Colorado Springs Trust Lawyers
Helping Clients in El Paso County Protect Their Wealth & Avoid Probate
At Drexler Law, we offer clients experienced and personalized legal services pertinent to establishing a trust for an estate plan. Our Colorado springs trust attorneys have extensive knowledge of the latest legal trends to ensure that your estate is in good hands. We are committed to providing comprehensive advice and solutions tailored to our client's needs.
With years of experience serving individuals, families, and business owners, we are here to provide you with sophisticated legal solutions and peace of mind.
What is a Trust?
A trust is an agreement between a grantor (the person who creates the trust) and a trustee (the person or institution that holds legal title to the trust property). The purpose of a trust is to provide legal protection and control over assets, such as money, property, or even investments. Trusts are generally set up to ensure any assets placed in them are handled according to the grantor's wishes.
Trusts can be used for various purposes, including protecting assets from taxes, caring for children or disabled individuals, avoiding probate court proceedings, and even providing inheritance. They are also often used to provide income to the grantor's beneficiaries (those who receive money or property from the trust). The terms of a trust are determined by the grantor and are intended to ensure that all parties involved comply with the wishes of the trust maker. Trusts have many advantages, such as protecting confidential information and providing greater control over how assets will be distributed. However, trusts also have risks that must be weighed before establishing one.
A trust is a powerful tool that can be used to protect your family's future. With an estate plan based on one or more trusts, you can designate how and when assets are dispersed among your loved ones, avoid probate, and take advantage of tax and asset protection benefits.
What Is the Difference Between a Will & a Trust?
A will and a trust are important legal documents to consider in your estate plan. That said, these documents serve different purposes. Understanding their differences is essential for making effective decisions for your estate plan – and your family’s future.
Wills are legal documents that distribute your assets after your death. They require probate, which can be lengthy and expensive for your loved ones. A will – especially a pour-over will – can be a useful backup to trust.
On the other hand, a trust is beneficial because it allows you to manage your assets while you’re still alive. Trusts also avoid probate court, providing a much faster and more cost-effective way of managing your estate. Trusts are also often used to protect assets from creditors and provide tax benefits. Lastly, certain trusts can be irrevocable, meaning they cannot be changed once established
What Are the Benefits of Having a Trust?
If you’re considering whether or not to establish a trust, we can provide the legal guidance you need to understand your options.
The following are several important benefits of having a trust:
- Allows you to transfer assets while minimizing taxes
- Can ensure that your estate is divided according to your wishes
- Offers protection from creditors and lawsuits
- Can provide testamentary instructions
- Gives flexibility when it comes to estate planning
- May offer asset protection benefits
- It can help avoid probate
When designing a trust in an estate plan, it is essential to consider how particular assets can be transferred into the trust. Consult with Drexler Law to learn more about transferring assets into your trust – without losing any rights to use and control the property during your lifetime. Our trust attorneys in Colorado Springs can help you assess your needs and form and fund a trust that can secure your wealth for your family’s future.
How Does a Trust Avoid Probate?
A trust can avoid probate by transferring ownership of property, investments, or other assets to a trusted third party (the trustee) who manages the assets for the benefit of one or more beneficiaries. In the case of a revocable trust, such as a revocable living trust, the grantor can still benefit from trust property and avoid probate because the property isn’t counted as part of their estate for probate.
Probate avoidance is not only a trust’s most commonly sought-after benefit; it’s a defining feature. All trusts, whether set up as revocable or irrevocable, avoid probate.
How Does a Trust Protect Assets?
The same mechanism that helps trusts avoid probate can also protect them from the grantor’s creditors, lawsuits, and other liabilities. Certain trusts, particularly irrevocable trusts, offer asset protection benefits by titling themselves completely beyond the grantor’s control.
A revocable trust doesn’t offer asset protection benefits because the grantor can still alter the trust. Still, an irrevocable trust can provide these benefits because the grantor can’t amend its terms. For example, a creditor may garnish your irrevocable trust to collect a debt. Still, they may not go after assets in an irrevocable trust you established with your children as the named beneficiaries.
Contact Our Colorado Springs Trust Attorneys Today
Our trust attorneys in Colorado Springs can help you understand the important benefits of having a trust. When it comes to protecting your wealth for your loved ones’ benefit and your own, our guidance can direct you toward making sensible solutions.
Contact Drexler Law today to schedule a FREE consultation with one of our trust lawyers in Colorado Springs!