Colorado estate planning firm warns families to review wills and trusts after 2026 tax changes

Colorado Estate Planning Law Center is urging families to update estate plans, beneficiary forms, and incapacity documents after the 2026 federal estate tax exemption rose to $15 million per person. The firm says outdated plans can trigger probate, delays, and avoidable costs for heirs.

Why it matters: - Outdated estate plans can leave families paying avoidable legal and court costs. - Federal tax changes in 2026 may make older wills, trusts, and formulas no longer match a family's goals. - Missing or stale documents can also slow asset transfers and complicate care decisions if someone becomes incapacitated.

What happened: - Colorado Estate Planning Law Center is urging Colorado families to review wills, trusts, and beneficiary designations. - The Arvada-based firm is focusing on plans that have not been updated in several years. - The warning comes as families assess how 2026 federal estate tax changes affect existing plans. - Attorney Karen Brady says estate planning problems often start when circumstances or laws change after documents are signed.

The details: - Federal legislation enacted in 2025 raised the federal estate and gift tax exemption to $15 million per individual in 2026. - Trust provisions or formulas tied to the federal exemption may need review if they were built around a lower threshold or an expected reduction. - Colorado does not impose a separate state estate tax or inheritance tax. - Federal estate tax rules can still matter for some Colorado families. - Married couples should consider portability, which can let a surviving spouse use unused federal estate tax exemption from a deceased spouse when requirements are met. - The deceased spouse's estate generally must file IRS Form 706 and make the portability election, even when no federal estate tax is due. - Late-election procedures may be available for qualifying estates. - A revocable living trust only helps avoid probate for assets that were actually transferred into the trust. - If a home, bank account, or other asset was not retitled or otherwise addressed, probate may still be required. - Retirement accounts, life insurance policies, and similar assets usually pass by beneficiary designation, not by a will. - Outdated beneficiary forms can name a former spouse, a deceased relative, or another unintended recipient. - Without financial and medical powers of attorney, families may need court-appointed guardianship or conservatorship to manage finances or health care decisions. - Those court proceedings can create legal expenses, delays, and continued court oversight. - For families supporting a loved one with a disability, an outright inheritance can affect eligibility for Medicaid or Supplemental Security Income. - Attorney Kathryn Kaeble works in elder law and special needs planning, including strategies such as supplemental needs trusts. - Colorado Estate Planning Law Center also draws on probate and trust administration experience when advising families. - Attorney Caroline Poole joined the firm in 2026 to lead its Probate and Trust Administration Department. - The firm says its planning and administration mix helps it address both document preparation and the practical steps involved in carrying out those plans.

Between the lines: - The biggest risk is not always failing to create an estate plan; it is failing to keep one aligned with current laws, assets, and family circumstances. - The firm is positioning review work as a way to catch gaps before those gaps turn into probate, beneficiary disputes, or benefit issues. - A combined planning and administration practice can also reveal mistakes that only show up when an estate is settled.

What's next: - Families reviewing existing plans should look at document dates, beneficiary designations, asset ownership, and incapacity provisions. - Married couples may need to confirm whether portability elections were filed correctly. - Families with special needs planning questions may need to reassess whether a trust structure better protects benefits eligibility. - The firm expects more households to re-check old plans as the 2026 tax changes settle into practice.

The bottom line: - Estate plans are not one-and-done documents. The most expensive mistakes often come from plans that were valid when signed but no longer fit the law or the family behind them.