When estate planning, setting up trusts not only are a great way to take care of loved ones after you pass, but can also protect you during your lifetime. If any health issues, disabilities, or incapacitations occur for the trust creator, the trust can provide protection. They also don't need to go through the probate process, like your will and other estate planning documents, which can make things easier on your family in the long run. The property and assets included in the trust are kept private as well, whereas all these things become public record through a probate case. Let's look at two different types of trusts and how they could work for your estate planning needs.
Revocable Trusts in Wheat Ridge, Colorado
Revocable trusts in Arvada and Wheat Ridge are trusts that can be modified any time. The person who creates the trust can draft an amendment to change any of the terms previously set. This could include changing an asset that you have included in the trust, or adding or removing a beneficiary. The trust can even be revoked in full if that what the creator wants. Any assets listed in the trust belong to the creator, meaning they will be subject to taxes and creditors. The assets are also not protected if you are named in a law suit. The benefit to this type of trust is that you can make changes. It is not set in stone. It also is a great way to set yourself up for protection if you become incapacitated. A trustee can manage the trust to make sure you and your property are cared for.
Attorney for Irrevocable Trusts in Wheat Ridge
Irrevocable trusts are trusts that cannot be changed once they have been signed, formed, and funded. You are unable to take back any property or assets that you included in an irrevocable trust. Basically, you form the trust and then set it aside until after you are gone and it comes into play. Just as a side note, a revocable trust becomes an irrevocable trust after the creator has passed away. You can designate certain assets from your revocable trust to break into separate irrevocable trusts after your death. For example, upon your death, your revocable trust can be divided into three irrevocable trusts - one for each of your children.