12 Oct 2016

Is a Living Trust Right for You

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Living Trusts aren’t right for everyone, but they are right for many.  A trust may be the right vehicle for you under the following circumstances:

You are concerned about the management of your assets if you become disabled or under an incapacity?   Living Trusts are great for managing assets in the event of disability if all assets are titled in the trust name (except retirement accounts) because the trustee can step in immediately and start to manage assets.  The alternative is to do a basic financial power of attorney but some  institutions may not recognize a power of attorney that is more than 5 or several years old.

Or you want to protect your assets against mismanagement by beneficiaries or from creditors (including ex-spouses) of beneficiaries.

You own real property in more than one state, or have financial accounts with institutions in a different state.   In this case, your estate would have to open a probate file in each state where you have property.  But if you have a living trust, and title your property in your trust, there will be no probate action.

You want to provide for minor children or protect minor children, by appointing a financial trustee or guardian.  If using a will method, you may for example appoint a guardian but the guardianship does not come into being until after you have died.  With a Living Trust, you may designate who is the guardian of your children while you are disabled.

You are in a second marriage and your and/or your spouse have children from a prior marriage.

You want to avoid probate and maintain as much privacy as possible.   A properly funded trust avoids probate altogether, and no trust assets are ever listed in a Court file.


My commentary and solutions discussed in this article and constitute legal information, not legal advice.   Possible solutions discussed may or may not apply to your situation, may vary from state to state, and   not be available in the state where you reside.   If you are a Colorado resident, please feel free to call me for a free consultation at 303-457-9500.  Alternatively, be sure to discuss these issues with a competent estate planning attorney before taking any action.

Please feel free to contact me to set up a free consultation at 303-457-9500.


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