Colorado Revocable Living Trust Form: What You Need to Know
A living trust is a legal document that allows you to control your property during your lifetime and after death. When you create a living trust, you transfer ownership of your property from yourself to the trust. This can be a great way to avoid probate and ensure that your property goes to the people you want it to go to after your death. Here are the basics of a Colorado revocable living trust.
What is A Revocable Living Trust
A revocable living trust is a type of living trust that can be modified or revoked at any time by the person who created it (the "grantor"). Once the grantor dies, the living trust becomes irrevocable, and the property is distributed according to the terms of the trust. A revocable living trust in Colorado is governed by the Colorado Uniform Trust Code (CUTC), which went into effect on January 1, 2019.
Why Create a Revocable Living Trust
You might want to create a revocable living trust for many reasons. Some of the most common reasons include the following:
To avoid probate: Probate is the legal process of distributing a person's assets after death. If you die without a living trust, your assets must go through probate. This can be a long and expensive process.
To keep your affairs private: Probate is a public process, which means anyone can see your assets and who gets them after you die. If you create a living trust, your affairs will be private.
To ensure your assets go to the people, you want them to: If you die without a living trust, your assets will be distributed according to Colorado’s intestacy laws. These laws may not distribute your assets the way you would want them to be distributed.
But it would help if you remembered that a living trust is not all you need to avoid probate. For instance, Colorado has adopted the Uniform Probate Code to streamline the probate process. Alongside the simplified probate process for small estates, the beneficiaries can avoid the probate process to claim properties valued at $70,000 or less.
Another thing to remember is that creating a living trust doesn't eliminate the possibility of having a Will. For instance, you may still require a Will when assigning a guardian to a minor child or when you want to take care of properties that were not initially included in the trust.
When it comes to estate taxes, a living trust in Colorado will less likely reduce them. Colorado does not have its estate tax, and the federal estate tax levies only apply to estates valued at approximately $12 million ($24 million for joint estate of spouse).
What is contained in Colorado Revocable Living Trust Form?
A Colorado revocable living trust form must contain the following information:
The name and address of the trust.
The names and addresses of the trustees.
The details of the beneficiaries.
A description of the property to be held in trust.
The purpose of the trust.
The rules for distributing the assets of the trust.
The date the trust was created.
The signature of the grantor.
Creating a Revocable Living Trust in Colorado
If you want to create a revocable living trust in Colorado, you will need to follow these steps:
1) Choose a trustee: The trustee is the person who will manage the trust and distribute the assets according to your instructions. You can choose a family member, friend, or professional trustee.
2) Prepare the trust document:The trust document is the legal document that creates the trust. This document must contain all of the information listed above.
3) Transfer ownership of your property to the trust: Once you have created the trust, you will need to transfer ownership of your property from yourself to the trust. This can be done by deed, title transfer, or other means.
4) Fund the trust: You will need to put money or property into the trust for it to work.
5) Keep track of your assets: It is essential to keep track of all the assets you have put into the trust. You will need to update the trust if you acquire any new assets.
Are you planning to create a revocable living trust? Please get your Colorado living trust forms for free at Forms.legal. Be sure to fill in the required areas, download and print the form.