Denver Revocable Trusts Lawyer
How Revocable Living Trusts Work
A revocable living trust is a legal document dictating how to handle the trust-held assets when the person who made the trust (the grantor or trustor) dies. These trusts are:
- “Living” trusts because they are created by an individual during his or her lifetime.
- “Revocable” trusts because they can be changed while the trustor is still alive.
Here’s how revocable trusts work:
- The trustor creates the RLT: As part of this process, the grantor will usually name a successor trustor, who would take control of the trust if the grantor were to become incapacitated. Typically, grantors create revocable trusts with other estate planning tools, like pour-over wills.
- Assets are transferred to the revocable trust: This is known as funding the trust. Assets that can be transferred to the trust can include stocks, bonds, retirement accounts, royalties, partnership rights, business interests, and much more.
- RLTs can be modified during the trustor’s lifetime: As assets and circumstances change during the grantor’s life, the terms of the trust can be updated, as needed. In fact, it’s usually a good idea to regularly revisit the terms of RLTs to keep them current.
- The revocable trust converts to an irrevocable trust upon the trustor’s death: Once the grantor passes away, the revocable trust automatically converts to an irrevocable trust. This means that the terms of the trust will no longer be unchangeable.
What Are the Benefits of Revocable Living Trusts?
When revocable living trusts are properly established and funded, they can offer some key benefits, like (but not limited to):
- Probate avoidance: Assets held by revocable trusts will not have to pass through probate. That can simplify (or eliminate the need for) probate, saving time, money, and the potential stress associated with that process.
- A faster transfer of assets: Since the assets held by revocable trusts won’t go through probate, they can typically be distributed to beneficiaries sooner (than if they were part of probate).
- Privacy: Since revocable trusts and their assets are not subject to probate, the details and assets of these trusts will not become part of the court (and public) record. This can provide invaluable privacy and peace of mind.
Set Up a Discovery Session with an Experienced Denver Trusts Lawyer: Contact Us
Call (303) 578-2745 or email the McKenzie Law Firm to schedule a no-obligation Discovery Session and find out more about our trust and estate planning services.
At the McKenzie Law Firm, we truly care about our clients. That’s why:
- We are passionate about providing estate planning services and solutions that help our clients minimize future stresses, costs, and losses.
- We are dedicated to putting our clients’ needs, interests, and goals first.
- We always go the extra mile to deliver exceptional plans, recommendations, and services.
While you can get more information during a no-obligation Discovery Session, we also invite you to check out these helpful resources for additional insights on estate planning in Colorado: