A Revocable Living Trust is created by a person who is both the trustee and beneficiary during that person’s life. This type of trust allows a person to put all of her assets into the name of the trust, yet manage them more or less as she would have managed them had she owned them personally. At the settlor’s death, the assets in the revocable living trust will continue to be held and managed by a successor trustee or will be distributed according to the terms of the trust. The assets in such a revocable living trust will still make up part of the person’s taxable estate, but will not be probate assets required to go through the state probate process.
The primary benefits of using a revocable living trust here in Colorado, because our probate process is not excessively burdensome, lengthy, or expensive, come from the fact that the trust instrument does not become a public record like a will, thus preserving your family’s confidentiality if this is important to you. Another very important aspect of the Revocable Living Trust is that if the Settlor becomes incapacitated, a successor trustee will be able to step in and manage the disabled person’s assets with minimal disruptions. Finally, if the trust holds assets such as real property that is located in another state (like a Northern California vacation home, for instance), a revocable living trust is a great way to avoid probate in jurisdictions in which probate is costly and lengthy.
The primary benefits to a Colorado resident of using a Revocable Living Trust include:
