Wills & Trusts in Colorado Springs

Dying With a Will vs. Without a Will

In the state of Colorado and elsewhere, those who die without a will are said to have died intestate, which has a fairly simple meaning.

If you die prior to creating a will, your residuary assets and financial holdings could go into probate, and that could drive up costs for your loved ones and unduly complicate the process of passing on what you owned to your chosen beneficiaries.

Whether or not your assets go into probate will depend on several factors, including the size of your estate and its value. Even so, working with estate attorneys in Colorado Springs beforehand can relieve your loved ones of this potential burden and lighten the load during what will already be a very difficult time.

Probate simply means that the courts are now involved in the distribution of your assets, something trust attorneys in Colorado Springs want to help you and your family get ahead of.

Differences Between a Will and Trust

Understanding the differences between a will and a trust is crucial for effective estate planning. 

Purpose:

• Will: A legal document that outlines how a person's assets and affairs should be handled after their death. It can also designate guardians for minor children.
• Trust: A legal arrangement where a trustee holds and manages assets on behalf of beneficiaries. Trusts can be used to manage assets during a person's lifetime and after their death.

Probate:

• Will: Must go through probate, a court-supervised process to validate the will and distribute assets. This can be time-consuming and public.
• Trust: Typically avoids probate, allowing for a more private and quicker distribution of assets.

Activation:

• Will: Takes effect only after the person’s death.
• Trust: Can be active during a person’s lifetime (living trust) and continue after their death.

Flexibility:

• Will: Generally less flexible, as it only addresses asset distribution after death.
• Trust: Offers more flexibility in managing and distributing assets, including setting conditions for distribution.

Control:

• Will: Provides instructions for asset distribution but doesn’t manage assets during the person’s lifetime.
• Trust: Allows for ongoing management of assets, which can be beneficial if the person becomes incapacitated.

Cost:

• Will: Generally less expensive to create but can incur higher costs during probate.
• Trust: More costly to set up initially but can save money by avoiding probate.

Privacy:

• Will: Becomes a public record once it goes through probate.
• Trust: Remains private, as it doesn’t go through probate.

Both wills and trusts have their advantages and can be used together to create a comprehensive estate plan. 
 

Whether your loved one died intestate or left a will, contact the Colorado estate attorneys at The Gasper Law Group as soon as possible.

Trust Preparation in Colorado Springs

Trusts are important devices used in estate planning and can work in conjunction with wills. It’s important to work with trust attorneys in Colorado Springs who have plenty of experience in these matters and can assist with the planning process to ensure that your trust is properly set up. Otherwise, you may overlook certain aspects that leave you and your assets vulnerable. Attorneys can also assist with making updates to an existing trust to ensure that you’re consistently prepared.
Features of a Living Trust
The principal difference between trusts and wills is that wills only go into effect once the person who created it has passed, while a trust can go into effect whenever the creator wants.

Trustees who are listed in trusts are beneficiaries that are put in charge of handling certain assets either before or after the death of another individual. A trustee doesn’t have to be a person, either; it can also be an institution such as the creator’s bank or a law firm.

A trust will designate two types of beneficiaries:

• One beneficiary is designated as the individual who will receive income through the trust, which is often either the trust holder’s child, an elderly recipient such as a parent, or multiple individuals. In many cases, these beneficiaries will receive repeating payments from the trust as a source of income.
• The second beneficiary is the individual who receives any remaining income after the first beneficiaries pass. For instance, a second beneficiary may be the surviving children of the first beneficiary.

It’s also important to keep in mind that trusts only cover specific properties clearly defined in the trust, unlike wills that cover all of an individual’s assets. What also sets trusts apart from wills is that trusts don’t designate caretakers for property or pets, disclose funeral arrangements, or cancel debts owed.

Beyond the basic mechanics, establishing a trust can offer unique benefits depending on your financial goals. For example, irrevocable trusts can provide tax advantages and protect assets from creditors under certain conditions. Moreover, by setting up a trust, you can ensure more controlled and private management and distribution of your estate, potentially even avoiding the public scrutiny that sometimes accompanies probate. Thoughtfully structured trusts can cater to varied needs, such as providing steady income to beneficiaries or setting stipulations for inheritance, all reinforcing your long-term intentions for asset management.

Advantages of a Living Trust

There are several benefits that come with setting up a living trust, as opposed to creating a will or neglecting to set up any securities at all. In fact, it’s often a good idea to have a trust either in lieu of a will or to complement/reinforce your will, as it will help you manage your property while you’re alive.

• Helps avoid probate – Probate is the process of distributing assets through the court system. Probate is often expensive and complicated, with potential delays, so it’s best to avoid probate when possible, which you can do through a living trust.
• Saves money – You can also save money with a living trust, particularly if someone attempts to contest it, as a trust tends to hold up better than a will in these instances.
• Protects you – Living trusts also protect your privacy and assets in the event you become ill or mentally incompetent.

Contesting a Will or Trust

If individuals would like to contest a will or a trust, they will need to file a lawsuit. Whether you are defending your trust or contesting another person’s trust, you will need an estate attorney in Colorado Springs by your side to help you prepare all of the necessary documentation. An attorney will also be able to assist with either proving or challenging the grounds on which individuals would like to contest the trust.

Living trusts also offer significant protection against unforeseen changes in personal circumstances. For instance, they can be tailored to address changing tax laws and financial needs of beneficiaries over time, maintaining their relevance despite evolving situations. Additionally, living trusts can encompass provisions for succession in business interests, directly impacting families with business assets. Working with a trust lawyer in Colorado Springs ensures these complex structures are appropriately aligned with personal goals, thereby solidifying one's estate planning strategy.

How a Colorado Springs Estate Attorney Can Help

When a loved one dies, you will have enough to worry about, and the last thing you want to do is go to court and deal with complicated probate procedures. That is why it is so important to have the help of a Colorado Springs estate attorney in your corner.

A Colorado probate lawyer can help you navigate the complexities of estate law so you can build a better future for yourself and your family. From reviewing the will with your loved one left behind to deciding what type, if any, of probate will be required, we can guide you through every step of this often difficult process.

Understanding probate also involves considering the financial implications of the process. Depending on how your estate is structured, the costs related to probate can be minimized by strategic planning. An estate planning attorney can advise you on transferring certain assets outside of probate, such as through joint ownership or designating beneficiaries to certain accounts. This not only eases the financial burden on your loved ones but also ensures a smoother transition of assets.

Contact Our Estate Planning Attorneys in Colorado Springs

Regardless of your needs, The Gasper Law Group is here to help you at any step. You cannot afford to leave your estate planning to chance, and you need to protect yourself with a valid will or trust. At The Gasper Law Group, we are skilled at estate preparation in the state of Colorado and the Colorado Springs area. We understand the needs of our neighbors.

Contact us today to set up a consultation about your estate planning!