Trusts in Denver
One purpose of trusts is to leave property to beneficiaries in a manner that protects them while ensuring their underlying needs are met. Trusts can be created for beneficiaries such as:
- Spouses
- Children or grandchildren
- Special needs beneficiaries
- Beneficiaries with spendthrift tendencies or other issues
Benefits of Trusts
Trusts can be used to achieve specific tax planning objectives and can be created to take effect immediately or after you pass away. A fully funded revocable trust can help you avoid a probate proceeding at your death. Additionally, trusts typically are administered outside of the court system, so the terms of the trust remain private. A trust designates a trustee to handle the administration of the trust’s assets according to the trust creator’s (sometimes referred to as a settlor) wishes. A settlor can create a revocable trust, irrevocable trust or testamentary trust.
- Revocable living trusts can be altered at any time that the settlor is alive and has the required capacity to amend the trust. The settlor still has access to and control of their property while they are alive and of sound mind. The settlor still pays taxes on the income that the trust earns because the settlor is still the owner of the assets.
- Irrevocable trusts typically cannot be altered or revoked. In most instances, irrevocable trusts are created to take advantage of various tax planning strategies to reduce the settlor’s taxable estate.
- Testamentary trusts can be found in either a will or a revocable trust. A testamentary trust becomes effective at the death of the settlor and contains terms regarding the settlor’s wishes regarding how the beneficiary should receive distributions from the trust.
Our Denver estate planning lawyers will recommend the appropriate options for your unique situation. To learn more about creating a trust in Denver or anywhere in Colorado, contact us today.