What are the benefits of a Colorado resident having a Revocable Living Trust?
A Revocable Living Trust can provide several benefits for a Colorado resident as an estate planning tool, some of the top benefits include:
- Avoiding Probate: One of the main benefits of a Revocable Living Trust is that it can help to avoid probate, which can be a time-consuming and costly process. Since assets held in a Revocable Living Trust pass directly to the trust beneficiaries upon the grantor's death, rather than through probate, it can be an efficient way to ensure that your assets are distributed according to your wishes in a timely and private manner.
- Privacy: A Revocable Living Trust can help to maintain privacy, because the details of the trust and its assets are not publicly disclosed, unlike a will which goes through probate and becomes part of the public records.
- Asset Management: A Revocable Living Trust allows the grantor to manage their assets even after they pass away or become incapacitated, by appointing a successor trustee who will take over management of the trust in accordance with the grantor's instructions.
- Flexibility: A Revocable Living Trust can be amended or revoked by the grantor at any time during their lifetime as long as they have the capacity to do so. This means that if their circumstances change, the grantor can adjust the trust to accommodate those changes.
- Protection of Beneficiaries: A Revocable Living Trust can also provide protection for beneficiaries. For example, if a beneficiary is too young to responsibly manage their inheritance, the trust can provide for distributions to be made to them at specific ages or under certain conditions, or it can provide for a professional trustee to manage the assets on their behalf until they are ready to take control of them.
- Privacy: Probate is a public process, which means that the details of your estate become a matter of public record. A Revocable Living Trust allows you to keep your estate affairs private.
- Asset Protection: A Revocable Living Trust can help protect your assets from creditors, lawsuits and other claims. The assets placed in a trust are typically out of reach of creditors of the grantor and any beneficiaries, providing a layer of protection for your assets.
As mentioned, although a Revocable Living Trust can avoid probate, it does not avoid estate taxes, it only helps in creating an efficient distribution of assets and protecting assets from creditors.
It is advisable to consult with a local attorney to have a better understanding on how a Revocable Living Trust could help with your specific situation, if you are a Colorado resident we would love to help educate you on all of these benefits.
Feel free to contact our office at 303-647-5105 to schedule a confidential call with attorney Nicole J. McGann.