Boulder Living Trust Lawyers Making Estate Planning Simple for Clients
When it comes to preparing for the future, there are many estate planning tools available to us. After we eventually pass on, if proper measures are not taken to protect an estate, then our family might fight amongst themselves for what they believe they deserve while the estate passes through public probate proceedings. To avoid this, one option for estate planning is to put your assets into a living trust.
Also known as revocable trusts, living trusts allow us to prepare and manage finances and property for our loved ones during our lifetime, with instructions for how to transfer income and properties upon our death. The trust’s creator, the grantor, may select multiple beneficiaries, including a spouse, son or daughter, and minors before they come of age, with terms about how the assets are to be released to them by the trustees. At the time of the grantor’s death, successor trustees will take overacting in the best interests of any beneficiary and pay money to any leftover debts.
At Rocky Mountain Wills & Trusts, our team of professionals has years of experience providing clients with unique strategies for building their estate plans. To better understand the benefits of living trusts, speak to an attorney at our firm. We would be proud to help advise and support your family as you go about the process of building your estate.
What Are the Benefits and Disadvantages of Creating a Living Trust?
Living trusts give you control over the management and disbursement of assets during your lifetime and include instructions about how to manage their transfer after the grantor becomes incapacitated or passes away. These are the simplest types of trusts from an income tax standpoint, as income is taxable to the trusts’ creators.
If you already have a Will, one might wonder why you might ever want to fund your own trusts. While both documents can take care of your loved ones and heirs after your death, larger estates risk going through the probate process with simply a will. Trusts, meanwhile, can keep matters more private and avoid probate courts. The home or vehicles you leave to your family members need not be a matter of public record.
While the state of Colorado does not have a separate estate tax, assets in a revocable trust may still be vulnerable to federal estate tax. If you have special concerns regarding federal estate tax, speak with one of our attorneys, who may be able to assist you.
What Are the Differences Between Revocable and Irrevocable Trusts?
The terms ‘revocable’ and a ‘living trust’ are interchangeable; they are different names representing the same thing. However, irrevocable trusts are something different. While the assets, terms, and beneficiaries of a revocable trust can be changed at any time, an irrevocable trust is in most case difficult or impossible to change. There are a few exceptions to this rule, but we believe it is better to do it right the from the start, rather than having to try to find an exception later. The only way that an irrevocable trust can be modified is with the full consent of the trust’s beneficiaries.
With a revocable trust, your assets are characterized differently. But you can maintain control over them, because you can still add or remove assets, change or even revoke the trust at any time. While your heirs may benefit from distributions from the trust after your death, while you are alive you can do whatever you wish with your assets. For this reason, a revocable trust does not give you asset protection from creditors or exempt you from taxes you may otherwise owe.
Meanwhile, with an irrevocable trust, you are giving up ownership to the assets. Usually, the beneficiaries of the trust then can only access and use the assets for the specific purposes outlined in the trust, usually: Health, Education, Maintenance, and Support. In addition, in most cases irrevocable trusts are created for the benefit of someone other than yourself, such as your children. This is one of the ways we can create asset protection for your heirs inheriting your assets. To better determine which trust option will best benefit your specific wishes and needs, please speak with one of our estate attorneys in in Boulder, CO.
Why Choose the Trust Attorneys of Rocky Mountain Wills & Trusts?
At our office, an attorney would be happy to assist you with the creation of your wills, trusts and other estate planning documents. We have years of experience serving clients Boulder and Denver, Colorado area, and understand that each client has their unique special needs. Our clients can expect a dedicated attorney-client relationship as we help you and your family plan for the days ahead.
Sometimes planning for the future means preparing for end-of-life situations. We understand that these are difficult, emotional subjects and will do our best to provide our services in both a professional and compassionate matter.
Schedule a Free Consultation with Our Estate Planning Attorneys
We all want to look out for our families. But nobody wants to think about what will happen to them in the event of our death or if we ever become incapacitated. With well-written trusts, clients don’t need to worry about the management and eventual transfer of their hard-earned properties.
At Rocky Mountain Wills & Trusts, we would be proud to advise you in the creation of a trust. Prospective clients wishing to schedule a free consultation, please call (720) 420-1039.