The Law Offices of M. Kent OlsenThe Law Offices of M. Kent Olsen2026-10-28T16:32:52Zhttps://www.mkolsenlaw.com/feed/atom/WordPressOn Behalf of The Law Offices of M. Kent Olsen<![CDATA[When to use a special needs trust or ABLE account in Colorado]]>https://www.mkolsenlaw.com/?p=486192026-10-28T16:32:52Z2026-10-28T16:32:52ZYour aunt leaves your adult son $15,000 in her will, and you worry the gift could cost him Supplemental Security Income (SSI) or Medicaid. A special needs trust holds money for someone with a disability under a trustee’s control. An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account the beneficiary can often manage directly. The right choice depends on the amount and source of the money.
Small inheritances often fit in an ABLE account
In 2026, deposits from all sources can total $20,000 per year, a limit the IRS adjusts annually. Your son can open one if his disability began before age 46, the cutoff since January 1, 2026.Colorado law bars the state from claiming a Colorado ABLE account after the owner dies, unless federal law requires it. Money left to him outright may still count against SSI, so the will should direct the gift.
Larger settlements usually need a special needs trust
A $200,000 injury settlement will not fit under the yearly ABLE cap, so a first-party trust funded with the beneficiary’s own money usually fits better. Federal law generally requires creating this trust before age 65 and repaying Medicaid from what remains after death, though older adults may use a pooled trust instead.Many families pair the two, with the trustee moving money into an ABLE account each year, up to the limit, so your loved one handles everyday costs while the trust protects the larger balance. Colorado’s Medicaid agency reviews every trust tied to an applicant, andfirst-party trust rules call for careful drafting.
Working adults can save more in an ABLE account
If your loved one works and has no employer retirement plan, they may add up to $15,650 more of their own 2026 earnings. SSI ignoresthe first $100,000 in savings in an ABLE account, and above that, SSI payments may pause while Medicaid generally continues.
Grandparents have two ways to give safely
Grandparents can give directly to an ABLE account, but those gifts share the $20,000 yearly limit. A third-party special needs trust in a grandparent’s estate plan has no yearly cap and no Medicaid payback, so leftover funds can pass to other relatives.
The source of the money guides your choice
Small gifts and earnings often belong in an ABLE account, while settlements and large inheritances usually call for a trust, and many Colorado families benefit from both. Before money changes hands, review wills and beneficiary designations so each gift lands safely. An estate planning attorney can help you match each source to the right tool.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[Protect your Denver home while qualifying for Medicaid]]>https://www.mkolsenlaw.com/?p=486162026-10-28T08:44:52Z2026-10-28T08:26:56ZMany Denver seniors worry that applying for Medicaid could cost them the family home they spent decades paying off. That fear is common, and it often grows from mixed messages. The rules may look less scary once you see how they work in Colorado.
Can Medicaid take your home while you are alive?
Your home generally may not count toward the asset limit while you live in it, although an equity cap could apply in some cases. While you are living, Colorado generally will not force the sale of your primary residence, but the state may place a pre-death Tax Equity and Fiscal Responsibility Act (TEFRA) lien on the property if you enter long-term institutional care and are not expected to return home. The bigger concern tends to come later.
How can Colorado estate recovery affect your home?
Colorado runs the Medicaid Estate Recovery Program, often called MERP. If you receive long-term care through Health First Colorado, the state may seek repayment from your estate and your home may be part of that claim.Federal law gives states this authority; states must pursue recovery in many situations, but the law also sets limits. For example, recovery generally cannot proceed while a surviving spouse is alive. Hardship waivers may also be available. Your family's facts will shape how these protections apply.
Which planning tools can help protect your home?
Elder law attorneys sometimes discuss several options with Denver families. Each has advantages and limitations, so it helps to compare them carefully:
Life estate deeds: Allow you to live in your home for life while transferring the remainder interest to a child, but may trigger Medicaid’s 60-month transfer penalty period and leave the property vulnerable to Colorado’s expanded estate recovery.
Asset protection trusts: May keep your home from counting as a Medicaid resource when you transfer it into a properly structured irrevocable trust, but remain subject to Colorado’s 60-month look-back period. If you require long-term care within 5 years of the transfer, you will face a strict penalty period of ineligibility.
Partnership long-term care insurance: May protect qualifying benefits from Medicaid eligibility limits and estate recovery when you hold a policy that meets program requirements.
Not every tool suits every household. Taxes, family dynamics and your anticipated care needs may all influence which approach makes sense for you.
Why should you plan ahead to protect your home?
Colorado reviews transfers you made before applying. The state looks back 60 months at asset transfers before a long-term care application. If you retitle or give away your home inside that window, you could face a penalty period without coverage. Starting early generally gives you more room to plan.
Protect your Mile High legacy with a plan, not a guess
Your home may be your largest asset, and it likely carries decades of memories. A Colorado elder law attorney can review your situation, explain which legal options may apply and point out possible risks before you sign anything. This post offers legal information, not legal advice, so a personal consultation may help you move toward a plan you feel good about.]]>On Behalf of The Law Offices of M. Kent Olsen, P.C.<![CDATA[When should you seek guardianship for an aging parent?]]>https://www.mkolsenlaw.com/?p=486122026-07-30T12:28:44Z2026-07-30T12:28:44ZWhen should you become concerned?
Some changes are a normal part of aging. Others can make it harder for a person to manage daily life or make important decisions. The following signs may show that extra legal protection could become necessary:
Increasing confusion or worsening dementia symptoms
Unpaid bills or unusual financial activity
Financial exploitation, including scams or fraud
Missed medications or neglected medical care
Unsafe living conditions or wandering from home
Difficulty understanding important legal or financial decisions
These signs do not automatically mean a guardian will be necessary. They may, however, show that cognitive decline has reached a point where another level of legal protection may be appropriate.
Who decides whether guardianship is necessary?
A diagnosis of dementia does not automatically lead to guardianship. A court reviews the person's ability to make or communicate responsible decisions. The court then decides whether to appoint a guardian.
The court also considers other legal options. If a less restrictive arrangement can meet the person's needs, the court may decide that guardianship is unnecessary. If those options cannot provide enough protection, the court may appoint a guardian.
When early planning leaves more options
A sudden illness, financial scam or rapid cognitive decline can leave families with fewer choices. Once a person loses the legal capacity to sign estate planning documents, some planning tools are no longer available.
Planning ahead can preserve more legal options. If guardianship later becomes necessary, documents signed earlier may already give someone the authority to handle financial or healthcare decisions. That may reduce the need for another court proceeding.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[When can I challenge a will?]]>https://www.mkolsenlaw.com/?p=484622025-10-24T19:54:07Z2025-10-24T19:54:07Z you believe a will does not reflect the true intentions of the deceased, you may consider contesting the will. Some of the more common examples of reasons people move forward with a challenge include concerns that the individual who made the will lacked the capacity to make the decisions at the time or was under undue influence. Other arguments may involve allegations of fraud or that the will was not properly executed. The following will dive into each of these examples and provide more information so you can decide if you should pursue further action.
Lack of testamentary capacity or undue influence
One of the primary reasons to contest a will is the belief that the testator (the person who made the will) lacked the mental capacity to do so. Testamentary capacity means the testator understood the nature of making a will, the extent of their assets, and the claims of those who might expect to benefit from the will. Undue influence is another common reason. This occurs when someone manipulates the testator, compromising their free will. This can result in a will that reflects the influencer's desires rather than the testator's.If you suspect the testator lacked capacity, you may need to provide medical records or witness testimonies to support your claim. Proving undue influence often requires evidence of manipulation or coercion.
Fraud or forgery
A will may be contested if the testator's signature was forged. This is a serious allegation that requires substantial proof. Examples that can help include:
The will contains suspicious alterations or additions.
The testator's signature does not match known examples.
Witnesses to the will's signing are unreliable or unavailable.
Fraud or forgery claims often necessitate expert analysis, such as handwriting examination.
Improper execution
Wills must adhere to specific legal formalities to be valid. The particulars vary by state. In Colorado, this generally includes a requirement that the will be in writing, signed by the testator and either signed by at least two witnesses or acknowledged by the testator before a notary public.Contesting a will is a complex process that requires careful consideration of the legal grounds and potential evidence. If you believe you have a valid reason to challenge a will, consulting with an experienced probate attorney can provide guidance and help you navigate the legal system. Understanding the common reasons for contesting a will is the first step in determining whether to proceed with your case.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[Can a will become so outdated that it is no longer accurate?]]>https://www.mkolsenlaw.com/?p=484612025-09-25T18:18:12Z2025-09-25T18:18:12ZOutdated documents could justify litigation
Technically, wills do not lose their authority due to age. A will drafted on an 18th birthday could still control the descent of a person's property if they die in their 90s. Still, if a will is old and inaccurate, the people who have close relationships with the decedent and a potential interest in their estate could ask the courts to set aside outdated documents.
For example, a will drafted after the birth of a first child may only include that one child as a beneficiary. If the testator went on to have three more children, the younger children could cooperatively pursue a will contest on the basis that the document was inaccurate due to its age and their exclusion was unintentional. Unless there are clear indications that the testator intended to disinherit three of their children, the courts could set aside a will compromised by outdated terms.
Factors, including the changes that occurred after the testator drafted the will, may influence what the courts believe is appropriate when reviewing will contests based on the omission of certain people or highly outdated terms. The inclusion of deceased beneficiaries or assets liquidated long ago could raise questions about the accuracy of a will. The omission of spouses and children can also raise red flags.
Discussing the possibility of probate litigation can help those disappointed by a will take appropriate action. The courts can set aside old documents in certain cases to protect those who may have been intended beneficiaries or legal heirs if there had been no will.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[Who may need to draft powers of attorney?]]>https://www.mkolsenlaw.com/?p=484582025-08-29T11:26:13Z2025-08-29T11:26:13ZYoung professionals and college students
When teenagers become adults, they lose the direct support of their parents. Parents cannot access medical records or make decisions on behalf of a child who is now an adult. They also lose control over the resources that belong to their adult children. Powers of attorney help ensure that someone can pay a young adult's bills or oversee their medical care when they require support.
People with chronic medical conditions
Certain medical issues are likely to recur repeatedly or slowly worsen throughout life. People diagnosed with chronic or progressive maladies may need to consider the possibility of future incapacity. Establishing powers of attorney to ensure that they have support if their condition worsens or something goes wrong during treatment can be beneficial for those dealing with significant medical challenges.
Adults preparing for retirement
Advanced age comes with a variety of potential medical challenges. People's physical capabilities decline, leaving them vulnerable to traumatic injuries caused by falls and similar incidents. Alzheimer's disease or other forms of dementia can also leave people incapable of managing their own affairs. Older adults thinking about their independence and future need for support may want to specifically draft durable powers of attorney. They can designate someone to assist them if they become permanently incapacitated.
Creating powers of attorney while an adult is still healthy can protect them in the future when their condition changes. People in a variety of circumstances can derive practical protection and peace of mind from powers of attorney.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[How the Big Beautiful Bill will change your estate plan in 2025]]>https://www.mkolsenlaw.com/?p=484462025-08-06T00:24:15Z2025-08-06T00:24:15ZHow the Big Beautiful Bill could change your estate planning
The Big Beautiful Bill locks in a significantly higher estate and gift exemption. This amounts to about $13 to $14 million per person, adjusted for inflation. Without this legislation, the exemption would have dropped by nearly half in 2026, reducing how much you could pass on to your children and loved ones tax-free.
If you own a family business, investment properties or have assets for retirement, this new law gives you greater flexibility. You now have the option to plan thoughtfully, without feeling pressured to make rushed financial moves before the tax rules change again.
It is important to review your estate plan to see how these updates affect your family’s future.
How this change affects your estate planning strategies
With the Big Beautiful Bill in place, now is the time to adjust your estate plan. Focus on these key areas:
Lifetime gifting strategies: Update your approach to wealth transfers without facing immediate tax deadlines.
Trust structures: Re-evaluate trusts to ensure they protect family assets and support long-term care needs.
Business succession plans: Prepare a clear plan to pass down family business or partnerships.
Estate documents: Review your will, powers of attorney and healthcare directives to reflect updated exemption amounts.
Taking these steps ensures your estate plan supports your retirement goals and family legacy.
Keep your estate plan updated as laws change
Although the Big Beautiful Bill provides valuable tax relief, regularly updating your estate plan remains essential. Whether you are providing for your children, managing care for aging parents or planning for your retirement, your documents and strategies must reflect today’s laws.
Consider consulting with an estate planning attorney in the Denver area to ensure your estate plan protects what matters most. Proactive planning today gives you peace of mind for the years ahead.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[How often should people review and update estate plans?]]>https://www.mkolsenlaw.com/?p=484232025-06-25T11:10:07Z2025-06-25T11:10:07ZWhen personal circumstances are vastly different
An individual's life can change drastically in just a few hours. A loved one could have a major medical emergency. A spouse could file for divorce. People acquire highly-valuable assets or liquidate personal property.
Children can have grandchildren, which can completely change an individual's testamentary wishes. Any of these situations and many others might warrant a significant adjustment to estate planning documents. When a testator's health, family or finances change, their estate planning documents may need to change as well.
When several years have passed
Not all changes to personal circumstances are abrupt and obvious. Situations also evolve slowly over time. Investments accumulate value, forcing people to rework their wills to address the possibility of estate taxes.
Relationships that were once close may degrade over time, while others may heal and improve. People don't always recognize that there have been significant shifts in their circumstances until they review their documents and realize how outdated some of their terms have become. Making a commitment to reviewing estate plans a few times every decade can help people ensure that they have the right documents in place and the right terms included in those documents.
Testators who routinely review and modify their estate plans can feel confident about leaving a positive impact after their passing and having access to support when they need it the most.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[Formal vs. informal probate: What is the difference?]]>https://www.mkolsenlaw.com/?p=484212025-05-27T08:16:07Z2025-05-27T08:16:07ZWhen someone passes away, their estate may need to go through probate. Probate is the legal process of managing and distributing assets based on an individual's will. If they do not have a will, state laws will decide how the assets are distributed. There are two main types of probate: formal and informal. Understanding the difference can help families choose which is right for their situation.
When informal probate applies
Informal probate is the most common and straightforward type. People generally use it when the will is valid and under the following circumstances:
Family members get along
No concerns about fraud
No missing documents
No unclear wishes
During an informal probate, the court appoints a personal representative or executor. The representative manages the estate with limited court oversight. In other words, the judge does not stay involved throughout the process.
When formal probate is required
This process is more structured and involves greater court supervision. People use it when there are:
Disagreements about the will
Questions about its validity
Uncertainty about who should oversee the estate
The court may hold hearings and require formal notices to all interested parties. If there is no will or the estate is quite complex, formal probate may also be necessary.
Making the right decision
Choosing betweenformal and informal probate depends on the facts of the estate. If the will is clear and the heirs agree on what should happen, they can choose informal probate. This process can save time and legal costs. On the other hand, formal probate may offer protection if there is a chance of conflict or confusion.
Get guidance before filing
Probate does not have to be overwhelming. However, thewrong process can create delays and stress. Speaking with an experienced estate attorney can help you decide which path is best for your family to avoid costly mistakes.]]>On Behalf of The Law Offices of M. Kent Olsen<![CDATA[Do disinherited adult children have grounds to contest a will?]]>https://www.mkolsenlaw.com/?p=484202025-05-02T12:36:56Z2025-05-02T12:36:56ZInheritance rights are complex
There are numerous scenarios in which people in Colorado have a statutory right to inherit from an estate. The surviving spouse of an individual who recently died typically has a right to an inheritance. The minor children of an individual who died may also have an interest in an estate even if the decedent did not include their minors in their will. That right stems from a parent's obligation to provide for the basic needs of their children.
Adult children do not automatically have a right of inheritance. They can inherit from an intestate estate if their parent dies without a will. In scenarios where parents omit a child or intentionally disinherit them, adult children need valid grounds to contest a will.
What could lead to a will contest?
Some people create a will early in life and then never revisit their estate plans. In scenarios where the date that the testator drafted the documents predates the birth of a child left without an inheritance, the now-adult child may have grounds to contest the will. They could establish a straightforward claim that their parent unintentionally omitted them by drafting the documents prior to their birth.
Other times, it might be possible to assert that the testator made revisions to their documents at a point in their life where they lacked testamentary capacity. Disinherited adult children can also sometimes establish that their parents experienced undue influence from other family members or caregivers.
Reviewing a will and family circumstances with a skilled legal team can help people determine if they have grounds to initiate probate litigation. Disinherited adult children can sometimes successfully contest the wills of their deceased parents.]]>