High Net Worth Estate Protection with a Living Trust Colorado
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Understanding & Establishing a Living Trust Colorado: Your Complete Guide
A living trust Colorado is a legal document that authorizes a person to gain legal ownership of the property of another person once that person is deceased in order to avoid probate. Find out more here.
What Is a Living Trust Colorado?
According to the 2021 Wills and Estate Planning Study by Caring.com, about one-third (32.9%) of American adults have a will, living trust, or other estate planning documents in place. Unfortunately, this number is far too low. Without an estate plan, transferring a deceased person’s estate to inheritors or settling the final affairs of the decedent can bring about a variety of challenges. One of the several estate planning options to determine what happens to your estate and assets when you’re gone is a living trust.
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.
Colorado Living Trust vs Irrevocable Trust: Know Your Options
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:
Revocable Living Trust Colorado
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.
Irrevocable Trust Colorado
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.
What Are the Benefits of Living Trusts in Colorado?
Here are some of the benefits of having a living trust:
Allows You to Bypass Probate
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.
Keeps Your Affairs Private
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.
Allows You to Choose a Successor Trustee
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.
Provides Adequate Protection for Assets
A living trust also offers adequate protection to your assets in the event of mental incapacitation or adverse action from creditors.
Allows Consideration for Minor Children
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.
How to Create a Living Trust in Colorado
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:
- Determine whether to make an individual or shared trust.
- Identify the property and assets you want to include in the trust.
- Choose a successor trustee.
- Decide who will be the beneficiary and heirs of the trust.
- Hire an experienced lawyer to help draft the trust document.
- Sign the document in front of a notary public.
Living Trust Forms 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.
Living Trust vs. Will Colorado
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:
- A trust can help bypass the probate process. In contrast, a will still has to pass through the probate court to verify its validity.
- Assets can be kept for minor dependents or beneficiaries in trust until a future date. You will have to appoint a guardian for any minor children in your will.
- A trust can help protect your estates in the event that you become incapacitated.
- Trusts always remain private. In contrast, a will is usually a public record since it goes through probate.
Additional Colorado Living Trust Options
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:
- Revocable Trusts
- Irrevocable Trust
- Special Needs Trust
- Asset Protection Trust
- Charitable Trust
- Tax By-Pass Trust
- Constructive Trust
- Spendthrift Trust
An experienced Colorado estate planning attorney can review your unique needs and help determine which trust option is best for you.
Work With Experienced Estate Planning Attorneys in Denver CO
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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Glen And Gracie
“My wife and I are very grateful for the careful explanation of the value of having our estate plan in place. Matt Meuli patiently answered all of our questions and made sure we had all the information we needed. We highly recommend Meuli Law Office for your estate planning needs. Now our beneficiaries will be in great hands and not have to struggle through so many unknowns.”
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Lee & Linda
“Matthew Meuli, Attorney/Counselor has been a friend of mine and Linda’s for the past four years. Matt and I met through Business Network International. At BNI Matt presented himself as a very qualified counselor for planning a trust. I had been a beneficiary of my mother’s trust and learned the value of a will versus a trust. We were able to set up the L&L Trust in an easy and understandable way with Matt’s professional help. As we have seen in the last two months life can change in a moment and having a trust in place gives us tremendous security.”
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Sandie and ed
“When my father passed unexpectedly, it was surprising how much was involved. We had no idea what to do, where to go, how to find info that wasn’t written on his 1 page handwritten will. We will be forever grateful that we had Matt Meuli by our side showing us how to navigate through my father’s poorly prepared will. We have since set up a trust for our little ones and have no worries for those left behind. Matt thoroughly explained each part of the process in an easy to understand way. We now have peace of mind. Thank you Matt!”