Experienced Trust Lawyer in Centennial, CO: Your Trusted Legal Partner
Types of Trust
There are two main types of trust: a revocable trust and an irrevocable trust. Each has numerous variations that serve different purposes. Depending on the circumstances, you may need to combine these trust types to achieve the desired results.
Speaking with an estate lawyer in Centennial, CO, can provide valuable information to help you decide on your estate planning steps.
Getting started with estate planning can be challenging, but Duncan Legal can guide and smooth the process.
Revocable or Irrevocable Trust
An irrevocable trust cannot be altered. However, the trustor can change or terminate the revocable trust during their lifetime. You can change different aspects of your trust agreement whenever you wish.
Living or Testamentary Trust
A living trust, also known as a living will, is created during the settlor’s lifetime to determine their estate management. Living wills can be revocable or irrevocable.
But testamentary trusts specify how the settlor’s assets will be designated after death. They are also known as will trusts. These trusts are irrevocable and usually consist of assets from the trustor’s possession.
Funded or Unfunded Trust
You can also decide whether to fund or not fund your trust. An unfunded trust agreement might expose you to issues that a funded trust will generally allow you to avoid.
You might need diligent trust representation to ensure your assets are distributed according to your wishes. You can start talking to a local Centennial trust attorney about the type of trust that will fit your estate and finances best.
When Should You Set Up a Trust?
You might think your estate is too small and wonder if a trust is essential to your estate plans. Although not everyone may need a trust agreement in their lifetime, there are situations in which you should consider them.
Knowledgeable CO lawyers from a professional law firm with experience handling trust cases might recommend them for the following:
You have a child with special needs
Your net worth is close to the estate tax exemption
You need more flexibility than a will in managing your assets at your demise
You don’t want your financial assets to become public information
You want your beneficiaries to avoid probate
Having a living trust can help you protect your family in these situations. You can choose at what age your child will get your assets and any other legal issue about your trust. Licensed Colorado lawyers in related practice areas can help you plan your estate.
The Benefits of Creating Trusts
Many people create a will specifying what they want to happen to their possessions after their passing, but not many know of the numerous benefits of having a trust. Whether you have a will or not, there are several benefits.
Avoid the Probate Process
With a will, your assets must go through probate for verification before the distribution according to your wishes. Your assets will become public records, which can take a long time. However, establishing trust can help you avoid the process entirely.
Trust agreements are private, and only the trust’s attorney and trustee can distribute the assets as stated in the trust. With a trust, your beneficiaries do not have to go through a long, expensive process before getting the assets you leave to them. You can even state that all assets not in a pre-existing trust be transferred to one when you pass on.
Enjoy Tax Benefits
When a settlor places property into a trust, it separates its legal ownership and control from its equitable ownership and benefits. This separation can lead to certain tax benefits depending on the kind of trust agreement.
For instance, with an irrevocable trust agreement, you can be sheltered from all estate tax for that property. Note that you might have to meet gift tax requirements for contributions to the trust.
You can also make an annual exclusion gift contribution to the trust without having to pay an additional gift tax. A Centennial trust lawyer can help you decide which trust type is right for your family.
Plan Your Estate
Trusts may be created for estate planning purposes or Medicaid planning purposes. It can come in handy when you have a personal injury or illness. Testamentary trusts are frequently created in wills defining how money and property will be handled for the benefit of minor children upon the creator’s death. Also, you can decide how much your beneficiaries receive each year.
Whatever your family needs, you can remain in control of what is done with your assets during your lifetime and even after you pass on without having to enforce it yourself.
Before crafting your trust agreement, your attorney can walk you through the possibilities. Proper trust administration will ensure that your estate is maximized to the fullest.
Choose Your Trustee
With a trust, you can choose the person in charge of fiduciary duties when you pass on or retire. The trustee must act according to the trustor’s wishes for the beneficiaries’ good.
The trustee may be an individual, a business, or a public body, and there may be a single trustee or multiple co-trustees. You can also decide if the trustee will fully control your assets or manage and invest them.
Whomever you choose must remain committed to their tasks according to the trust agreement; this is why selecting an individual you can trust with that responsibility is essential.
How Can a Centennial, CO, Trust Lawyer Help?
There are several ways that a trust lawyer can help with trust administration. With their understanding of trust and elder law, they help clients draft trust agreements that guard their assets against suits and estate taxes. They will prepare the trust agreement and will for your estate according to your specifications. So, prepare to answer several questions that will allow your estate planning attorney to understand what you and your family need.
Choosing a trustee for your Colorado estate planning is a huge responsibility. Your trust attorney may have some recommendations for you. In some cases, your trust lawyer can also be your trustee.
Your trusts attorney will be able to explain all the requirements for your trust. During your consultation, you can discuss your legal issues regarding trusts and other related practice areas.
The Benefits of Working with an Experienced Trusts Lawyer
Working with an experienced trust lawyer comes with many benefits that go beyond the drafting of legal documents. With their specialized knowledge and expertise, these professionals can provide comprehensive legal services to ensure every detail of your estate plan is in your best interest.
Here are a few key advantages of working with an experienced Centennial trust lawyer:
- Tailored Estate Plan: An experienced trust lawyer can tailor a comprehensive estate plan to suit your situation and preferences, ensuring your family members are well cared for in your absence.
- Legal Expertise: With a deep understanding of trust laws, they can provide expert advice on the best trust structure for your estate, helping you avoid potential legal pitfalls in the future.
- Tax Planning: Trust lawyers can help you leverage the potential tax benefits associated with trusts, reducing the financial burden on your beneficiaries.
- Asset Protection: By setting up the right trust, your lawyer can help protect your assets from creditors and legal judgments.
- Conflict Resolution: Should disputes arise among family members regarding the trust, your lawyer can provide legal counsel and mediate conflicts, preserving family harmony.
- Ongoing Support: An experienced trust lawyer can provide ongoing legal support, assisting with trust management and adjustments as your financial circumstances or state laws change.
If you need help setting up a trust, looking for an experienced trust lawyer in Centennial, CO, is your best bet. A seasoned professional can help you draft an airtight trust agreement and make sure all the requirements for administering the trust are met. With their support, you can rest assured knowing your assets will be well protected and distributed according to your wishes.
Choose a Reliable Attorney
Let Duncan Legal help you determine which type of trust is right for your goals and needs and guide you through the creation and execution of your trusts. We are experienced in trust and estate litigation, real estate transactions, probate matters, and more.
Our estate planning lawyers understand the complexities of trust work and can help you create one that will fit your needs for years. Our attorneys have extensive experience in multiple practice areas related to trusts.
We strive to offer personalized attention by providing diligent trusts representation, quality advice, and excellent customer service. Duncan Legal can be your trusted legal partner in Centennial, CO. Contact our law office today to see how we can help you create a trust that will protect your assets.