Colorado estate planning shifts from taxes to probate and incapacity

With the federal estate tax exemption now at $15 million per person, Denver attorney R. Garth Ferrell says Colorado families should worry less about taxes and more about probate delays, incapacity planning and outdated documents. The message: estate plans still matter, even for families far below the new threshold.

Why it matters: - The higher federal exemption reduces the number of Colorado families likely to face federal estate tax. - The bigger risks for many families are now probate delays, a lack of legal authority during incapacity and old documents that no longer match current wishes. - A plan that avoids court can save time, preserve privacy and reduce family conflict.

What happened: - The One Big Beautiful Bill Act, signed into law in July 2025, raised the federal estate and gift tax exemption to $15 million per person and $30 million for married couples. - The new exemption took effect on January 1, 2026, and has no scheduled sunset. - Denver estate planning attorney R. Garth Ferrell says the change has led some Coloradans to think estate planning is no longer necessary. - Ferrell is principal of the Law Office of R. Garth Ferrell, P.C., and has practiced law for more than 39 years.

The details: - Colorado has no state estate tax or inheritance tax. - Ferrell said very few estates will ever approach the $15 million federal threshold. - Colorado probate must generally stay open for at least six months so creditor claims can be made. - Contested or formal probate proceedings can last well beyond a year. - National surveys show fewer than one in four American adults has a will, the lowest rate in years. - Ferrell points to the ongoing transfer of wealth across generations as a reason families should still plan now. - Probate avoidance tools include revocable living trusts, beneficiary deeds for Colorado real estate and coordinated account beneficiary designations. - Incapacity planning tools include a durable financial power of attorney and medical directives. - Document reviews matter when plans were drafted under old tax rules, after prior marriages or before beneficiary designations changed. - The Law Office of R. Garth Ferrell, P.C. offers estate planning, wills, trusts, powers of attorney, probate administration and probate litigation services across Denver, Aurora, Lakewood and the Front Range. - Ferrell said he works directly with every client and offers plain-language guidance and a complimentary initial consultation. - More information is available at the firm's website.

Between the lines: - The tax law change may be creating a false sense of security for families that are not wealthy enough to worry about the exemption. - The practical estate-planning challenge in Colorado is less about avoiding federal tax and more about preventing court involvement when someone dies or becomes incapacitated. - Ferrell said the new exemption is permanent only in the sense that the law does not set an expiration date, and Congress can change it later. - That makes flexible planning more important than relying on today's tax rules.

What's next: - Families are likely to keep reassessing estate plans in light of the new federal exemption. - Ferrell says the best time to review documents is before a crisis, not after one. - Colorado residents with old wills, trusts or beneficiary forms may need updates to avoid unintended outcomes.

The bottom line: - For most Colorado families, the estate-planning risk has moved from taxes to readiness.