5 Cases When a Trust is Better Than a Will in Colorado
A will is one of the most basic Colorado estate planning documents, and everyone should have one to make sure that there is no question about what would happen to your assets and kids if something happens to you. But there are some cases when having a trust in addition to a will may be the better option. Here are six of them:
Privacy. When a will undergoes probate in Colorado, it becomes public record. A trust is private. If you don’t want just any one to be able to learn about what your assets are and how you have chosen to distribute them, a trust is a great option. The probate process also takes months to a couple years to complete with associated costs depending on the complexity of the situation, while a trust will bypass this process.
Providing for a person with special needs. If you have a child or another dependent with special needs, a trust commonly known as a Special Needs Trust can protect assets for a special needs person without jeopardizing their qualification for government benefits. A will allows you to transfer assets to a special needs person, but will not protect those assets and could potentially put a special needs person’s government benefits in jeopardy.
Blended families. If you are part of a blended family, a trust can give you the flexibility you want to make sure that children from prior marriages are provided for in the way you want.
Out-of-state property. If you own property in another state besides Colorado, you can more easily transfer ownership via a trust than a will. Transferring out-of-state property in a will usually means additional legal expenses because you could have ancillary probate in multiple states.
Asset protection. If you want to protect the assets you leave your loved ones from creditors (including bankruptcy and divorce) a trust is the way to go.
If you would like to learn more about the use of trusts in Colorado to pass on what you care about to the people you love, call our office today to schedule a time for us to sit down and talk. We normally charge $500 for an Initial Estate Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to complete a planning session at half off. Call 720-248-7621 today and mention this article.
