Denver Attorney for Setting Up a Trust

The laws pertaining to trusts can be very complicated. If you do not have a lawyer by your side when setting up a trust, then you may not be aware of all the options available to you. Further, you may not fully understand how to structure the trust to best meet your goals.

Our attorneys can assess the specifics of your situation and make sure you select the right type of trust. Further, we can offer crucial assistance when drafting trust documents. We will ensure that your trust is properly established and valid.

Get support and guidance from our Denver attorneys for setting up a trust by calling YouLaw Colorado today at (720) 815-4421.

How Do Trusts Work?

A trust, like a limited liability company or corporation, is a legal entity created by an agreement. However, unlike the aforementioned entities, a trust does not need approval or registration with the government. Since registration is not required, you can create an anonymous trust that protects your privacy. This privacy is crucial to many people.

There are multiple different types of trusts that may be established. A familiar example using a common type of trust would involve you placing money into a trust rather than giving it directly to family members. In this case, you would appoint a trustee to manage the trust. Only the trustee would have access to the funds and they would distribute them according to the guidelines you set up when your trust was created. Depending on the type of trust at issue, you might be able to withdraw the money, revoke the trust, or change the trust’s terms.

Essentially, every trust involves three roles. First, there is the grantor, who sets up the trust and establishes the rules. Then there is the trustee, who manages the trust and follows the rules set forth by the grantor. Finally, there is the beneficiary, the one who benefits from the trust. Since the beneficiary does not own or manage the trust assets, they are protected from creditors, lawsuits, and divorce settlements. If a beneficiary to a trust owes money, then their creditors may not make any claims against trust assets until they have been distributed by the trustee.

Our Denver attorneys for setting up a trust can help you further understand why establishing such an entity may be beneficial. Further, we can help determine which type of trust is right for you.

Main Types of Trusts You Can Establish in Denver, CO

When researching types of trusts, you may come across many different names. Many of these suggested names reflect the purposes for which people establish the trust rather than the type of trust they are. In general, there are only three main types of trusts that you can establish in Denver, CO:

Irrevocable Living Trusts

An irrevocable living trust may be viewed as one of the riskier types of trusts. This is because once you create such a trust, you cannot transfer the assets back to yourself if you change your mind. As a grantor, this trust would completely sever ownership between you and the trust assets. In turn, you may protect certain assets from creditors, lawsuits, and taxes.

Revocable Living Trusts

Revocable living trusts are very popular. You may create such a trust in your lifetime and maintain control over. Moreover, you have the option to terminate a revocable trust if it no longer meets your needs.

Testamentary Trusts

Finally, if you do not wish to create a trust before your death, then you may create a testamentary trust. This will involve creating a will that transfers your personal assets into a trust after your death. By establishing a testamentary trust, you may allow yourself to keep full control over your assets without any complications.

Setting Up a Living Trust in Denver, CO

A “living” trust is simply a trust that is established during your lifetime, as opposed to being established through a will. The process for setting up such a trust may vary depending on the circumstances of your case. Still, you will likely go through the following steps:

Identifying Assets

The first step will involve identifying the assets you want to place in your trust. For example, such assets may include your home, car, bank accounts, and other valuable items. You should make a list of these assets to ensure that everything you want to include is accounted for.

Selecting a Trustee

Next, you will have to select a trustee. You may decide to serve as the trustee yourself or appoint someone else. Whoever you select will be responsible for handling the trust assets according to your desired terms.

Identifying Beneficiaries

You must also decide who the beneficiaries of the trust will be. As previously discussed, these individuals are those who will benefit from the trust. Our legal team can help you ensure that each beneficiary is clearly identified. That way, you may avoid potential confusion later on.

Drafting the Trust Document

After identifying assets, beneficiaries, and a trustee, you may draft your trust document. This document will outline the terms of your trust. Beyond identifying the trust assets and necessary parties, it should also include any specific instructions on how the assets should be managed and distributed.

Reviewing and Updating the Trust

Finally, as the grantor, you should periodically review and update your living trust. Changes in life circumstances, such as marriages, births, or acquiring significant assets, may necessitate modifications to your trust document. Our experienced attorneys can help your review and manage your trust to ensure it continues to align with your intentions.

Change the title of any property with a title document, such as your house or car, to reflect that you now own the property as trustee of the trust. This step is necessary to officially transfer the ownership to the trust.

Call Our Law Firm Today for Help Setting Up a Trust in Denver, CO

Get assistance from our Denver attorneys for setting up a trust by calling YouLaw Colorado at (720) 815-4421.