Power of Attorney
Much like a potter at a wheel, a trust maker (sometimes called grantor or settlor or trustor) can mold a vessel to carry its contents through theThe vessel created is called a trust instead of a pot. Its purpose and intended contents, like those of the pot, are determined by the maker.Its duration (thickness) can be established by the maker. Like a pot, a trust can be created to accomplish a temporary or long-term task.
The pot analogy aside, trusts are useful tools for customizing complex estate plans. If probate would take place in two or more states after your death because you owned property in two or more states, or if the estate would be subject to federal estate tax after your death, or if you have a desire for privacy in your final affairs, or another valid reason, a trust may be a good idea.
Each client's situation must be analyzed with care to determine what provisions should be included in a particular trust. Do you have a child with special needs? A potential heir or beneficiary with a spending problem or clouded judgment or manipulative spouse? Perhaps each party in your relationship came into it with substantial or unequal assets or liabilities, or with their own adult children? These are all good reasons to consider a trust instead of a will as your primary method of passing on your assets.
One popular reason many clients anticipate the need for a trust is to avoid the probate process. In Colorado, probate does not carry the substantial costs and delays common in other states. Furthermore, trust administration can be expensive for the estate and risky for the trustee, so even though the fees involved in drafting trusts can be substantially greater than basic wills, our office recommends trusts only when other valid reasons for the usefulness of a trust exist for a particular client on a case-by-case basis.
We are not anti-trust or pro-probate; we are anti-waste and pro-client. Give us a call or drop us a note and we would be glad to evaluate your particular situation form the basic information your provide. Estate planning does not have to be expensive or time-consuming or mysterious, and we will make sure you understand what your plan is and why it makes sense for your situation.