Trust Planning Denver CO
Advanced Estate Planning with Irrevocable & Revocable Living Trusts
Today there is a growing demand for families, individuals, and business owners to establish different types of trusts. The primary reasons for this are to establish greater control of their affairs and minimizing state and federal involvement. In the past, a living trust was most often used for estate tax planning and probate avoidance, but today my clients are using various types of trust for many different reasons.
My Denver CO estate planning law firm drafts many different types of trusts depending on the needs of the client and complexity of the estate. Perfect examples of when a trust is needed are when a young couple has small children and desires to create a life insurance trust along with a revocable trust to be sure that there will be a large amount of money available to their child for necessities should they pass. Another reason to use living trusts is when a business owner wants to make sure the assets of the company are kept separate from the personal estate, should they pass too soon.
Trusts are a potentially complex arena with numerous possibilities for how to structure a good plan but also with numerous potential pitfalls that could result in not having the outcomes you want. It is important for you and your loved ones to make sure that your estate planning achieves what you want it to achieve.
The two types of trusts I prepare are revocable and irrevocable trusts. Each has its value and place and can be used in conjunction with the other.
Revocable Living Trusts
The living trust is just what it sounds like – a trust that is in effect while you’re alive and acts at your disability and death. Unlike a last will and testament, a trust does not generally face probate or public scrutiny. Your affairs are kept private and the only people involved are those that you name to act as your successors in the event that you can no longer act. It becomes irrevocable upon the death of the grantor (the person who created the trust), if there is only one grantor. When the last spouse becomes disabled or deceased, your successor trustees/power of attorney will step in to handle the affairs and ultimate distribution of the estate. There are many benefits to establishing a living trust and I discuss this option with every client I feel needs to have further protection afforded by this legal planning tool.
When appropriate, I also discuss the use of irrevocable trusts as a way to protect and manage distribution of the money and property in an estate:
- Keeps third party outsiders, creditors and unscrupulous individuals from invading the estate
- Helps children with special needs requiring government benefits
- Provides estate tax planning solutions for estates in excess of $5 million
- Ensures charitable giving using real estate and other financial vehicles
- Helps protect assets for the heir who may face divorce, tax issues, or creditor problems
These are but a few of the many reasons my clients consider the preparation of irrevocable trusts, because once created, the grantor of the trust cannot change the terms or outcome of the trust. The grantor is the person who creates the irrevocable trust and they have no control of the trust except in limited circumstances.
Estate planning may include the following legal documents for each client:
- A Living Trust
- Pour Over Wills
- Powers of Attorney, both Financial and Health Care
- Advanced Directives
- HIPAA Releases
As you can probably determine, there are numerous advantages to using either type of trust. Not every client may need a living trust, but you can rest assured that I carefully consider each client and their estate planning goals to help you determine the right estate planning choices for you and your loved ones.
Call our Denver CO trust planning attorney today at 303-562-5973 and find out what estate planning tools can benefit you, your family, and your business.