Trustor and trustee enter into an agreement to create a revocable living trust. The purpose of the creation of the trust is to provide for the convenient administration of the assets of the trust without the necessity of court supervision in the event of the trustor's incapacity or death. Other provisions of the trust document include: trust assets, disposition of income and principal, and administration of the trust assets after the death of the trustor.
A Colorado Living Trust — Revocable, also known as a revocable living trust or inter vivos trust, is a legal document that allows you to manage and control your assets during your lifetime and dictate how they will be distributed after your death. This type of trust is established by a granter, who transfers their assets into the trust and appoints a trustee to manage those assets. One significant advantage of a revocable living trust in Colorado is that it provides flexibility and control. As the granter, you can act as the trustee, allowing you to maintain full control over your assets and make changes to the trust at any time. Additionally, the trust grants you the authority to determine who will manage your affairs if you become incapacitated or pass away, avoiding the need for a court-appointed guardian or conservator. Colorado Living Trusts — Revocable come in different types, such as: 1. Individual Living Trust: This is the most common type of revocable living trust, where an individual creates a trust, transfers their assets into it, and retains control as the trustee during their lifetime. 2. Joint Living Trust: A joint revocable living trust is established by a couple, allowing both spouses to transfer their assets into the trust and act as co-trustees. This type of trust is beneficial for married couples who wish to manage their assets collectively. 3. AB Living Trust (or Marital and Family Trust): This is a specialized revocable living trust that is commonly used in estate planning to obtain tax advantages. It involves the creation of two trusts, one for each spouse, typically to minimize estate taxes by utilizing the applicable exemption for each trust. 4. Medicaid Asset Protection Trust: This type of revocable living trust is designed to protect assets from Medicaid eligibility requirements. By transferring certain assets into the trust at least five years before needing Medicaid, the assets are exempt and not considered when evaluating eligibility for long-term care benefits. In summary, a Colorado Living Trust — Revocable is a flexible estate planning tool that allows the granter to retain control over assets during their lifetime and determine how they will be distributed after their death. The different types of revocable living trusts cater to specific needs, such as joint ownership, tax planning, or asset protection for Medicaid eligibility. It is advisable to consult with an experienced attorney to determine which type of revocable living trust best suits your unique circumstances.
