If you are an adult living in Colorado, it may be in your best interest to create a revocable living trust. This is because it will allow you to protect important assets from being seized while still retaining control over them. As the document takes effect as soon as it’s executed, it can also provide you with an effective tool to manage your affairs while incapacitated.
A revocable trust can be altered at any time
One of the key benefits of a revocable living trust is that its terms can be altered at any time. For instance, you could remove a beneficiary at any time without that person’s consent. You could also add a guardian for a minor child without spending a lot of time or money altering the document. As the name suggests, you could revoke the document at any point assuming that you are of sound mind when doing so. It’s important to note that it becomes an irrevocable trust after your passing.
You can name yourself as the trustee
Another key benefit of a revocable living trust is that you can name yourself as the trustee. This means that you decide how assets within the trust are managed and distributed to beneficiaries. You also have the power to name an alternate trustee who oversees your assets while incapacitated or after you pass away. An attorney may be able to provide more insight into other benefits from using this type of estate planning tool.
Creating a trust may be ideal if you have children, own a business, or have valuable property that you’d like to keep after a divorce. Of course, you will want to ensure that it is properly funded and that it otherwise conforms with state law.