Denver Trusts & Living Trusts Attorney
Why do we advise Revocable Trust Estate plans?
Due to the ever increasing cost and delay of proving a standard will (or an intestate estate defined by nolo.com) through the probate courts, any client that owns real property, such as a house or land, should seriously consider a Trust. If your estate will contain real property, a Will would be required to go through the probate process to transfer title to your beneficiaries. A typical retainer fee for a Probate attorney in the Denver area is about $5,000 for an uncontested probate. While it may be possible to attempt the probate process on your own, its no easy task. Simply taking a look at the various instruction sets and template forms on the Colorado Court's Probate website can give you an idea of why it could take 8 months to 1 year to complete probate.
Below are detailed descriptions of each of the Trust documents we can provide.
Revocable Living Trusts
This document is the most common form a trust created in Denver and is the main document to our standard estate plans. It acts as a vehicle passing your trust property around probate and directly to your beneficiaries. Perhaps the most novel and important aspect of passing assets this way is that you have the option to gift your beneficiaries your assets in trust. When doing this you are creating small asset protection trusts for your children. These trusts have provisions to protect against any future divorce, any creditor claims or judgment creditors.
These Trusts allow for asset protection, shielding your Trust assets from creditors, lawsuits and divorce settlements. The key to these types of Trusts is timing and control. You must have settled the trust prior to any creditor filing lawsuit or marriage forming. You must also relinquish all control over the trust assets and only receive income distributions.
Special Needs Trusts
These types of trusts allow you or your relatives to fund an account that can not be counted against the disabled person's qualification for SSI, SSDI or Medicaid. They can be first or third party trusts with the most common being third party trusts. Third party revocable or irrevocable trusts will protect the assets from the medicaid claw-back statute after the disabled person passes away.
Irrevocable Life Insurance Trusts or ILITs
ILITs are great for preserving wealth for successive generations. They are also great at reducing your overall taxable estate and are a very popular estate planning tool. The federal estate tax is a hefty tax laid on persons dying with a certain amount of assets left to be inherited. With an ILIT you can move a portion of you assets out of your estate, while preserving it for the next generation, or several generations. Not to mention that an inheritance structure in an Irrevocable Life Insurance Trust provides a tax free inheritance as the death benefit from a life insurance policy is not taxable.
Loan Trust Opinion Letter
A Trust opinion letter is a letter from an attorney to a bank, lender, or refinancing agent that certifies that your Trust is valid and can own or does own real property.