Trusts

Denver Trusts Lawyer

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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 common are:

  • 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.

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