A living trust can be described as a legal document that establishes a fiduciary relationship whereby a person (guarantor or trustor), during their lifetime, appoints a third-party (successor trustee) to manage their financial affairs and distribute assets to beneficiaries and heirs upon their death or incapacity. Whether you have a small or large estate, having a properly drafted living trust is important to protect your assets, family members, or minor children and bypass the probate process.
At Legacy Law Group, we are committed to providing comprehensive guidance and advocacy in the legal matters of estate planning, including wills and living trusts. As experienced Denver estate planning attorneys, we will review your personal situation, help you understand your available legal options, and determine the right plan that best fits your unique needs and that of your family.
In Colorado, one of the available options to avoid the expensive and lengthy probate process is a living trust. It involves creating a trust and transferring certain assets owned by the estate, including real estate property, savings, business interests, investments, and bank accounts, to the trust. Also, you will appoint a person (successor trustee) to help manage and distribute assets to beneficiaries and heirs upon your death.
There are two major types of living trusts in Colorado – revocable and irrevocable trust. If you aren’t sure which type best meets your needs, don’t worry about it! Our dedicated legal team can help you weigh your options. Here’s a brief overview of each:
A revocable trust, commonly called a living trust, is a trust that can be modified or canceled by the guarantor at any time, while he or she is still alive. The guarantor retains a degree of control over the assets in the revocable living trust and will keep the benefit of all properties during their lifetime.
In an irrevocable trust, the guarantor will relinquish control over the property or assets placed in the trust. Once the agreement is signed, there is no going back. An irrevocable trust helps protect assets in the trust from seizure by creditors and allows you to avoid paying estate taxes on them. However, assets placed in an irrevocable trust will remain intact and can’t be revoked or modified, which is why consulting an attorney is an important first step before you take any action.
Here are some of the benefits of having a living trust:
One of the major benefits of having a trust is to avoid probate. With this, your surviving loved ones can avoid the delays and expenses involved in probate court proceedings upon your passing.
Additionally, a living trust allows you to keep your affairs private and offers you the needed control. Trust assets can be distributed to a spouse, heirs, and beneficiaries without the publicity of the Colorado probate court.
Also, living trusts allow you (the guarantor) to select a trusted person (the successor trustee). The trustee will have the responsibility to manage your estate and distribute trust assets to inheritors upon your death.
A living trust also offers adequate protection to your assets in the event of mental incapacitation or adverse action from creditors.
Living trusts also allow assets and properties to be reserved for minor children until a future date. For instance, you can keep away money or property in a trust until your minor beneficiary reaches a specified age.
These are just a few of the many benefits of having a living trust. At Legacy Law Group, we work diligently to be our clients’ legacy planners and advisors for life. When you consult our attorneys, we will get to know you and your family to help you determine how this option and related estate planning documents could benefit your unique situation.
Although it’s generally a good idea to let your attorney guide you through the process of creating a living trust in CO, it helps to know what to expect going in. The following is a brief overview of the steps to create a living trust in the state of Colorado:
A Colorado living trust form is a legal document that controls the transfer of any asset placed in the trust by the guarantor. During your research, you may find sources that allow you to download the Colorado Living Trust form online, but it’s always best to consult an attorney before attempting to file this form yourself.
Legacy Law Group is proud to serve individuals, families, and businesses throughout the state of Colorado. If you need assistance filling out your living trust forms in Colorado or want to understand how your trust will be administered, contact Legacy Law Group today to schedule a free one-on-one consultation.
It’s not uncommon for our clients to confuse a living trust and a will in Colorado. Here are some key differences between a living trust and a will to help you better understand your options for protecting your assets after you die:
While the basic types of living trusts in Colorado are revocable and irrevocable, there are other available options. The different living trust options in Colorado include:
An experienced Colorado estate planning attorney can review your unique needs and help determine which trust option is best for you.
Setting up your living trust involves several complexities. Therefore, having proper guidance is crucial when drafting documents to ensure legal compliance. If you need assistance drafting your trust or estate plan, contact Legacy Law Group today to schedule a free consultation.
Our experienced Denver estate planning attorney will assist you in drafting your trusts and personal estate plans and help you achieve your objectives for transferring your property, assets, and wealth to your beneficiaries and heirs. As your legacy planners for life, our team will work diligently to address your unique needs and concerns, as well as those of your dependents and surviving family members.
We proudly serve clients throughout the state of Colorado. Contact our law firm today by phone or through the contact form on our website to get the help you need.
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