A revocable living trust also offers more privacy than a will. The terms of a trust remain private. The trustee is responsible for administering the trust, which includes paying debts and distributing assets, all without the need for court interference. A
will, on the other hand, becomes public record upon your death. This is a useful feature for families in Denver who wish to keep the details of their asset distribution and estate confidential.
Disadvantages of a Revocable Living Trust
While there are plenty of advantages to a revocable living trust, there are some disadvantages to consider as well. For instance, the cost of creating and funding a revocable trust can outweigh the cost of a will, especially if you require the assistance of an attorney when drafting the trust.
Aside from just the expensive upfront costs of creating the trust, a revocable living trust demands ongoing attention. Not only will you need to make sure that all of your assets are properly transferred into the trust initially, but you will need to continually add new assets as they are acquired. Any assets that are not properly transferred into the trust may be subject to going through probate.
With an irrevocable trust, your assets are removed from your taxable estate once they are transferred. This is not the case with a revocable living trust. With a revocable trust, beneficiaries will not benefit from any reduced estate taxes upon your death. Additionally, creditors will still be able to reach the assets within the trust.
Speaking with a qualified revocable living trust attorney is a great way to decide what kind of trust is right for you. A revocable living trust offers some tremendous advantages, though choosing the right kind of trust depends on your needs and long-term goals. For assistance deciding if a revocable living trust is right for you and your family, we strongly urge you to contact us to schedule a consultation. Our Denver revocable trust attorneys are here to help you every step of the way.
Difference Between a Revocable and Irrevocable Trust
We mentioned above how a revocable trust does not offer the same asset protection that an irrevocable trust does. However, familiarizing yourself with some of the key differences between the two will go a long way in helping decide which kind of trust is best for you. The main difference between a revocable and an irrevocable trust is the flexibility that each one offers.
We know that a revocable living trust is able to be modified or revoked at any given time. Although, an irrevocable trust does not offer that same flexibility. With a revocable trust, you are able to add and remove beneficiaries, manage the distribution of assets, or even choose to dissolve the trust entirely if you so desire. You are able to maintain full control of your assets with a revocable trust and continue to manage them however you choose.
Irrevocable trusts are not able to be modified or revoked once they have been created. With an irrevocable trust, you relinquish full control of your assets, and they are no longer considered a part of your taxable estate. One of the primary benefits of an irrevocable is the reduced estate taxes that it offers.
The decision between a revocable and irrevocable living trust ultimately depends on your long term
estate planning goals. For those who wish to maintain more control over their assets, a revocable living trust is the more practical option. However, for those who are more intrigued by tax benefits and asset protection, an irrevocable trust is a more reasonable choice. Whatever your individual goals and wishes may be, our Denver team of living trust attorneys will help you decide what option is best for you. We are here to provide exceptional legal guidance throughout the entire process and ensure that you can plan for your future the way you want.
Why Avoid Probate?
Avoiding probate is one of the most enticing benefits that a revocable living trust has to offer. But why would you want to avoid probate? Probate is a costly and arduous process that can take years to complete.
Probate is a court-supervised process that oversees the distribution of a deceased person’s assets when a will does not exist. It is a time consuming process that can take anywhere from several months to multiple years to finish. Additionally, several fees are usually incurred during the probate process, including court costs, attorney fees, executor fees, and more. Not only does the cost start to quickly add up, but it also diminishes the share for all of the beneficiaries.
Placing your assets in a revocable living trust is a great way to avoid this process altogether. Without probate, assets are distributed directly to your beneficiaries upon your death without the need for court interference, thus reducing legal costs and speeding up the distribution process. As we mentioned before, bypassing the probate process also offers additional privacy. When having to go through court, all information about the deceased’s assets becomes public record. A revocable living trust keeps the details of your Denver estate private.
How to Create a Revocable Living Trust
When creating a trust, it is important to make sure that you are in compliance with Colorado state laws and that all information is clear and accurate. Working with an experienced living trust attorney in Denver is a great way to ensure that no mistakes are made and the trust is properly established.
The first step in creating a revocable living trust is drafting the trust document. This document outlines the terms of the trust, the assets within, and the beneficiaries who will be receiving those assets. This document also identifies the trustee, who will be responsible for managing the trust and distributing assets upon your death. A clearly defined trust is essential for avoiding any potential legal troubles or disputes down the road.
Next, you will appoint a reliable successor trustee who will be responsible for managing the trust and carrying out your best wishes. The trustee can be a loved one or family member, or you can go through a trust institution.
After a trust document has been drafted and a trustee is assigned, the trust needs to be funded. This step involved transferring ownership of your assets into the trust. These assets generally include things like real estate, bank accounts, investment accounts, and more. One of the biggest benefits of a revocable trust is that it allows you to add newly acquired assets, so it is important to transfer any additional assets into the trust in order to avoid probate.
Once the trust has been established, it is important to regularly update and manage it. If any circumstances or estate planning goals change, you are able to modify the trust to better reflect your interests. Some examples may include adding new assets or updating the beneficiaries.
If you are interested in creating a revocable living trust in Denver, reach out to the dedicated team of attorneys at Evans Case. Our revocable living trust attorneys are here to help you with all your trust and estate planning needs. For more information on how we can be of service, schedule a consultation and speak with one of our attorneys today.
What Kind of Assets Should You Include In Your Trust?
There is a wide range of assets that you are able to include in a revocable living trust. Some of the most commonly transferred assets include real estate, bank accounts, investment accounts, businesses, and personal property.
Any real estate property, including your home, vacation properties, or any other piece of real estate, can be transferred into your revocable living trust. Real estate is one of the most common assets to include in a trust. With revocable trust, your property will be able to be distributed to beneficiaries upon your death without the need to go through probate. Checking and savings accounts are also commonly transferred into a revocable trust. Some banks have specific requirements or regulations regarding transferring certain accounts into a trust. Retirement accounts are typically not able to be transferred into a trust.
Similar to bank accounts, investment accounts can also be transferred into your trust. Stocks, bonds, mutual funds, and other investments are able to be transferred. Transferring your investment accounts into your trust is a great way to ensure that your portfolio is properly managed in accordance with the trust and can be easily and smoothly distributed among your beneficiaries.
Personal property like jewelry, artwork, or family heirlooms can all be included in the trust. Doing this assures that your property will be distributed according to the terms of your trust. If you own a business, you may be able to transfer ownership into the trust so that it can continue to be managed according to your wishes upon your death.
For assistance deciding what assets are best to transfer into your revocable living trust, consult with the attorneys at Evans Case. Our Denver team of revocable trust attorneys will help guide you through the process and manage the assets in your trust. If you are beginning the process of creating a trust or have questions about what assets make the most sense to transfer, give us a call and see how we can help make a difference.
How Can Evans Case Help With Your Revocable Living Trust?
Whether you are interested in creating a revocable living trust or you need to modify or revoke an existing one, our team attorneys are here to help. From estate planning to trust administration to elder law and more, the trusted team of attorneys at Evans Case have been proudly serving Denver for decades and are committed to providing exceptional legal support. We are here to make sure that you can properly plan for your future and manage your assets confidently and carefully.
A revocable living trust is a great way to maintain control over your assets while planning for your future. Our Denver attorneys are here to help you decide what kind of trust is best for you and your loved ones. For more information about how we can help draft, modify, or revoke your trust,
call us today and speak with one of our experienced attorneys.
