People over the age of 60 are becoming the fastest growing age group in Colorado and around the rest of the country. As this age group gets older, estate planning becomes an important consideration. There are many facets to estate planning and it is not a one-size-fits-all proposition. If an older couple has a complicated estate that includes blended families, minor children and significant assets, trusts may be a good option.
One flexible trust option is known as a living trust, or revocable trust. It allows the testator to maintain control of the assets once they are placed in the trust. In addition, assets can be added or removed from the trust during the trust owner’s lifetime. A trustee is also appointed and has power over the trust in the event of a person’s mental or physical incapacity.
One of the main advantages to a living trust is the control it grants to a trustee in the event that the deceased leaves behind young children or children with special needs. A person can detail how and under what circumstances the assets of the trust are to be distributed after the testator dies. Disbursement can be delayed until a child reaches a certain age beyond the age of 18; frequently this is 25 or 30.
Families come in all shapes and sizes in Colorado, and it’s not unheard of for parents to have children later in life or to be raising grandchildren. In many cases, those children are not yet old enough or otherwise prepared to manage money after a parent or guardian passes away. An experienced estate planning professional can review one’s financial and family situation and help one arrive at a plan to meet one’s final wishes.