Comprehensive estate plans in Colorado might include a will, powers of attorney, medical directive documents or other planning instruments. In many cases, having a revocable trust can lend benefits both to the person who makes it, called the grantor, and to his or her heirs. When the grantor of a trust dies, the trust can be written to live on indefinitely, carrying out the instructions of the grantor. Where the grantor is also the trustee, the trust should be written to provide a new trustee on the grantor’s death.
The assets held in a revocable trust pass outside of probate on the death of the grantor. This is an advantage that can save significant time and money for heirs. It also allows the transfer of trust assets to remain private as property that is probated is made part of the public record. Many families who don’t want the transfers made public use revocable trusts.
A trust can be designed to work with other estate planning documents, like wills, life insurance plans or retirement plans, so assets automatically flow into the trust on the death of the grantor. The possibilities when it comes to distribution are nearly unlimited with revocable trusts. They can be split into separate trusts for beneficiaries and divided unequally or equally depending on the wishes of the grantor. If the grantor wants to make charitable gifts on death, a trust can be an efficient way to accomplish that as well.
People in Colorado who have questions about establishing estate plans might want to speak with a lawyer. A lawyer who has experience in estate planning law might examine the person’s circumstances and help design a plan that meets his or her goals and needs. A lawyer might suggest powers of attorney or trusts and then draft and file planning documents to create the estate plan.