourself if you keep these assets out of probate in most cases.
HOW LAWYERS CAN MAKE $1,000S OFF YOU BY PREPARING A LIVING TRUST:
No lawyer should suggest a Living Trust to avoid probate for any of the assets listed above because none of them have to go through probate under Colorado law if they are set up correctly which is very easy to do yourself. If a lawyer suggests a Living Trust for these assets to avoid probate and doesn’t tell you about the Colorado laws that easily keep them out of probate, DO NOT USE THAT LAWYER. He or she is being dishonest with you in order to sell you a trust you probably don’t need.
As a general rule, most estates under $1,000,000 do not need a Living Trust to avoid probate. Don’t be tricked into believing you need a trust to avoid probate when you don’t. Even the Colorado Bar Association cautions against using Trusts solely to avoid probate.
Situations involving mental or physical incapacity are not a good reason to spend $1,000s on a Living Trust either because these situations can easily be handled with a simple General Durable Power of Attorney that you can also make yourself.