What Is a Revocable Trust?
A revocable trust is a legal document that holds and manages assets for the benefit of specific individuals or entities. The unique feature of a revocable trust is that it can be amended or revoked by the grantor at any time. At TNS Associates, our experienced estate planning attorney in Cherry Creek, CO, provides guidance and legal support to navigate the intricacy of a revocable trust in Colorado.
Common Types of Revocable Trusts
Two prominent types of revocable living trusts are living trusts and land trusts. Each serves unique functions and offers distinct advantages.
- Living Trust: A living trust, also known as a revocable trust or inter vivos trust, is a legal entity that holds, manages, and distributes assets during the grantor’s lifetime and upon their death.
- Land Trust: A land trust, a specialized form of revocable living trust, specifically holds title to real estate assets. It separates the ownership of the property from the public records, providing an additional layer of privacy.
Living trusts and land trusts, as subsets of revocable living trusts, offer distinct advantages catering to different needs. Living trusts provide comprehensive asset management, while land trusts offer specialized real estate handling. Understanding these and other types of trusts and their functionalities is key to optimal estate planning.
Benefits of a Revocable Trust
Revocable trusts provide a robust framework for managing assets in a flexible, private, and controlled manner.
- Avoiding Probate: Revocable trusts facilitate a faster transfer of assets upon the grantor’s death, bypassing the often lengthy and costly probate process.
- Privacy: Unlike a will, the details of a revocable trust are not made public, ensuring the estate’s details remain confidential.
- Control: The grantor retains the right to amend or terminate the trust at any time, providing flexibility and autonomy over the trust’s terms and assets.
The benefits of a revocable trust highlight the tool’s adaptability and security in estate planning. Whether for avoiding probate, maintaining privacy, or ensuring personalized control, revocable trusts stand out as a practical solution for varied estate needs.
How Much Should Revocable Trust Cost?
Costs vary based on complexity but expect to pay anywhere between $1,000 to $3,000 for a basic revocable trust in Colorado. It’s essential to recognize that the specific legal needs, the choice of an estate planning attorney, and the intricacies of the trust’s structure can influence the final cost.
How to Set Up a Revocable Trust
Setting up a revocable trust requires careful planning and legal assistance. The process involves:
- Consulting an Experienced Attorney: Finding a qualified estate planning attorney in Cherry Creek, CO, is the first essential step. They will assess your individual needs and guide you through the legal complexities.
- Drafting the Trust Agreement: The trust agreement must be drafted with precise terms, clearly outlining the roles of the grantor, trustee, and beneficiaries. This legal document governs the trust and must be meticulously prepared.
- Transferring Assets Into the Trust: The revocable trust becomes effective when assets are transferred into it. This may include real estate, bank accounts, and investment portfolios.
- Regular Review and Updates If Necessary: Life changes and legal adjustments may necessitate amendments to the trust. Regular review ensures that the trust continues to align with the grantor’s wishes and complies with legal requirements.
At TNS Associates, an estate planning attorney in Denver, Colorado, can guide you through each step, ensuring that all legal requirements are met, and the trust aligns with your needs. Contact us today for a consultation to explore the benefits of revocable trust and find the right solution for your estate planning needs.