What to consider when selecting trusts during the estate planning process

What to consider when selecting trusts during the estate planning process

The best type(s) of trust(s) to include in your estate plan will depend on your needs and goals. To help you identify precisely what these are so you can start honing in on the right trust(s) for your estate plan, it’s helpful to ask yourself (and then answer) the following questions:

  • Do I want to maintain any control over the trust? – And, more precisely, do you want to be able to alter the beneficiaries, holdings and/or terms of the trust at any point in the future? If so, you will likely want to set up a living trust (or revocable trust), which will provide you with this control.
  • When do I want the trust to go into effect? – Namely, do you want the trust to take effect during your lifetime or after you pass? This, too, can inform you of whether a living trust may be in your best interests. Here, it’s important to note that, for any living trusts you set up, these trusts will automatically be converted to irrevocable trusts upon your passing. In other words, these trusts, if you choose to set them up, cannot be modified after you pass away.
  • Who will be the beneficiaries of the trust? – Identifying the specific people whom you want to give to via the trust can be another determining factor when it comes to choosing trusts. This is because certain types of trusts are specifically devised for certain types of beneficiaries; for instance, special needs trusts are crafted to protect loved ones with special needs while A-B trusts are specifically geared towards spouses, charitable trusts are for giving to charities, etc.
  • What type(s) of asset(s) will be held by the trust? – And, more specifically, will the trust hold real estate, cash, insurance policy proceeds, stocks/bond, and/or some other type of asset? While there are trusts that are specific to distinct beneficiaries, there are also trusts devised for specific types of assets. So this too is another important consideration when trying to figure out the right trust(s) for your estate plan.
  • What are the primary goals for developing the trust? – In other words, do you want the trust to provide your loved ones with some immediate financial support after you pass? Do you want the trust to help reduce your loved one’s probate obligations in the future? Do you want the trust to protect some business holdings? Or do you have some other goal(s) in mind? These too can be crucial to consider when dialing into the trust(s) to incorporate into your estate plan.

Contact the Pueblo Lawyers at Gradisar, Trechter, Ripperger & Roth

For the highest quality services and representation for estate planning and probate in Colorado, contact the experienced Pueblo lawyers at Gradisar, Trechter, Ripperger & Roth. Skilled and respected, our lawyers have been dedicated to helping our clients navigate the complexities of the legal system and to favorably resolving their important legal issues since 1972.

To learn more about 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, Estate Planning: FAQs, Trust Administration