On November 25, 2015

A Denver estate attorney discusses the benefits of trusts.

A Denver estate attorney discusses the benefits of trusts.

Trusts are estate planning tools that allow one party to transfer certain assets to another party via the oversight of a third party. Although trusts may not be right for every estate plan, they can have a number of benefits, including:

  1. Maintaining control of wealth – Using certain assets to fund a revocable trust can mean that these assets are still accessible to you at any point in the future if you become incapacitated. Upon your death, it also means that these assets will be distributed according to the specific terms you devised. This can be particularly important for blended families or in cases when estates may have significant liabilities.
  2. Preserving certain assets – If you have a lot of debt or you have certain beneficiaries who may have spending/gambling/addiction issues, using your assets to fund a trust can protect these assets and prevent them from  being seized by creditors or from being immediately spent by those who may be less than responsible with money.
  3. Avoiding probate – Probate can prevent your beneficiaries from having access to certain assets for six months or longer. Additionally, probate can be expensive, and it is part of public record. So, if you want to pass certain assets over to particular beneficiaries as soon as possible upon your death and you would like to do so with some privacy, setting up a trust may be one of your best options.
  4. Minimizing tax liabilities – The assets used to fund trusts are generally not included in the value of an estate. This can help people minimize their loved one’s future estate tax obligations, allowing their beneficiaries to keep more of these assets (rather than handing them over to the government to satisfy tax liabilities).

Funding Trusts: Assets Commonly Used to Fund Trusts

Trusts can be funded by various types of assets, including (but by no means limited to):

  • Cash and other personal property
  • Stocks and bonds
  • Real estate
  • Retirement and investment accounts
  • Motor vehicles
  • Life insurance.

Contact a Denver Estate Attorney at JR Phillips & Associates, PC

To find out if developing a trust may be beneficial to you and your estate plan, contact a Denver estate attorney at JR Phillips & Associates, PC. We provide a thoughtful, comprehensive approach to our clients’ estate planning, elder law and other legal needs, and we take pride in helping each of our clients and their families find the best solutions for them.

Let’s discuss your options during an initial consultation. To schedule this meeting, call us at (303) 741-2400 or email us using the contact form at the top of this page.

From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village and Englewood.

Categories: Estate Planning, Trust Administration