Trusts Lawyer in Colorado
Securing the future of your loved ones is every person’s goal in life. They want to know that their loved ones will be taken care of once they are gone. If you want to protect your loved ones’ future, consider learning the basics of trust and what it can do for you and your loved ones.
For many years, our law firm has assisted clients with wills, trusts, and estate planning cases. We provide competent legal advice and representation to advance their best interests. Our lawyers are trial-tested professionals with years of experience in bankruptcy and estate planning.
Why do I need a Trusts Lawyer in Colorado?
Lawyers play an important role in setting up your trust, particularly in assisting you in writing the terms of your trust. They are trained as technical writers so that when they prepare legal documents, they are concise and have just one interpretation. They can also assist with trust-related procedures such as removing or appointing trustees, revising trust conditions, and requesting an accounting of the trust.
A trust may also be contested or disputed. So, if you are a beneficiary of a trust and the other beneficiaries wish to question the trust’s contents, you should have an attorney on your side.
Luckily for you, our experienced estate planning lawyers have been dealing with these cases for years. They have been strong advocates for the best interests of our clients by providing them with competent legal advice and service.
Consult our lawyers about trust now!
What is Trust?
A trust, in general, is a legal fiduciary arrangement that allows you to dictate the terms of the management of your assets, including who will benefit from them and who will manage its administration. It is regarded as a valuable instrument in estate planning because of its benefits in tax reduction, avoiding probate litigation, and privacy.
Furthermore, there are three key entities in a trust that play a significant role in its creation, facilitation, and implementation. Here are the three parties involved in a trust:
- The Grantor – is the person or party who establishes the trust.
- The Trustee – A person or entity in charge of managing the trust’s day-to-day operations. He or she is responsible for ensuring that what is stated in the trust is properly administered.
- The Beneficiary – A person who is entitled to or may benefit from the assets of the trust.
Unlike the popular conception that trusts are solely for the affluent, trusts can be utilized for any estate, regardless of size. The core of a trust is to ensure that its assets are managed exactly as they intend, from the time the trust is established until long after their death.
Trust has its own set of advantages as an estate planning tool, including but not limited to the following:
- Avoid having to go through probate. A trust allows you to manage your assets through a trustee of your choice outside of probate and without the need for judicial processes (unless the trust is contested or disputed). Probate is regarded to be time-consuming, costly, and public. By avoiding, your named beneficiaries will save money, time, and effort.
- Provides more privacy. Records are deemed public in any probate process, which means that anybody can read the provisions of your will or the terms of its administration.
- Certain tax advantages are provided. A trust can be utilized to gain tax benefits. By transferring ownership of assets to a trustee, you can lower the amount of your estate. This reduces the amount of property subject to state and federal estate taxes.
- Protection from Creditors. By using a trust, you are allowed to transfer property ownership while at the same time retaining some control through stipulated terms of your trust agreement. The change in ownership here serves to limit creditors’ access to the properties.
- Beneficiary’s Security. Fortunately, trusts may also safeguard beneficiaries (e.g., minors, old parents, ill loved ones) who are unable to handle their assets by putting aside monies for them. Furthermore, it can assist the well-heeled spendthrifts in reducing their spending galore and lifestyle.
Types of trust
Because each type of trust serves a distinct function based on the grantor’s purpose, there are many different types of trust. Some are designated for minors, ill recipients, grandkids, charities, and so on.
However, in order to provide the groundwork for your understanding of trusts, the four most prevalent forms of trust will be explored in this article.
These examples, however, are simply the tip of the iceberg. Contact our Colorado trust lawyers if you want to know what is the best type of trust for you.
- Trust Inter Vivos (also known as Living Trust). This basically refers to a trust that was established while you were still living. It facilitates the transfer of assets to beneficiaries after the grantor’s death. While a will is an option, one disadvantage is that it must go through the probate process.
- Testamentary Trust. This term refers to trusts established after the grantor’s death. Generally, it follows the grantor’s last will and testament provisions. Unlike a living trust, a testamentary trust takes effect after the owner’s death. It is also irrevocable, meaning it cannot be revoked or altered. This is advantageous because it protects the assets from being constantly moved around and taxed.
- Revocable Trusts. From what the name indicates, the person who established the trust (the grantor) can revoke or change it at any point throughout his or her lifetime. This is a good option if you want to set up a trust while still having control over your estate and assets while you’re still alive.
- Irrevocable Trust. Unlike a revocable trust, this type of trust cannot be amended or altered once it is created or implemented. However, there are few instances where an irrevocable trust can be amended, provided all named beneficiaries consented to such.
How Do I Create a Trust?
Step 1: Consult with a Trusts Lawyer in Colorado.
It may appear that hiring a lawyer is not advantageous to you since you believe that trust is simple, but the fact is that attorneys do more than just draft your trust and collect a paycheck.
Their estate planning experience and understanding can assist you in better preparing for the future of your loved ones. As attorneys, they are aware of additional estate planning strategies that may be used in conjunction with your trust to secure its administration and get some benefits.
If you don’t have one, get in touch with our estate planning lawyers to help you set up a trust or discuss the best estate planning path for your situation.
Step 2: What is your purpose in creating a trust?
Planning and goal setting are the basic foundations of every dream or project. Just as when creating a trust, you must choose what goals you want your trust to play.
As you learned in the previous sections of this article, there are tons of types of trust that serve different purposes. So in order for you to know what type of trust you should choose, know first the purpose why you want a trust.
Step 3: Identifying the characters in a trust
As mentioned above, there are three main parties in a trust – grantor, trustee, and beneficiary. Because you are the one who establishes the trust, you are the grantor. Your trustee and beneficiaries are the people you need to be concerned about.
A beneficiary is somebody to whom you wish to leave your possessions. This might be your children, friends, relatives, grandparents, or anybody else. There are other trusts that cater to a wide range of beneficiaries, such as people with medical conditions.
On the other hand, choosing a trustee is critical since they are in charge of enforcing the trust’s conditions and terms. In order to administer the trust effectively and efficiently, consider looking for a trustee that is knowledgeable about the law and financial management.
Step 4: Start Creating Your Trust Terms
Once you are all set, t’s time to write down the terms of your trust. In general, you are free to include whatever terms you wish, as long as they do not break any laws, are difficult to accomplish, or are unconscionable.
Typically, the terms of your trust entail the following:
- What assets should be divided and distributed
- How is it distributed
- When does it have to be distributed?
- Who will gain from it?
- How should assets be invested?
- Your trustee’s discretion
It is important that you have an experienced colorado estate planning attorney to help you carefully craft the terms in your trust because sometimes, there will be disputes in a trust.
Start Securing Your Loved One’s Future With the Help of Our Trust Lawyer in Colorado!
An estate plan ensures asset protection and management. It allows you to leave anything to a family member or loved one so that they are cared for. If this is your goal, then our lawyers at Law Office of Clark Daniel Dray are well-equipped to assist you in fulfilling this dream.
Contact us today to set up a consultation meeting with our lawyers!