The majority of Colorado residents make plans for their future. This often begins when they are younger and they plan for marriage and a family. Later, plans turn toward vacations and retirement. As these individuals age, the need for estate planning becomes apparent.
Many individuals are discovering that trusts offer a number of benefits in the estate planning process. One of the most common type of trust is the revocable trust. This type of trust is created during the individual’s lifetime. Assets are transferred to the trust, and the individual acts as the trustee. The benefit to this type of trust is that it does remove the assets from the probate process while still allowing the individual to remove assets and/or make changes to the trust as he or she sees fit.
Another common type of trust is the irrevocable trust. Once assets are placed in this type of trust, they cannot be removed from it. Additionally, once the irrevocable trust is created, it cannot be changed. Again, this type of trust is effective in removing assets from the probate process; however, it does limit the individual’s options once it is created.
Estate planning is essential in protecting assets and providing instruction upon one’s death. With proper estate planning, the Colorado resident can make the transfer of assets an easier process for all involved. Additionally, potential family discord surrounding who is entitled to what can be avoided. An experienced estate planning attorney can assist in creating an estate plan that meets the individual’s particular needs and situation.
Source: estate.findlaw.com, “Types of Trusts“, Accessed on Dec. 9, 2017