Many people will tell you that one of the main benefits of creating a living trust, rather than a will, is because the probate process is completely avoided upon your death. This is only true if your living trust is fully funded with all of your assets prior to your death. If this is the case, it could result in a quicker distribution of your assets to your beneficiaries, as outlined in your trust.
In reality, there are other advantages of creating a trust in Colorado – and you don’t have to have a large estate to make it worthwhile. Here are some facts to consider when estate planning:
- Unlike a will that is made public upon your death, this is a private document. Only your beneficiaries will know the contents of your trust. This may minimize the number of creditors that come knocking for payments.
- Although ownership of your assets is transferred into the trust and managed by a person you designate, you still have full control of those assets.
- You can create a revocable living trust that can allow you to regain control of your living trust in the event you are inaccurately labeled as incapacitated.
Reasons You May Not Want a Living Trust
It is more expensive to create a living trust than a will because the document is more complex. That said, the living trust cannot include any type of personal arrangements such as guardianship of children or funeral arrangements. In addition, if you have a life partner but are not married, your partner will have no legal rights to your estate outlined in the living trust.
If you are considering a living trust, it is extremely important that you appoint a trustee that you trust completely with your estate – especially because there is no probate process to serve as a check-and-balance. This person will be responsible for managing your trust if you become incapacitated as well as distributing your assets after your death. If you do not have this type of relationship with anyone, you can appoint a neutral third-party to serve as your trustee.
Trust litigation in Denver can result if the trust or the trustee is contested by the beneficiaries. The trust can be contested on the grounds that:
- The beneficiaries think the person was not of sound mind
- Outside individuals influenced the writing of the trust
- The trust appears to be invalid for any reason
Because there is no probate, you may need a Denver trust litigation lawyer to file the lawsuit with the probate court and plead your case. To learn more about creating a living trust or helping with trust litigation in Colorado, contact the Denver estate planning lawyers at Brown & Crona, LLC: (303) 339-3750. You can also send us a message online set up an appointment.