Who Should Have Trusts? 9 Situations to Consider.
Most people have assets that they want to remain protected while they are alive AND after they pass away. In many cases, a last will and testament is sufficient to plan for how you want your assets distributed after you are gone. However, some people might benefit from setting up a revocable or irrevocable trust instead of a will.
Here are 9 examples of situations that might warrant this type of estate plan in Colorado:
- You are concerned that you might become incapacitated and unable to care for your estate and/or manage your assets in the future (or you simply want to plan for any type of emergency situation).
- You have a person in mind that you would want to act as the trustee to manage your estate while you are alive and make the distributions pursuant to the terms of the trust after you pass away.
- You want to designate who you want to receive your estate after you pass away.
- You do not want your heirs to be burdened with the probate process after you pass away. (Trusts are not typically subject to probate.)
- You want the value of your estate to be kept private – out of public record. (Wills become public after you pass away .)
- You and/or your beneficiaries have creditors who may try to file claims. (If your assets are held in an irrevocable trust, creditors cannot satisfy judgements against these assets.)
- You want to reduce or eliminate the need for your beneficiaries to pay estate taxes on their inheritance.
- You are willing to invest more money into the creation and execution of a trust to protect your estate and your loved ones.
- You are willing to continually update your trust and retitle any assets into the trust’s name to avoid probate.
Before you decide to create a trust on your own, you need to understand the legal ramifications between a revocable and irrevocable trust. Creating the wrong type of trust for your unique situation could cause you – and your loved ones – headaches in the future. An experienced estate planning attorney in Denver can help you draft the right documents to protect your assets. Keep in mind that there are other documents that should also be considered such as powers of attorney, a living will, do not resuscitate orders and more. The legal team at The Brown Law Firm, LLC can help you understand all of these matters and help you draft documents to set your mind at ease. Contact us today at (303) 339-3750 or send us a message online to start the conversation about your estate and the best ways to protect it.