Rotate Legal Colorado Living Trusts Forms For Free

Yes, you can avoid probate in Colorado by making a living trust, which will prevent any asset you own from going to probate courts, including bank accounts, real estate, and more. You can do so by creating a trust document that names a specific individual to serve as a successor trustee following your death.

In some states, if you want to obtain a copy of a trust, you must ask in writing for the trustee to provide a copy. In the state of Colorado, trustees are required by law to notify beneficiaries about the trust ? typically within 60 days after the trustor's death.

A trust is a legal arrangement whereby one party (the grantor) allows another party (the trustee) to hold property for the benefit of a third party (the beneficiary). This language applies regardless of whether the trust is formed in Colorado.

A notary is not required in order for the trust agreement to be valid, although a preferred method to ensure the validity of the document in the event of a challenge.

To create a valid trust under Colorado law, the settlor must express an intent to create a trust and have adequate capacity (measured under the same standard applying to wills). Alternatively, a valid trust can be created through authorization provided under a statute, judgment, or decree.

Transfer Taxes The good news regarding trusts and taxation is that gifts and inheritances are not considered income for income tax purposes. This means that gifts to trusts and distributions of principal from trusts to beneficiaries are not subject to income tax.