COLORADO ESTATE PLANNING HANDBOOK

Transcription

1 Orange Book Handbook COLORADO ESTATE PLANNING HANDBOOK SIXTH EDITION VOLUME 1 h DAVID K. JOHNS JULIA GRIFFITH MCVEY CONSTANCE B. WOOD A joint project of the Trust and Estate Section of the Colorado Bar Association and Continuing Legal Education in Colorado, Inc. CONTINUING LEGAL EDUCATION IN COLORADO, INC. COLORADO BAR ASSOCIATION DENVER BAR ASSOCIATION 2011

2 Orange Book Handbook COLORADO ESTATE PLANNING HANDBOOK SIXTH EDITION ISBN: Published by: CONTINUING LEGAL EDUCATION IN COLORADO, INC Grant Street, Suite 300 Denver, Colorado Phone: (303) Toll-free: (888) Fax: (303) Website: Dawn M. McKnight, Esq. Assistant Executive Director/ Publications Director Colorado Bar Association CLE Lisa C. Travis Fischer, J.D. Acquisitions Editor/Manager Colorado Bar Association CLE Ellen Buckley, Esq. Managing Editor Colorado Bar Association CLE John and Lynn Cleveland Subject Index Lindex COLORADO BAR ASSOCIATION CLE CLE in Colorado, Inc. is the nonprofit educational arm of the Colorado Bar Association and the Denver Bar Association Continuing Legal Education in Colorado, Inc. (CBA-CLE) publications are intended to provide current and accurate information about the subject matter covered and are designed to help attorneys maintain their professional competence. Nothing contained in this book is legal advice or other professional advice. Readers are responsible for obtaining advice from their own lawyers or other professional. Publications are distributed with the understanding that CBA-CLE does not render any legal, accounting, or other professional service. The contents of this book do not necessarily reflect the views of the Internal Revenue Service or any other regulating governmental entity. The material in this book represents the opinions and views of the authors, and should not be construed as the views of any of the authors law firms or of Continuing Legal Education in Colorado, Inc. The proper interpretation or application of the material in the book is a matter for the considered judgment of the individual legal practitioner, and CBA-CLE disclaims all liability therefor. As with any legal textbook or other secondary authority, attorneys dealing with specific legal matters should also fully research current, primary authorities. Copyright by Continuing Legal Education in Colorado, Inc. All Rights Reserved.

3 ABOUT THE MANAGING EDITORS David K. Johns, Esq. Johns & Associates, LLC 949 F St. Salida, CO dkjohns@earthlink.net Chapter 7 Principles of Wills David Johns is a part-time practitioner with the law firm of Johns & Associates, LLC, and adjunct professor of law at the University of Denver Sturm College of Law. A native of Denver, he received his undergraduate degree at the University of Colorado (1983) and his law degree from the University of Denver (1990). Mr. Johns is the author of numerous articles and has lectured to attorneys on estate planning issues at local, state, and national conferences. He is a member of the Trust and Estate Section of the Colorado Bar Association and a member of the Bar of the Supreme Court of the United States. Mr. Johns is also editor of The Green Book: Selected Colorado Materials on Wills, Estates, Trusts and Taxes. Julia Griffith McVey, Esq. The Law Office of Julia Griffith McVey, P.C W. Colfax Ave., Ste. C-400 Lakewood, CO jmcvey@mcveylaw.com Julia Griffith McVey graduated from the University of Colorado-Boulder and received her law degree from the University of Denver College of Law in Mrs. McVey practices in the areas of estate planning and probate administration. She is a member of the Denver and Colorado Bar Associations, the Centennial Estate Planning Council, and the Rocky Mountain Estate Planning Council, where she was a past president. Additionally, Mrs. McVey has been active in committee work on behalf of the Probate and Trust Law Section of the Colorado Bar Association. She has made numerous presentations for CBA Continuing Legal Education in the area of estate planning and probate administration. She is currently co-editor of the Trust and Estate Section s Council Notes. She co-authored an article for The Colorado Lawyer entitled Marital Agreements in Colorado, published in February She has been an attorney on the AARP Legal Services Network since (9/11) vii

4 Colorado Estate Planning Handbook Constance B. Wood, Esq. Constance Beck Wood LLC 1866 Vine St. Denver, CO Constance Beck Wood practices in the areas of estate planning, probate, and represents several non-profit organizations. She received her Juris Doctor degree from the University of Colorado and Masters of Laws in Taxation from the University of Denver. Ms. Wood is a member of the Colorado, Denver, and Georgia Bar Associations. She has an AV rating with Martindale-Hubbell and has been selected as one of the Best Lawyers in Denver and a Colorado Super Lawyer. Ms. Wood has served the Trust and Estate Section of the Colorado Bar Association as chair, vice-chair, and secretary/treasurer, chair of the Statutory Revisions Committee, council member and co-editor of the Council Notes for the Section. She has been a lecturer at numerous continuing legal education programs and has been chair of the continuing legal education programs for the Section. Ms. Wood is a Fellow of the American College of Trust and Estate Counsel. viii (9/11)

5 ABOUT THE AUTHORS Stephen M. Brainerd, Esq. Davis Graham & Stubbs LLP th St., Ste. 500 Denver, CO Chapter 36 Multi-Jurisdictional Matters Steve Brainerd is a partner in Davis Graham & Stubbs LLP s Income Tax, Employee Benefits & Estates Group. His practice is limited to estate planning/administration and related transfer tax matters; fiduciary counseling and risk management; and probate litigation and protective proceedings. Mr. Brainerd has served as an adjunct professor of trusts and estates law at the University of Denver College of Law. He is a Fellow of the American College of Trust and Estate Counsel; a past chair of the Colorado Bar Association Trust and Estate Section Council and a member of its Statutory Revisions Committee; and a faculty lecturer for both national and Colorado CLE programs. Mr. Brainerd is a 1986 graduate of American University s Washington College of Law (J.D.), and a 1982 honors graduate of Colgate University (B.A., Philosophy). Jessica L. Broderick, Esq. Sherman & Howard L.L.C th St., Ste Denver, CO jbroderick@sah.com Chapter 23 Powers of Appointment Jessica Broderick is an associate at Sherman & Howard L.L.C., practicing in the areas of wealth transfer planning, estate and trust administration, and associated business and marital planning. She was a co-author with Gregory T. Densen and Taylor M. Dix of Decanting in Colorado: Nothing to Wine About, published in the CBA Trust and Estate Member Newsletter on June 15, 2009, and was a member of the Decanting Subcommittee of the CBA Trusts and Estates Statutory Revisions Committee. Ms. Broderick is a member of the Rocky Mountain Estate Planning Council and the Colorado and Denver bar associations. She graduated in 2008 from the University of Colorado School of Law, where she served as a production editor for the University of Colorado Law Review. (9/11) ix

6 Colorado Estate Planning Handbook Edward D. Brown, Esq. Engel & Reiman pc The Equitable Building th St., Ste. 500 Denver, CO Chapter 16 Irrevocable Trusts Mr. Brown, a principal in the firm of Engel & Reiman pc, received his Bachelor of Arts in Finance and Accounting, cum laude, from West Virginia University in 1981; his Juris Doctor from the University of Denver in 1984; and his Master of Laws in Taxation from the University of Denver in He is also a certified public accountant. Mr. Brown specializes in business transactions and planning, taxation, and estate planning. He has authored numerous articles on a variety of legal topics in publications such as the Journal of Taxation, Asset Protection Journal, The Colorado Lawyer, and the Journal of International Taxation. He is also co-author of the Second Edition of the CCH s Asset Protection Planning Guide, and a contributing author to Asset Protection Strategies, published by the American Bar Association. Mr. Brown is admitted to practice law in Colorado and is a member of the American Bar Association, the Colorado Bar Association, and the Denver Bar Association. Elizabeth A. Bryant, Esq. Elizabeth A. Bryant, P.C Vine St. Denver, CO ebryant@eablaw.com Chapter 10 Non-Traditional Families Elizabeth Bryant practices in the areas of estate planning, probate, small business formation, and real property. Ms. Bryant received her law degree from the University of Denver College of Law in 1990, where she was general and technical editor of the Denver University Law Review. She is a member of the Colorado, Denver, Colorado Women s, and Colorado GLBT bar associations. She is a current appointee on the Colorado Supreme Court s Unauthorized Practice of Law Committee. She is a Fellow in the American College of Trust and Estate Counsel and is a member of the Women s Estate Planning Council. She is a frequent presenter on the topic of estate planning for non-traditional families. Ms. Bryant is active in the Trust and Estate Section of the Colorado Bar Association. She has also been active in civic endeavors and has served on the Board of Trustees of The Women s Foundation of Colorado and the Alexander Foundation. She was a founding director of the Denver Metropolitan Affiliate of the Susan G. Komen Breast Cancer Foundation. x (9/11)

7 About the Authors James W. Buchanan III, Esq. Buchanan & Stouffer, PC 141 Union Blvd., Ste. 300 Lakewood, CO Chapter 14 Revocable Trusts Jim Buchanan received his undergraduate, law, and Master of Laws in Taxation degrees from the University of Denver. He is a Fellow of the American College of Trust and Estate Counsel, an Academician of the International Academy of Estate and Trust Law, a non-securities industry member of the Board of Arbitrators of the National Association of Securities Dealers, has taught trusts and estates at the University of Denver College of Law, and is listed in Best Lawyers in America. Throughout his legal career of more than three decades, presently as a member of the Lakewood law firm of Buchanan & Stouffer, Mr. Buchanan has focused his practice on personal estate and closely held business planning, primarily for entrepreneurs. He is one of the authors of the Colorado Estate Planning Forms book prepared by the Estate Planning Forms Committee of the Trust and Estate Section of the Colorado Bar Association, of which he is former co-chair. C. Elaine Carleton, Esq. Carleton Gotlin PC 1580 Lincoln St., Ste Denver, CO ecarleton@carletongotlinlaw.com Chapter 47 Basics of Oil and Gas C. Elaine Carleton is a Denver-based attorney who is licensed in Colorado and Texas. Her practice primarily focuses on the upstream side of oil and gas development, although the firm practice includes several estate and probate clients. She has extensive business and legal experience in all aspects of the oil and gas industry, including acquisition/divestment, exploration, development, marketing, and transportation. With almost 30 years of practical experience, she has developed a practice that emphasizes her background in title examination, drafting, reviewing, and negotiating oil and gas industry contracts for drilling, development, exploration, and transportation. Elaine administers and directs the resolution of various legal issues relating to exploration and drilling, including surface and mineral owner conflicts, title defects, and oil and gas transactional issues. In 1980, Elaine received a BBA from the University of Texas with an emphasis in Petroleum Land Management. For 10 years she worked for ARCO Oil & Gas Company in various capacities, including landman, crude oil marketer, land administrator, and project coordinator for development of a gas/oil marketing system. In 1991, Elaine relocated to Denver to attend law school at the University of (9/11) xi

8 Colorado Estate Planning Handbook Denver while working for Apache Corporation, Basin Exploration, Inc., and Amoco Production Company in Denver. In 1995, she received her J.D. and was admitted to practice in Colorado, and in May 1996, she was admitted to practice law in Texas. Elaine was the managing partner of Akers & Carleton, LLC for nine years before starting Carleton Law Firm LLC in 2008 and is now the managing partner of Carleton Gotlin PC. Elaine currently serves as a member of the Rocky Mountain Mineral Law Foundation Special Institutes Committee; has served as president and secretary of the Denver Association of Oil and Gas Title Lawyers; as the chair of the Legal and Legislative Committee for the Denver Association of Petroleum Landmen; and as a board member and the president of the Women s Estate Planning Council. Kelly Dickson Cooper, Esq. Holland & Hart LLP th St., Ste Denver, CO kdcooper@hollandhart.com Chapter 26 Drafting and Interpretation of Discretionary Distribution Standards Ms. Cooper concentrates her practice in virtually all areas of trusts and estates law, including probate, trust, estate, and gift tax; fiduciary-related litigation; estate and trust administration; and estate planning. As a member of the Fiduciary Solutions group, her practice includes the representation of corporate fiduciaries, individual fiduciaries, heirs, beneficiaries, and creditors in the resolution of probate and trust-related disputes through mediation, arbitration, and litigation. Specifically, this includes disputes involving fiduciary misconduct, spousal rights, interpretation of wills and trusts, distributions to beneficiaries, will contests, fiduciary compensation, and disputes in which fraud, undue influence, and lack of capacity are at issue. Ms. Cooper has been honored as one of the Best Lawyers in America, and as a Rising Star by Colorado Super Lawyers in 2010 and 2011 for Estate and Trust Litigation. Ms. Cooper served as a judicial intern for the Honorable C. Jean Stewart (retired) of the Denver Probate Court. She earned her J.D. from the University of Colorado School of Law in 2002 and her B.S. in Journalism from Kansas State University in She is admitted to practice before the Supreme Court of Colorado, the U.S. District Court for the District of Colorado, and the U.S. Tax Court. xii (9/11)

9 About the Authors Nancy R. Crow, Esq. Pendleton, Friedberg, Wilson & Hennessey, P.C Lawrence St., 10th Floor Denver, CO Chapter 39 Allocation of Estate and GST Taxes Nancy R. Crow is a director and shareholder with Pendleton, Friedberg, Wilson & Hennessey, P.C., where she practices in the areas of tax planning, estate planning, employee benefits, and probate. Ms. Crow s clients include closely held businesses, professional associations, nonprofit organizations, retirement funds, and individuals who require assistance with providing for their loved ones upon death or disability. Ms. Crow received her B.A. in Sociology from Antioch College, Yellow Springs, Ohio in 1970 and served as president of the Antioch College Alumni Association from She received her J.D. in 1974 from the University of Colorado School of Law, Boulder, Colorado, where she was awarded the Order of the Coif, and an LL.M. in Taxation from New York University Graduate School of Law in Her professional activities include service for the Colorado Bar Association as a member of the Executive Council, secretary-treasurer, vice-chair, and chair of the Section of Taxation; as a member of the Board of Editors for The Colorado Lawyer; and as column editor of the Trust and Estate Law column for The Colorado Lawyer. She is a Fellow of the American College of Trust and Estate Counsel. Ms. Crow s other publications include the chapters on Wills, Estate Planning, Estate Administration, and Trusts for Colorado Methods of Practice (Thomson West, 5th Ed. 2008) and numerous articles for The Colorado Lawyer, Colorado Real Estate Journal, and Medical Group Management Association Journal. Barbara Ann Dalvano, Esq E. 17th Ave., # 1105 Denver, CO barbaradalvano@yahoo.com Chapter 43 Advanced Estate Planning Techniques Barbara Ann Dalvano maintains a private law practice in Denver and Colorado Springs emphasizing estate, trust, and business succession planning, taxation and general commercial and business transactions. Ms. Dalvano is also special counsel to a Denver law firm. Barbara Ann Dalvano earned (9/11) xiii

10 Colorado Estate Planning Handbook her undergraduate degree from Villanova University, Pennsylvania; her law degree from T.C. Williams School of Law, University of Richmond, Virginia; and her Master of Laws in Taxation degree from Georgetown University, Washington, D.C. Ms. Dalvano is a member of the Denver and Colorado bar associations and the Rocky Mountain Estate Planning Council. She has served the Trust and Estate Section of the Colorado Bar Association as chair, vice-chair, and secretary/treasurer, as well as council member. Ms. Dalvano has also served as chair of the Estate Planning ( Orange Book ) Forms Committee for the Section and as a member of the Uniform Estate Tax Apportionment subcommittee of the Statutory Revisions Committee. Ms. Dalvano continues to participate on both the Estate Planning Forms Committee and the Statutory Revisions Committee. Ms. Dalvano is a Fellow of the American College of Trust and Estate Counsel (ACTEC) and is a member of the ACTEC Estate and Gift and Fiduciary Income Tax Committees. She is also a Fellow of the Colorado Bar Foundation. Ms. Dalvano is listed in Best Lawyers in America and as a Colorado Super Lawyer. Since March, 2000, she has served as a member (and former chair) of the Supervisory Committee of Ent Federal Credit Union, a $3 billion not-for-profit cooperative serving the financial needs of members in various communities along the Front Range. Bruce E. Deacon, Esq. Norton, Smith & Keane, P.C th St., Ste. 500 Denver, CO bdeacon@nsk-law.com Chapter 22 Real Property Bruce E. Deacon has been in private practice in Denver since He is Of Counsel at Norton, Smith & Keane, P.C. Mr. Deacon s law practice is focused on real estate, estate planning, estate and gift tax, and probate administration. He is a member of the CBA Sections on Real Estate Law and Taxation Law, as well as the CBA Trust and Estate Section. For five years, Mr. Deacon served as the liaison from the Trust and Estate Section to the Real Estate Law Section. In addition, he has been the president of the Greater Denver Tax Counsel Association and The City Club of Denver. Mr. Deacon has made presentations on real estate aspects of estate administration and estate planning at CLE courses and the Estate Planning Retreat. In 2009, the Trust and Estate Section awarded Mr. Deacon the first R. Sterling Ambler Award for outstanding contribution to the Trust and Estate practice in the State of Colorado. Mr. Deacon has earned a bachelor s degree at the University of Virginia, a J.D., cum laude, at the Syracuse University College of Law, and an LL.M. in Taxation at the University of Denver. xiv (9/11)

11 About the Authors Gregory T. Densen, Esq. Sherman & Howard L.L.C th St., Ste Denver, CO Chapter 23 Powers of Appointment Gregory T. Densen joined Sherman & Howard in 1998, and is a Member in Sherman & Howard s Estate Planning and Administration Group. Greg s expertise is in family business succession and related high net worth estate planning and estate administration GRATs/Sales to Grantor Trusts, family limited partnerships, IRS controversy, and court actions to resolve family conflict. Greg graduated from Washington University in St. Louis in 1994 and from the University of Iowa with a JD/MBA in Greg has taught numerous courses for the Colorado Society of CPAs and presented at a variety of estate planning seminars. Recently, Greg has led efforts to bring a decanting statute to Colorado, co-authoring Decanting in Colorado: Nothing to Wine About, CBA Trust and Estate Member Newsletter, June 15, 2009, and chairing the Decanting Subcommittee of the CBA Trusts and Estates Statutory Revisions Committee. Constance Tromble Eyster, Esq. Hutchinson Black and Cook, LLC 921 Walnut St., Ste. 200 Boulder, CO eyster@hbcboulder.com Chapter 4 Engagement Letters Constance Tromble Eyster is a member of Hutchinson Black and Cook, LLC, where her practice focuses on estate planning and probate and trust administration. Ms. Eyster has lectured on trust and estate topics throughout Colorado and has taught the Wills and Trusts course as an adjunct professor at the University of Colorado School of Law. She currently serves as Vice Chair of the Trust and Estate Section Executive Council, and is a past Chair of the Statutory Revisions Committee and Orange Book Forms Committee. Ms. Eyster is a 2000 graduate of the University of Colorado School of Law. (9/11) xv

12 Colorado Estate Planning Handbook Josie M. Faix, Esq. Wade Ash Woods Hill & Farley, P.C. 360 S. Monroe St., Ste. 400 Denver, CO Chapter 8 Nonprobate Transfers Josie M. Faix is an associate with Wade Ash Woods Hill & Farley, P.C., where her practice focuses on estate planning, estate and trust administration, and protective proceedings. Ms. Faix received her law degree from Georgetown University Law Center in Ms. Faix is active in the Trust and Estate Section of the Colorado Bar Association and is a member of the Statutory Review Committee and the Orange Book Forms Subcommittee. She is a member of the Colorado Bar Association and the Denver Bar Association. Bruce A. Fowler, Esq. Fairfield and Woods, P.C Lincoln St., Ste Denver, CO bfowler@fwlaw.com Chapter 17 Irrevocable Life Insurance Trusts Bruce A. Fowler is the head of the Wealth Transfer Group at Fairfield & Woods, where he focuses his practice on estates and trusts and general tax issues, including state and local taxes. In the estate planning area, Bruce aids his clients in defining and implementing family wealth transfer goals, structuring estates in a manner that minimizes the estate tax impact and maximizes asset protection, and transferring family-owned and closely held businesses in a tax-efficient manner. He represents estates and beneficiaries in probate and litigation proceedings and trustees in the administration of trusts. Also, Bruce represents clients in tax controversies, most specifically in the state and local tax area. Prior to becoming an attorney, Bruce practiced for five years as a CPA with Deloitte & Touche, LLP, and as a state and local tax specialist for a Fortune 500 company. Immediately after law school, Bruce s practice specialized in tax litigation and estate planning for the law firms of Jones Day, an international law firm, and Hall Estill in Tulsa, Oklahoma. Bruce moved to Colorado in 2000 to join one of Denver s largest estate and trust practices. Bruce contributes time to various community programs and non-profits. He serves on the board for Kempe Foundation, an organization that supports education and research programs for the prevention of child abuse. Bruce is chair of the Board for Friends of the Chain Foundation, an organi- xvi (9/11)

13 About the Authors zation that supports an orphanage for blind children in Uganda. He also serves on the Riverfront Park Community Foundation. Bruce is a graduate of the Leadership Denver program. Bruce grew up in Gettysburg, Pennsylvania, and spends most of his free time in the mountains skiing, hiking, and cycling. Susan Fox, J.D., M.A. 152 Paradise Rd. Golden, CO sfb823@aol.com Chapter 14 Revocable Trusts Susan Fox earned her law degree at the University of Texas and recently completed a Masters Degree of Bioethics in Europe. Ms. Buchanan was actively involved in the development of the Colorado Patient Autonomy Act and in the implementation of medical advance directives in Colorado. She has worked extensively with physicians, chaplains, and ethics committees in the Denver area on numerous end-of-life matters, and she confers frequently with hospices and nonprofit organizations on projects and policies involving patients rights, do-not-resuscitate orders, advance directives, and related issues. Ms. Fox is a member of the Advance Directives Coalition and the board of directors of the Colorado Healthcare Ethics Forum. She has served as adjunct faculty at the University of Denver College of Law, and as an instructor in bioethics at Regis University. Magistrate (Retired) Sandra Franklin Arbitrator/Mediator Legal Resolution Center 7907 Zenobia St. Westminster, CO sandiefranklin@msn.com Probate Coordinator State Court Administrator s Office 101 W. Colfax Ave., Ste. 500 Denver, CO sandra.franklin@judicial.state.co.us Chapter 46 Protected Persons Sandra Franklin served as the Denver Probate Court magistrate for 16 years before retiring from that position. As the Probate Court magistrate, she presided over more than 10,000 probate hear- (9/11) xvii

14 Colorado Estate Planning Handbook ings, settlement conferences, and mediations. She is currently a mediator with the Legal Resolution Center and is the statewide probate coordinator with the State Court Administrator s Office. Ms. Franklin received her law degree from the University of Colorado School of Law. She received her undergraduate degree in Communications from Metropolitan State College. She is a member of the National College of Probate Judges and is an active member of the Colorado Bar Association. She has served as the chair of the Statutory Revisions Committee and the Judicial Liaison Committee and as a member of the Probate Council. She is a frequent CLE speaker and has written for The Colorado Lawyer. Jessica C. Greene, Esq. Wiegand - Attorneys & Counselors, LLC 280 E. 20th Ave. Denver, CO jessicacg@wiegandattorneys.com Chapter 40 Estate Tax Marital Deduction Jessica Greene practices in the areas of estate planning, probate, small business formation, and taxation. Ms. Greene received her Bachelor of Arts, cum laude, from the University of California at Santa Cruz and received her J.D. from the University of Denver Sturm College of Law. While attending the University of Denver, Ms. Greene served as a staff editor for the University of Denver Law Review. She is a member of the American, Colorado, and Denver bar associations and is active in the Trust and Estate Section of the Colorado Bar Association. Susan R. Harris, Esq. Susan R. Harris & Associates, LLC 5600 Greenwood Plaza Blvd., Ste. 255 Greenwood Village, CO suzy@srhassoc.com Chapter 24 Fiduciaries Chapter 39 Allocation of Estate and GST Taxes Chapter 41 Generation-Skipping Transfer Tax Strategies and Techniques Chapter 43 Advanced Estate Planning Techniques Susan R. Harris is in private practice in Greenwood Village, Colorado, at Susan R. Harris & Associates, LLC. She practices in the areas of estate planning, probate and trust law, and estate, gift, and generation-skipping taxation. She received her B.A. summa cum laude in 1979, and her J.D. in 1982 from the University of Denver, where she was managing editor of the Denver Law Journal. xviii (9/11)

15 About the Authors Ms. Harris is a member of the Trust and Estate Section of the Colorado and American bar associations. She has been a Fellow of the American College of Trust and Estate Counsel since She has served on the Board of Governors and the Trust and Estate Council of the Colorado Bar Association. Ms. Harris has lectured on topics relating to estate and trust planning and administration and has authored a number of articles on probate and estate planning issues. She has taught at the University of Denver College of Law as a lecturer at law in Wills and Trusts. She currently is serving on the Colorado Bar Association Trust and Estate Section Committee on Estate Tax Apportionment. Bette Heller, Esq. Bette Heller, P.C E. Euclid Dr. Centennial, CO BHellerEsq@earthlink.net Chapter 15 Joint Revocable Trusts Bette Heller is in private practice with offices in both Centennial and Englewood. Her practice is limited to estate planning, estate and trust administration, probate, and Medicaid planning. Ms. Heller received her Juris Doctor degree from the University of Denver College of Law in As a member of the Colorado Bar Association, Ms. Heller has been a voting member of the Trust and Estate Section Council, and a member of the Elder Law Section. She has also been an active member of the Statutory Revisions Committee since 1984, and has served as its co-chair, chair, and legislative liaison. She was involved in the drafting and passage of the Colorado Probate Code II, which became effective on July 1, 1995, and is the author of the Colorado Pets Trust Statute. Ms. Heller is also a current board member of the Aurora Bar Association, a current member of the Arapahoe County Bar Association; and a past member of the Denver Bar Association, the Douglas/Elbert County Bar Association, the Centennial Estate Planning Council, and the Douglas County Seniors Council. Ms. Heller has authored several articles on legal issues for both the legal community and the general public, including The Colorado Lawyer. She has been a lecturer at a number of continuing legal education programs, and for Senior Law Day. (9/11) xix

16 Colorado Estate Planning Handbook Laura S. Hundley, Esq. Holland & Hart LLP 1800 Broadway, Ste. 300 Boulder, CO Chapter 45 Grantor Retained Annuity Trusts Laura Hundley is a partner at Holland & Hart LLP, in Boulder. She is the leader of the firm s Private Client Group. Ms. Hundley focuses her practice on estate and tax planning, wealth transfer planning, and charitable gift planning for high net worth individuals. She is a fellow of the American College of Trust and Estate Counsel (ACTEC) and is listed in Best Lawyers in America and Colorado Super Lawyers. She serves as Vice Chair of the Estate and Gift Tax Committee of the American Bar Association Section of Taxation. She is a member of the Rocky Mountain Estate Planning Council, the Trust & Estate Sections of the Colorado and Boulder County Bar Associations, and the Massachusetts Bar Association. She is a frequent speaker, both nationally and locally, on estate and wealth transfer planning topics. Ms. Hundley received her A.B. degree from Harvard College and her J.D. degree from Cornell Law School. Laurie A. Hunter, Esq. Wade Ash Woods Hill & Farley, P.C. 360 S. Monroe St., Ste. 400 Denver, CO lhunter@wadeash.com Chapter 1 Estate Planning Laurie A. Hunter is a shareholder with Wade Ash Woods Hill & Farley, P.C., in Denver, Colorado. She received her J.D. from the University of Denver College of Law in 1981 and has been in private law practice in Denver since then. Ms. Hunter was elected as a Fellow of the American College of Trust and Estate Counsel in Ms. Hunter is active in the Trust and Estate Section of the Colorado Bar Association and is a frequent speaker on trust and estate issues. She was chair of that Section for the fiscal year and was secretary/treasurer in and She was also the chair of the Colorado Estate Planning (Orange Book) Forms Committee in , and she currently serves on the Statutory Revisions Committee. Ms. Hunter also served on the Uniform Trust Code Committee and the Uniform Probate Code II Steering Committee. She is the author of Gifts To Minors, First Ed. (CLE in Colo., Inc. Supp. 2009), and was editor of The Green Book: Selected Colorado Materials on Wills, Estates, Trusts, and Taxes from 1986 to xx (9/11)

17 About the Authors James F. Ingraham, Esq. Stiff, Zisman & Ingraham, P.C Cherry Creek North Dr., Ste. 650 Denver, CO Chapter 35 Special Use Valuation James F. Ingraham is an attorney and shareholder in the Denver law firm of Stiff, Zisman & Ingraham, P.C., and practices in the area of wills, trusts, estate planning, estate and gift taxation, and probate administration. He is a member of the Colorado and American bar associations. He received his law degree from the University of Maryland in 1966 and his undergraduate degree from the University of Colorado in He was admitted to the practice of law in the District of Columbia in 1970 and in Colorado in Prior to entering law practice in 1986, Mr. Ingraham served for 19 years as a tax law specialist and as an estate tax attorney with the Internal Revenue Service in Washington, D.C. and Denver, including 10 years as manager of the Estate and Gift Tax Examination Group in the Denver District Office. He is an active member of the Trust and Estate Section of the Colorado Bar Association and has served as chair of the Trust and Estate Council ( ). He is currently a member of the Orange Book Forms Committee, which publishes Colorado estate planning forms. He is a Fellow of the American College of Trust and Estate Counsel (ACTEC), and has been a frequent lecturer for CLE in Colorado, Inc., on various trust and estate topics. Articles published by Mr. Ingraham include Maximizing Estate Tax Savings with Special Use Valuation, The Colorado Lawyer (July 1987), and The Pure Equity Trust : A Tax Bomb for the Unwary, The Colorado Lawyer (April 1997). He is also a frequent lecturer on the subject of estate planning and transfer taxation, and has covered such topics as The Uses of Trusts in Estate Planning, Special Use Valuation, Generation-Skipping Tax Planning, Ethics in Estate Administration, and IRS Examination of Estate, Gift, and Generation-Skipping Tax Returns. (9/11) xxi

18 Colorado Estate Planning Handbook Erica L. Johnson, Esq. Ambler & Keenan, LLC 950 S. Cherry St., Ste Denver, CO Chapter 10 Non-Traditional Families Erica Johnson is an associate in the law firm of Ambler & Keenan, LLC. She received her B.S. in Broadcasting Management from Northern Arizona University in She was awarded her Juris Doctor from the University of Denver College of Law. Erica s practice emphasizes estate planning, probate, trust administration, and second parent adoption. She is a member of the American Academy of Estate Planning Attorneys. She has been appointed by the Denver Mayor to the Mayor s GLBT Commission for and is currently serving as chair of the Commission. Her other professional associations include membership in the Denver Bar Association, Trusts and Estates Section of the Colorado Bar Association, Colorado Women s Bar Association, Colorado Lesbian and Gay Bar Association, Denver Gay and Lesbian Chamber of Commerce, the Society of Financial Service Professionals, and the Women s Estate Planning Council. She is a frequent speaker and author on the topic of estate planning for non-traditional families. Erica was awarded the Professional Woman of the Year award from the Denver Gay and Lesbian Chamber of Commerce in She is a Colorado native, born and raised in Littleton. Eric R. Kaplan, Esq. Engel & Reiman pc The Equitable Building th St., Ste. 500 Denver, CO e.kaplan@engelreiman.com Chapter 16 Irrevocable Trusts Mr. Kaplan, an associate at Engel & Reiman pc, received his Bachelor of Arts degree in United States History from the State University of New York at Albany in 1995 and his Juris Doctor degree from Quinnipiac University School of Law, Hamden, Connecticut, in Mr. Kaplan specializes in estate planning and asset protection planning in Engel & Reiman pc s Integrated Estate Planning Department. Mr. Kaplan has co-authored two articles that were published in the Journal of International Taxation, including Incorporating Offshore: Tax and Asset Protection Guide in June 2003 and A Guide to Foreign Irrevocable Life Insurance Trusts in February Mr. Kaplan also co-authored Third-Party Trusts: Tax Benefits and Asset Protection, which was published in the Journal of Financial Planning in November 2007; Recent Developments in Contempt Law Involving Offshore xxii (9/11)

19 About the Authors Trusts, which was published in Insights & Strategies in April 2009; and You Created a Trust So Now What? which was published in the Journal of Practical Estate Planning in June-July Mr. Kaplan is admitted to practice law in Colorado and is a member of the American Bar Association, the Colorado Bar Association, the Denver Bar Association, and the Trust and Estate Section of the Colorado Bar Association. Randolph M. Karsh, Esq. Sparks Willson Borges Brandt & Johnson, P.C. 24 S. Weber St., Ste. 400 Colorado Springs, CO rmk@sparkswillson.com Chapter 44 Estate, Gift, and Income Taxation of Nonresident Alien Individuals Randolph M. Karsh is Special Tax Counsel to the firm of Sparks Willson Borges Brandt & Johnson P.C., where his practice focuses on federal income and transfer tax planning. He has broad experience in foreign and domestic business transactions involving corporations and partnerships, the taxation of investments therein and the operations thereof, and the structuring of foreign investments in the United States. He is fluent in Spanish and spent part of 1994 as special tax counsel to the Mexico City law firm of Barrera, Siqueiros y Torres Landa, S.C. On the domestic front, he counsels businesses in choosing the proper entity for income tax minimization and asset protection, especially the business and tax advantages of operating in noncorporate form; counsels clients regarding effective estate tax and GST planning; asset protection planning; and has organized and served on boards of a number of tax-exempt foundations (both public and private). He is also a member of a number of professional associations, including the American Bar Association Tax Section, and has been actively involved in committee activities and projects, including a recent committee project involving interpretation of the 2010 carryover basis Code provisions and the reporting requirements thereof. Mr. Karsh obtained his J.D. from the University of Denver College of Law, and in 1974 earned a Master of Laws (Taxation) from New York University. (9/11) xxiii

20 Colorado Estate Planning Handbook Donald H. Kelley, Esq. Of Counsel, Kelley Scritsmier & Byrne, PC 9421 Viaggio Way Highlands Ranch, CO Chapter 34 Farm and Ranch Estate Planning Mr. Kelley received his B.Sc. and LL.B (1952) from the University of Nebraska. He was a partner in Kelley Scritsmier & Byrne, North Platte, Nebraska (to which firm he is presently Of Counsel) and has practiced in Denver since He is a member of the bars of Nebraska (past chair: Probate Section) and Colorado (past chair: Agricultural Law Section). He has served on the governing boards of the American Bar Association Real Property, Trusts and Estates Section and American College of Tax Counsel. He is a past regent (past chair: Technology in the Practice Committee) of the American College of Trust and Estate Counsel, and has served on the Board of Directors of the American Agricultural Law Association. He is the author of The Electronic Practice (Wealth Management Press 2008), and a co-author of Estate Planning for Farmers and Ranchers (ThomsonReuters 2007), Family Business Organizations (ThomsonReuters 2007), and Intuitive Estate Planner Software (ThomsonReuters 1998). Walter M. Kelly II, Esq. Miller & Steiert, P.C W. Littleton Blvd., Ste. 100 Littleton, CO wkelly@m-s-lawyers.com Chapter 13 Inter Vivos Trusts Walt is a shareholder at Miller & Steiert, P.C. where his practice for the past 16 years has been limited to estate planning, trust and estate and administration, preparation of federal and state estate tax returns, probate and selected estate litigation. He is a Fellow of the American College of Trust & Estate Counsel (ACTEC). He is the immediate past Chair of the Colorado Trust and Estate Council ( ). He is the past vice chair and former secretary treasurer of the T & E Council. He previously served two years as a member of the Colorado Trust and Estate Council ( ). He is the past chairman of the Statutory Revisions Committee of the Trust and Estate Section and the past chair of the Risbry Subcommittee, which addressed the role of a personal representative in estate litigation. He was a 5-year member of the Uniform Estate Tax Apportionment Act Subcommittee, which recommended adoption of the Act in Colorado and served on the SRC subcommittee on Trust Decanting. He authored a Colorado Lawyer article entitled, A Personal Representative s Right to Participate in a Will Contest, published in April Since 2009, he has been annually listed in The Best Lawyers of America and in the 2010 and 2011 editions of Colorado Super Lawyers. He received his B.A. from the University of Vermont in 1970 and his J.D. from the University of Denver in xxiv (9/11)

21 About the Authors Michael A. Kirtland, Esq. Kirtland & Seal, L.L.C. 90 S. Cascade, Ste. 480 Colorado Springs, CO (719) Chapter 5 HIPAA Issues in Estate Planning Chapter 6 Advance Directives Michael Kirtland is a partner in the Colorado Springs law firm Kirtland & Seal, L.L.C. His practice is concentrated in the areas of trusts and estates, estate planning, wills, probate and ancillary probate, elder law, guardianship and conservatorship, marital agreements, and taxation related to those areas. He also does mediation in these areas of practice. Mr. Kirtland was admitted to practice in Alabama in 1994 and in Colorado in He is also admitted to the U.S. District Courts for the Middle District of Alabama and the District of Colorado, the U.S. Courts of Appeals for the Tenth and Eleventh Circuits, the U.S. Tax Court, and the U.S. Supreme Court. He attended Coe College, where he received his B.A. in 1974, and the University of Colorado at Colorado Springs, where he received an M.P.A., summa cum laude, in He received his J.D., magna cum laude, from Faulkner University in 1993, and his LL.M. in Taxation from the University of Alabama in Mr. Kirtland is a member of the El Paso County, Colorado, and American bar associations. He is a member of the El Paso County Bar Association Probate Section; the Colorado Bar Association Elder Law, Trust and Estate, and Alternative Dispute Resolution sections; and the American Bar Association Senior Lawyers Divisions and the sections on Alternative Dispute Resolution and Real Property, Trust and Estate Law, of which he is past chair of the Elder Law Group. He is also an acquisitions editor for the Book Publishing Committee. Mr. Kirtland is a member of the Ethics Committee of the El Paso County Medical Society and the Ethics Committee of the Colorado Bar Association. Mr. Kirtland serves as a member of the Judicial Performance Commission for the Fourth Judicial District of Colorado. He belongs to the Alabama State Bar (where he is a Registered Mediator), the American Inns of Court in Colorado Springs, the National Academy of Elder Law Attorneys, the National Elder Law Foundation, where he is a member of the Board of Directors, the Air Force Association, and the Military Officers Association of America. Mr. Kirtland is one of only ten Certified Elder Law Attorneys in Colorado. (9/11) xxv

22 Colorado Estate Planning Handbook Mark D. Masters, Esq. Horen, Lockwood & Masters, LLP 9559 S. Kingston Ct. Englewood, CO Chapter 20 Inter Vivos Gifts Mark Masters is a partner of Horen, Lockwood & Masters, LLP, and limits his practice to estate planning, business planning, estate administration, and tax. Mr. Masters is past chair of the CBA Trust and Estate Section, and former chair of the Section s Statutory Revisions Committee and member of the Colorado Probate Code (UPC II) Revision Committee. In addition to writing legislation, Mr. Masters co-edited the first and second editions of the CBA Senior Law Handbook; has written articles for The Colorado Lawyer, The Denver Post, and the Rocky Mountain News; and is contributing editor of the Colorado Will and Estate Planner for Bradford Publishing. Mr. Masters holds a B.A. with distinction from the University of Colorado at Boulder and a J.D. from Washburn University School of Law. He is an adjunct faculty member of the Paralegal Department of Arapahoe Community College, and has lectured for the University of Denver College of Law, the University of Colorado College of Law, and Regis University. Mr. Masters was awarded the Doyle Award of Excellence in 2007 by CLE in Colo., Inc. of the Colorado Bar Association for his contributions to continuing education and publications. Mr. Masters is a Fellow of the Colorado Bar Foundation, member of the CBA Tax Section, past president of the Arapahoe Community College Foundation, and is listed as a Colorado Super Lawyer. Lauren W. Matthews, Esq. Carleton Gotlin PC 1580 Lincoln St., Ste. 700 Denver, CO lmatthews@carletongotlinlaw.com Chapter 47 Basics of Oil and Gas Lauren W. Matthews is an associate with Carleton Gotlin PC, where her practice focuses primarily on natural resources title examination, including reviewing and interpreting various industry contracts and drafting curative documents. Currently, Lauren is a member of the Colorado and Texas State Bars, and is a member of the Natural Resources Section of the Colorado Bar Association. Additionally, Lauren is a member of the Denver Association of Oil and Gas Title Lawyers and the Denver Association of Petroleum Landmen. xxvi (9/11)

23 About the Authors Lauren is originally from Ozona, Texas and moved to Colorado to study psychology at the University of Denver. At the University of Denver she was inducted into the Phi Beta Kappa National Honor Society and graduated magna cum laude in After graduation, Lauren worked for a family law firm for several years before attending the Southern Methodist University Dedman School of Law in Dallas, Texas; where she focused on tax and oil and gas law. Lauren served as a student attorney in the SMU Tax Clinic, representing clients before the I.R.S. and the United States Tax Court, and volunteered for the VITA Program preparing and filing income taxes for low-income individuals. In addition, Lauren was a member of the SMU Energy Law Association. After graduating cum laude in 2008, Lauren was a law clerk for Carleton Law Firm until she joined the firm as an associate upon passing the Colorado bar. Marilyn W. McWilliams, Esq. Moye White LLP th St., 6th Floor Denver, CO marilyn.mcwilliams@moyewhite.com Chapter 31 Marital Dissolution and Estate Planning Ms. McWilliams received her undergraduate degree from the University of Colorado and her law degree from the University of Denver. Her practice focuses on estate planning, estate administration, trusts, business planning, and elder law. She is the author of Life After Death: a Legal Practical Guide for Surviving Spouses (Bradford Publishing, 2005). Ms. McWilliams is a member of the Denver and Colorado bar associations and is a past president of the Denver Estate Planning Council. Shelly D. Merritt, J.D., CPA S.D. Merritt & Associates, PC 1942 Broadway, Ste. 314 Boulder, CO shelly@sdmerrittlaw.com Chapter 29 Community Property Ms. Merritt graduated with honors from the University of Texas at Arlington with a Bachelor of Business Administration in Accounting in She received her law degree from the University of Texas School of Law in 1991 and is also a Certified Public Accountant. She is an AV-rated attorney with over 20 years of experience representing individuals, families, closely held businesses, executives, and small business owners. She is a Fellow of the American College of Trust and Estate Counsel, a past council member of the Trust and Estate Section of the Colorado Bar Association, and past chair of its Statutory Revisions Committee. She is licensed to practice law in Colorado and Texas. (9/11) xxvii

24 Colorado Estate Planning Handbook Ms. Merritt s estate planning practice focuses on sophisticated estate, asset protection, and wealth transfer planning; and probate and estate and trust administration. Her small business practice focuses on the formation of closely held, for-profit and not-for-profit entities; drafting and filing of entity documents; tax planning and advice; negotiation of business transactions; and general corporate counsel services. She is a past trustee and chair of the Legal and Audit Committees of The Community Foundation Serving Boulder County. She served as co-chair of the Taxation, Estate Planning and Probate Section of the Boulder County Bar Association ( ), and as the chair of the Programs Committee of the Colorado Women s Bar Association ( fiscal year). Ms. Merritt authored Reforming Charitable Remainder Trusts in Colorado under the New IRS Procedures, an article published in the September 1999 issue of The Colorado Lawyer, and Planning for Community Property in Colorado, an article published in the June 2002 issue of The Colorado Lawyer, and has lectured on various estate planning topics. Maggie A. Mitchell, J.D., AEP, CLU, ChFC ING 1290 Broadway Denver, CO Maggie.Mitchell@us.ing.com Chapter 19 Life Insurance and Annuities Maggie Mitchell is the Vice-President of Advanced Sales for ING Insurance. She received her B.A. from the University of San Diego, her J.D. from Thomas Jefferson School of Law, and her CLU and ChFC designations from the American College. She is a member of the California and Arizona state bars and is a Registered General Securities Principal. Ms. Mitchell has published numerous articles on tax, legal, and life insurance topics in national publications and is a frequent speaker at life insurance and financial services industry meetings, where she has a reputation for utilizing creativity, ingenuity, and simplicity to explain complex planning strategies. She has more than 30 years experience in financial services, tax, legal, and insurance planning, and specializes in innovative designs utilizing life insurance. xxviii (9/11)