10 Estate Planning Mistakes Colorado Families Make

Estate planning isn’t exactly a topic that comes up at dinner parties. But here’s the thing: avoiding it can cost your family thousands of dollars, months of stress, and sometimes relationships that never fully recover.

At Meurer and Potter, P.C., we’ve worked with Colorado families across Denver, Colorado Springs, and surrounding areas for years. We’ve seen what happens when estate plans are done right, and we’ve helped families pick up the pieces when things go wrong. The good news? Most estate planning mistakes are completely preventable once you know what to watch out for.

Whether you’re just starting to think about your legacy or you’ve had documents sitting in a drawer for years, here are ten estate planning mistakes we see Colorado families make again and again.

Failing to Create an Estate Plan at All

This one might seem obvious, but it’s the most common mistake by far. Many families assume estate planning is only for the wealthy or the elderly. “I don’t have enough assets to worry about,” people tell us. Or, “I’ll get to it when I’m older.”

Here’s what actually happens without a plan: Colorado intestacy laws decide who gets your assets. That means the state, not you, determines where your money, property, and belongings go. And if you have minor children? The court decides who raises them.

We’ve seen families torn apart by these situations. A parent passes unexpectedly, and suddenly siblings are fighting over guardianship in front of a judge who’s never met any of them. It’s heartbreaking, and it’s avoidable.

Even a basic will gives you control. A more comprehensive estate plan, including trusts and powers of attorney, can protect your family from probate court and keep private matters private.

Not Updating Your Plan After Major Life Events

Creating an estate plan is a great first step. But it’s not a “set it and forget it” situation.

Life changes. You get married, divorced, have children, or lose a loved one. Maybe you buy a house, start a business, or move to Colorado from another state. Each of these events can make your existing documents outdated or even harmful.

We’ve worked with clients whose wills still named ex-spouses as beneficiaries. Others had deceased parents listed as executors. One family discovered their trust didn’t include their youngest child because she was born after the documents were signed.

A good rule of thumb: review your estate plan every year and after any major life event. At our firm, we actually offer estate plan annual reviews because we know how easy it is to let these updates slip through the cracks.

Overlooking Colorado-Specific Laws and Requirements

Estate planning isn’t one-size-fits-all, especially when it comes to state laws. Colorado has specific requirements for wills, including how they must be signed and witnessed. The state also has unique rules around spousal elective shares and probate procedures.

Generic online forms often miss these details. We’ve seen families bring in documents they created using a template website, only to discover the will wouldn’t hold up in Colorado court because it wasn’t properly executed.

Colorado also allows certain types of trusts and estate planning tools that other states don’t, and vice versa. Working with an attorney who understands Colorado law ensures your documents will actually work the way you intend.

Neglecting Beneficiary Designations

Here’s something that surprises a lot of people: your will doesn’t control everything.

Life insurance policies, retirement accounts like IRAs and 401(k)s, and transfer-on-death accounts pass directly to whoever is named as the beneficiary. These designations override whatever your will or trust says.

So if you got divorced ten years ago but never updated the beneficiary on your 401(k), guess who’s getting that money? Not your current spouse. Not your kids. Your ex.

We recommend making a complete list of all accounts with beneficiary designations and reviewing them alongside your estate plan. It’s one of the simplest things you can do, and it prevents some of the most frustrating outcomes we see.

Forgetting to Plan for Incapacity

Most people think estate planning is about what happens after you die. But what happens if you’re alive but unable to make decisions for yourself?

Without proper documents in place, your family may need to go to court to establish a guardianship or conservatorship. This process is expensive, time-consuming, and emotionally draining. And it puts a judge in charge of decisions that should be yours.

A durable financial power of attorney allows someone you trust to manage your finances if you can’t. A medical power of attorney and living will (also called a healthcare directive) ensure your healthcare wishes are followed and that someone you choose can make medical decisions on your behalf.

These documents aren’t just for older adults. Accidents and unexpected illnesses can happen at any age. We’ve helped families with adult children in their twenties set up these protections because you just never know.

Leaving Out Digital Assets

Think about how much of your life exists online. Email accounts, social media profiles, online banking, investment platforms, cloud storage, maybe even cryptocurrency. What happens to all of it when you’re gone?

Colorado law does allow fiduciaries to access digital assets, but only if your estate documents clearly authorize it. Without that authorization, your family could be locked out of important accounts or lose access to valuable assets entirely.

Your estate plan should include:

• A list of digital accounts and how to access them
• Clear authorization for your executor or trustee to manage these assets
• Instructions for what you want done with social media profiles and other online presence

Store login information securely, whether that’s in a password manager your executor can access or a secure document. This is one area of estate planning that’s evolved rapidly, and many older plans don’t address it at all.

Choosing the Wrong Executor or Trustee

Your executor or trustee will be responsible for carrying out your wishes. They’ll manage assets, pay debts, file paperwork, and distribute inheritances. It’s a big job, and choosing the wrong person can create serious problems.

Some things to consider:

• Trustworthiness: Will this person act in your beneficiaries’ best interests?
• Capability: Can they handle financial decisions and paperwork?
• Availability: Do they have the time and proximity to manage the estate?
• Relationships: Will naming one child over another create resentment?

Co-trustees can work well, but they can also lead to conflict if they disagree on decisions. And naming someone who lives across the country can complicate an already difficult process.

In some cases, a professional fiduciary or corporate trustee makes more sense than a family member. It’s worth having an honest conversation about whether the person you’re considering is truly the right fit.

Not Considering Tax Implications

Colorado doesn’t have a state estate tax, which is good news. But that doesn’t mean taxes aren’t a concern.

Federal estate tax still applies to larger estates. As of 2025, the federal exemption is quite high, but it’s scheduled to drop significantly in 2026 unless Congress acts. If your estate exceeds the exemption, your heirs could face a substantial tax bill.

Capital gains taxes are another consideration. How assets are titled and transferred can affect whether your beneficiaries pay taxes on appreciated property.

Strategies like charitable remainder trusts, grantor retained annuity trusts (GRATs), and irrevocable life insurance trusts (ILITs) can help reduce tax exposure. These aren’t tools everyone needs, but for families with significant assets, they can save hundreds of thousands of dollars.

At Meurer and Potter, P.C., we focus on creating plans that minimize tax burdens while ensuring your assets go where you want them to go.

Failing to Communicate With Family Members

You’ve spent time and money creating a thoughtful estate plan. But if your family doesn’t know about it, you could still end up with confusion and conflict after you’re gone.

We’re not saying you need to share every detail of your finances with your children. But having conversations about key decisions can make a huge difference.

Things worth discussing:

• Who you’ve named as executor and why
• Who will care for minor children if something happens to you
• Any unequal distributions and your reasoning
• Where your documents are located
• Your wishes for end-of-life care

These conversations can be uncomfortable. But they’re far less painful than the alternative: family members learning your decisions for the first time while grieving, potentially feeling hurt or blindsided.

A little communication now can prevent years of resentment later.

Attempting to Handle Everything Without Professional Help

We get it. There are a lot of online tools and templates that promise to make estate planning quick and cheap. And for some very simple situations, they might be adequate.

But here’s what we’ve learned after years of practice: the cost of fixing a poorly drafted estate plan almost always exceeds the cost of doing it right the first time.

DIY estate planning often results in:

• Documents that don’t meet Colorado’s legal requirements
• Trusts that are never properly funded
• Missing documents like powers of attorney
• Plans that don’t actually avoid probate
• Unintended tax consequences

An experienced estate planning attorney doesn’t just fill in blanks on a form. We take time to understand your family, your goals, and your concerns. We think about scenarios you might not have considered. And we create a plan that’s customized to your situation, not a one-size-fits-all template.

That’s the approach we take at our firm. We start with a conversation about what you’re trying to accomplish, and we build your plan from there.

Conclusion

Estate planning mistakes are common, but they don’t have to happen to your family. By being aware of these pitfalls and working with professionals who understand Colorado law, you can create a plan that protects your loved ones, minimizes costs and delays, and ensures your wishes are honored.

The best time to start is now. Whether you need a complete estate plan, an update to existing documents, or just want someone to review what you have, we’re here to help.

Meurer and Potter, P.C. has been helping Colorado families with estate planning, business succession, and probate matters for years. Our attorneys, Michael T. Meurer, Gary Potter, and Matthew P. Zanotelli, take a personalized approach to every client. We don’t believe in boilerplate documents or rushed consultations. We believe in understanding your unique needs and creating a plan that actually works.

Ready to get started? Contact our Denver-area office to schedule a consultation. Your family’s future is worth protecting.

Frequently Asked Questions

What happens if you die without an estate plan in Colorado?

Without an estate plan, Colorado intestacy laws determine who inherits your assets—not you. The court decides who raises your minor children, and your family may face lengthy probate proceedings, potential disputes, and additional expenses. Creating even a basic will gives you control over these critical decisions.

How often should you update your estate plan?

You should review your estate plan at least once a year and after any major life event, such as marriage, divorce, having children, buying property, or moving to a new state. Outdated documents can name the wrong beneficiaries or executors, causing unintended legal and financial consequences for your family.

What estate planning mistakes do Colorado families make most often?

The most common estate planning mistakes Colorado families make include failing to create a plan at all, not updating documents after life changes, overlooking beneficiary designations, neglecting incapacity planning, and using generic online templates that don’t meet Colorado’s specific legal requirements.

Does a will override beneficiary designations on retirement accounts?

No. Beneficiary designations on life insurance policies, IRAs, 401(k)s, and transfer-on-death accounts override what your will or trust says. If you haven’t updated these designations after major life changes like divorce, assets may go to unintended recipients like an ex-spouse.

What documents do I need for incapacity planning in Colorado?

Essential incapacity planning documents include a durable financial power of attorney, a medical power of attorney, and a living will (healthcare directive). These ensure someone you trust can manage your finances and make healthcare decisions if you become unable to do so yourself.

Is DIY estate planning worth it to save money?

DIY estate planning often costs more in the long run. Generic templates frequently fail to meet Colorado’s legal requirements, result in improperly funded trusts, or miss critical documents. Working with an experienced Colorado estate planning attorney helps avoid costly mistakes and ensures your plan actually protects your family.