Trusts in Colorado
Trust funds aren’t just for the wealthy. It can be a wonderful tool for transferring assets to family members or charities, providing for family members with special needs or who are financially irresponsible, and for providing for the educational expenses of progeny. A trust is also useful in avoiding high estate taxes and probate fees, avoiding probate, which may result in delayed transfers of assets to heirs, and for preventing the mishandling of assets.
A trust is a legal contract where the “trustee(s)” has control over assets, money, stocks and/or property. The creator of this trust is typically called a “settlor,” “donor,” or “grantor” and creates the trust for a “beneficiary(ies).” Our trust fund lawyers will explain the various types of trusts and will help you determine the best method to execute your financial goals and intentions.
You may want to contact our firm to create a trust if:
- You are concerned about your ongoing ability to manage your own assets
- You want to avoid probate
- Someone, often a child or disabled family member, is incapable of managing wealth and assets
- You want to transfer assets quickly after death
- You want to lower estate taxes
- A disabled family member has been awarded monies or property, and you want to avoid the loss of government benefits
- You want to provide for your progeny’s future educational needs
- A Trust that is to provide for the cost of care for a surviving pet
- A type of trust that limits the beneficiary’s access to the trust principal. This restriction protects trust property from:
- a beneficiary who might squander trust property
- the beneficiary’s creditors.
- A charitable trust allows a person to make donations to a charity while also receiving generous tax breaks.
- Charitable trusts require that that you give up legal control of your property, and charitable trusts are generally irrevocable — once the trust becomes operational you cannot change your mind and regain legal control of the trust property.
Special Needs Trusts
- A special needs trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property which is intended to be held for their benefit. This type of trust may also be used to permit the beneficiary from being disqualified from receiving governmental assistance.