Denver Trust Planning Attorney
Trusts can play a very important role in your estate plan. From avoiding probate to removing assets from your estate to avoid taxes, their usefulness is extensive. At Colorado Estate Planning Law Center, we fully comprehend all of the benefits there are in having a trust, and we know how to best incorporate them into your estate plan. We want to make these sometimes complex legal issues as simple and easy as possible. For more information on whether or not a specific type of trust is right for your situation, call our Denver trust planning attorneys at (303) 420-2863 or contact us online to set up a Free Initial Meeting.
Denver Trust Planning Resources
- What Is a Trust?
- Why Do I Need a Denver Trust Planning Lawyer?
- What Types of Trusts Are There?
- Contact Our Trust Planning Lawyers in Denver
What Is a Trust?
In order to know why you would need a lawyer for a trust, it’s essential to understand exactly what a trust is. Simply put, trust is a way for you to decide what will happen to your property after you pass away while still maintaining control over your assets while you are alive. Some types of trusts are more complicated to create than others. More specifically, a trust is a legal entity that holds properties and other assets. When a trust is created, a third party, known as the trustee, holds these assets until the assets are to be passed onto the beneficiary.
If you’re wondering what you put into a trust, there are several answers. Trusts can hold real estate and properties, vehicles, investments, money, and other assets. By creating a trust, you can shield assets in some circumstances, and it allows you to decide how your assets should be handled either upon your passing, or when it is determined that the beneficiaries are entitled to what is in the trust.
Why Do I Need a Trust Planning Lawyer?
Most people don’t know how to create trust on their own. While many people try to learn because they believe it will save them money, it can be a complex process. If you’re able to figure it out on your own, you’ll likely have spent a significant amount of time learning how to do it. Additionally, it’s imperative to make sure that everything is executed correctly so that your wishes are carried out. Many people mistakenly believe that a trust is just a document – it isn’t. You will certainly have to draft documents in order to create the trust, but the actual trust is really just a legal relationship where someone handles your assets in a way that benefits you and fulfills your wishes.
What Types of Trusts Are There?
There are many kinds of trusts that can be used to help create a solid estate plan for you and your family. While an experienced attorney can help you determine the best kind of trust, it’s also smart for you to understand them so you can play an active role in creating the right trust for you. In order to get what you want, you need to know what you’re looking for.
A few of them include:
- Revocable living trusts: A revocable trust is a trust that can be revoked or changed at any time during the lifetime of the individual who set it up, otherwise known as the grantor. Revocable trusts don’t provide asset protection the way that irrevocable trusts do, but they have other benefits. Revocable trusts have many advantages. They can offer you privacy, allow you to easily transfer your ownership of assets to another person, and help you avoid probate when you pass away.
- Charitable trusts: A charitable trust will allow you to leave money to your favorite causes while avoiding taxes. Once you pass away, your heirs will have reduced estate taxes. There are two main types of charitable trusts: a charitable remainder trust and a charitable lead trust.
- Qualified personal residence trusts: A qualified personal residence trust is an irrevocable trust. These trusts can be helpful in transferring your home to loved ones and removing your home from estate tax issues that may arise down the road. A qualified personal residence trust is considered a gift, so it is treated differently from a residence passed to your heirs once you pass away.
- Grantor trusts: A grantor trust, also referred to as an intentionally defective grantor trust, is an irrevocable trust. This trust can help you reduce taxes, protect your assets, and properly transfer property to your loved ones.
What are the Benefits of a Trust?
There are many benefits of creating a trust, but two of the most significant ones include the following:
- Avoid probate. When a trust is created, the heirs/beneficiaries can avoid probate. This means they will receive the assets from the trust sooner and they will not have to pay the cost of having it go through probate. This causes a lot less stress for the beneficiaries.
- Protect Assets. Another significant benefit of a trust is that it can protect certain assets from creditors. If you create an irrevocable trust, you as the grantor no longer own the assets that are placed into the trust. This means it is almost always out of the reach of any creditors.
- Trust agreements are private. When a person passes away and has a will, it becomes part of public record. When a trust is created, this stays private. This means that other people won’t be aware of what assets you have and who they are going to. Many people want this type of information to stay private, so that can be an important benefit.
- Tax benefits. Another significant benefit of creating a trust is the tax benefits it can provide. When you create a trust, it transfers assets out of your estate. In many cases, this means anything in the trust will not be subject to estate taxes upon the grantor’s death.
Other Planning Techniques Outside of Trusts
Our team can also work with you to create family-limited partnerships and family limited liability companies to help pass on your estate in the most effective manner. For more information on what options are best for you, do not hesitate to speak with an experienced Denver estate planning attorney at our law firm.
Why Choose Brady, McFarland, Lord, LLC?
If you’re looking for an estate planning lawyer and for a firm that can help you with trusts, Colorado Estate Planning Law Center is here for you. Our firm has been handling all types of estate planning matters for more than two decades. We treat our clients as more than just clients; we are always invested in making sure you get the outcome that you are hoping for.
With more than 20 years of experience, we have seen a lot. We can point you in the right direction if, for example, you aren’t sure what type of trust to set up or how to manage it. We know what will and won’t be successful and we are always happy to explain that to you in depth.
Additionally, we treat all our clients as individuals. Each case we receive is unique, and we don’t ever try to use a one size fits all model. We take the time to get to know all of our clients and come up with a plan that works for you.
Contact Our Denver Trust Planning Lawyers Today
If you have any questions about what type of trust to set up or you need help setting one up, we are here to help you. We offer an initial interview at no charge so we can learn about your legal needs, and determine how we can help you best.
As the authors of the book “Estate Planning and Taxation in Colorado,” our Arvada estate planning lawyers have the comprehensive knowledge you need to achieve your goals. Our firm has been practicing for more than 21 years. In that time, we have developed a process that allows us to be efficient without sacrificing the personal touch. You can be confident that anytime you ask us for help, we will be there for you. Call our law office at (303) 420-2863 or contact us online to set up a Free Initial Meeting.