A reverse mortgage shouldn’t significantly impact your estate plan since it’s treated as a debt that doesn’t need to be repaid until the homeowner dies or sells the property. The mortgage balance is paid off when the home is sold, and any remaining equity is distributed to heirs. However, it’s still advisable to have the specific terms of the reverse mortgage contract reviewed by an estate planning attorney.

In Colorado, estates valued over $64,000 typically require formal probate proceedings. This means a court will oversee the process to ensure the will is valid, there are no disputes, and the assets are distributed correctly. Estates worth less than $64,000 that meet certain conditions may be eligible for a more informal probate process.

Whether a trust helps you avoid estate taxes depends on the type of trust. Revocable living trusts generally do not help with estate tax avoidance. Irrevocable trusts, like irrevocable life insurance trusts or Medicaid asset protection trusts, are designed to potentially reduce estate taxes. However, the current estate tax exemption is relatively high, so most people don’t need to worry about it.