Will vs. Trust vs. Power of Attorney — What You Need to Know in Colorado

If you’ve started thinking about your estate plan, you may have wondered what documents you actually need. Many people confuse wills, trusts, and powers of attorney — but each serves a unique purpose. Here’s a quick guide to understanding the difference and deciding which estate planning tools are right for you.

Wills: The Foundation of Most Estate Plans

A will lets you decide who inherits your property and who will serve as guardian for your minor children. In Colorado, wills must go through probate, which is the court process for carrying out your wishes. This process can be straightforward, but some families prefer to avoid it.

Living Trusts: Avoid Probate and Keep Privacy

A revocable living trust allows you to transfer your assets into the trust while keeping control of them during your lifetime. When you pass away, the assets can be distributed to your beneficiaries without going through probate. This can save time, maintain privacy, and reduce legal costs.

Powers of Attorney: Planning for Incapacity

A financial power of attorney and a health care power of attorney let someone you trust make decisions if you can’t. Without these documents, your loved ones might need to seek a court-appointed guardian or conservator — a process that can be stressful and expensive.

Putting It All Together

For most people, a comprehensive estate plan includes a will, powers of attorney, and in many cases a trust. The right combination depends on your goals, the size of your estate, and your family situation.

If you’re ready to create or update your plan, talk to a Colorado estate planning attorney who can guide you through the process and help you protect what matters most.