Developing and funding trusts can be an effective way to transfer certain assets to select beneficiaries both during your lifetime and after you pass away. In fact, trusts can be an integral part of a comprehensive estate plan, and they can be pivotal to helping loved ones avoid a lengthy probate process in the future.

When it comes to setting up and funding trusts, however, there are a lot of options, and the specifics of your situation, as well as your goals for the future, can inform just what your best choices are for funding trusts. We’ll take a closer look at the options below.

Trusts Can Be Funded With…

  1. While these are the assets commonly used to fund trusts, here’s what else grantors should know about funding trusts, a Pueblo estate attorney explains.

    While these are the assets commonly used to fund trusts, here’s what else grantors should know about funding trusts, a Pueblo estate attorney explains.

    Cash – Money from checking/savings accounts, retirement accounts, CD accounts or other accounts can all be transferred directly into a trust, either immediately upon creating it – or at any point in the future, such as upon the death of the grantor (i.e., the person who has developed the trust).

  2. Real property – This can include homes and real estate, household furniture, art collections, jewelry, firearms, motor vehicles, and other personal effects. In many cases, trusts can be an effective way to pass precious family heirlooms down to beneficiaries.
  3. Insurance proceeds – Having these assets be passed through a trust can protect the cash value of the policy, ensuring that beneficiaries are able to retain more of the proceeds than they would have received had the trust not be in existence.
  4. Business interests – This can include stock in business, as well as partnership interests.
  5. Other assets – These can include (but are by no means limited to) stocks, bonds, royalties, patents and even mineral rights.

Funding Trusts: More Important Information

  • For living trusts, grantors can change out the assets held by the trust at any point, as long as they are of sound mind. Upon their death, however, the assets held by the trust cannot be altered, and they will be distributed according to the trust’s terms.
  • Passing assets through a trust can help ensure that beneficiaries have access to them far sooner than would have been possible otherwise. This is because, without the trust in place, it could take months or longer for the beneficiaries to obtain the asset due to probate.

Contact a Trinidad and Pueblo Estate Attorney at Gradisar, Trechter, Ripperger & Roth

When you are ready to develop a trust or put together a comprehensive estate plan, it’s time to contact a seasoned Trinidad and Pueblo estate attorney at Gradisar, Trechter, Ripperger & Roth. With our trusted attorneys on your side, you can be confident that your case and legal matters will be brought to a successful resolution in the most efficient manner possible.

To learn more about our superior legal services and how we can assist you, contact us by calling (719) 556- 8844 or by emailing us using the contact form on this page. From our offices based in Pueblo, we represent clients in Trinidad, La Jara, Lamar, Walsenburg, Alamosa and throughout the state of Colorado.

Categories: Estate Planning, Trust Administration