DENVER TRUST ATTORNEY

Feasability of trusts for you finances

In the past, only the wealthy relied on trusts. They provided a useful vehicle to fund college expenses and protect inheritances from taxes. Over the past few years, middle-class Americans have also begun to put trusts to use. In fact, CNN asserts that the days of needing to be a millionaire to create a trust are behind us.

Financial experts recommend anyone with at least $100,000 in net worth to consider trusts. Assets, in this case, do not only refer to cash but include all forms, such as stock, real estate property, retirement accounts or boats.

Effect on the will

When creating an estate plan, many people wonder whether a will or trust creates better protections. In some cases, an individual may only decide to use one or the other. However, trusts do not necessarily invalidate the need for a will. For instance, if the individual chooses to create a testamentary trust, then a will becomes necessary.

In addition to this, people who create trusts may rely on wills to distribute items that may only hold sentimental value. Wills also help account for any property that did not make it into the trust before the individual passes away.

Process for  creating a trust

The specific steps for creating a trust depend on the specifics of your situation and the type of trust you choose. These are some general steps your lawyer may take to complete the process.

1. Gather Documents: Your Denver trust attorney will inform you of the documents you need. The documents requested depend on your financial situation and the reason you wish to create a trust. Some of the items you may need to source include tax returns, property titles and bank statements. Your lawyer may also use this information to conduct a full review of your finances.
2. Make Necessary Choices: When creating a trust, there are several specifics that you have control over. For instance, the first thing you often need to decide is whether you want to create a shared or individual trust. Shared trusts may make sense for married couples.
   Secondly, determine who the successor trustee will be. This person manages the trust on your behalf if you are unable to do so and after you pass away. Your third decision is identifying what assets to include in the trust. Finally, choose your beneficiaries and the terms under which they may receive distributions.
3. Create the Document: Your Denver trust attorney will provide the necessary paperwork and walk you through the process of creating the trust. The trust formalizes the decisions you made, in writing. You then need to sign these documents before a notary public to make them legitimate.
4. Make Title Changes: The final step involves changing the titles of properties absorbed by the trust. This is necessary to ensure the proper transfer of ownership. Once transferred, if it is an irrevocable trust, the trust owns the property. For a revocable living trust, you own the property as a trustee of the trust, instead of as an individual.