Are you curious about how to establish a living trust and transfer your property? The process involves drafting a living trust with the help of an attorney and then funding it. Read the article below for a detailed guide on setting up a trust.
What is a living trust?
A living trust is a legal document containing instructions on distributing your assets after death. Unlike a will, the trust controls all your assets, protecting them from probate after death and during incapacity. The document is created while you are alive.
Is a living trust right for me?
Is a living trust right for you? Living trusts are not just for the wealthy; they can benefit anyone, depending on their needs. A trust is an effective way to safeguard your assets during and after your lifetime.
You may not need a living trust if you have a small estate, as Colorado offers a simplified estate process for estates under a certain amount. You should consult an attorney to determine the best course of action for you and your family.
Do I still need a will if I have a trust?
Even if you have trust, you should consider having a will drafted. A will can be an extra precaution in addition to a trust and will ensure any assets, including homes not added to the trust, will be protected upon your death. Additionally, suppose you have wishes for your underaged children or pets. In that case, you will want to have your wishes documented in a formal legal document called a last will and testament.
How is a living trust funded?
Trusts are funded by retitling property and other assets in the name of the trust. Once the assets are retitled, the trustee can manage them as instructed by the trust. It is important to note that a trust can be created and not funded. Sometimes, an individual may create a “pour-over-will” to direct all assets to the trust after death. For more information on what to do after you set up a will, read our article here or reach out for an initial consultation.
How is a living trust administered?
A living trust will include instructions on how to administer it. Unlike wills, trust administration does not require court involvement and allows for the private distribution of the trust’s assets.
Do you have any questions? Contact us for an estate planning consultation, and we will answer all your questions about setting up a Living Trust in Colorado.
For comprehensive living trust services in Denver and throughout Colorado, call The Germany Law Firm, P.C. at 303-454-3711 or contact us online to schedule a consultation.
Sources: NOLO; Colorado Bar
