Denver Trusts Lawyer
Call (303) 578-3940 to Speak to Our Estate Planning Attorney
In planning for their end of life, people often consider making trusts
rather than, or in addition to,
wills. Trusts are relationships where property is held by one party for the
benefit of another. The person who makes the trust, the settlor, transfers
property to the trustee upon their death. The trustee holds that property
for the trust’s beneficiaries.
Who Can I Name as a Trustee?
Trustees can be individuals, companies, or public bodies, and there can
also be single and multiple trustees. Many people name loved ones as trustees,
but some have also named a favorite charity or organization as the recipient
of their assets.
Types of Trusts
People also have a choice on the kind of trust that they make. The most
- Revocable / irrevocable trusts
- Credit shelter trusts
- Irrevocable life insurance trusts
A revocable trust allows the creator to maintain control of all trust assets,
and he or she can amend or revoke the trust at any time. An irrevocable
trust, however, cannot be changed once it’s created. Credit shelter
trusts are used to transfer assets in order to avoid estate taxes. A provision
in a person’s will can leave assets up to the estate tax exemption
to the trust. Irrevocable life insurance trusts are created to remove
the value of your life insurance policy from your taxable estate. The
assets in this kind of document can be transferred to beneficiaries immediately
in order to pay for any estate expenses. However, once you make the trust
and transfer your life insurance policy into it, you can’t borrow
against the policy or change your named beneficiary.
Benefits of Trusts
One of the biggest advantages of living trusts is that they bypass probate.
Probate is the court proceeding through which a will is verified as a
legitimate legal document and the assets of the deceased are distributed.
Not only is probate expensive, but it can also take months. A living trust,
however, doesn’t need to go through probate, meaning your assets
can be distributed to your loved ones much faster. Trusts can also save
you money by helping you avoid taxes or drains on the estate itself. During
probate, the costs of the process come out of the estate, which means
the estate shrinks in value the longer probate continues. Trusts also
provide privacy, because wills are public documents, while trust asset
distributions are done in private.
Talk to Us Today
It’s never too late to begin planning for your future. Talk to our
excellent Denver estate planning attorney to start discussing the kind of trust you want.
Contact us at (308)578-3940 or fill out our online form to schedule your consultation today.