Living Trusts and Asset Protection

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Living Trusts and Asset Protection
Commonly Asked Questions And Answers
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Living Trusts
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What Is A Living Trust?
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A living trust, also called revocable living
trusts or inter vivos trusts, is a document that
creates a relationship between you, some or all
of your property, and other people you
specifically identify in the document
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Trust Parties
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What People Do I Identify In My Living Trust?
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You (the trustor) have to name a trustee who will
manage the trust
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YOULL ALSO HAVE TO IDENTIFY THE BENEFICIARY(S),
the person(s) who gets to use or benefit from
the property you transfer to the trust
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Trust Property
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What Do I Transfer To My Trust?
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Almost anything you like
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You can transfer any of your individually owned
property into the trusts name
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Trust property, once properly transferred from
you to the trust, is known as the trust corpus
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Asset Protection
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Will A Living Trust Help Me Protect My Assets?
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NO
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If you want to protect your assets from, for
example, creditors or lawsuits, your living
trust is not the tool to rely upon
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Though there are other asset protection tools
available, living trusts are not suited for this
purpose
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Benefits
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If Living Trusts Dont Provide Asset Protection,
What Do They Do?
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They primarily allow you to avoid probate
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You can use your trust to transfer your property
to your heirs after you die, allowing your estate
to save unnecessary expenses and avoid the often
lengthy probate process
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Creation
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What Do I Need To Do To Create A Living Trust?
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Write It Down
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The trust creation process itself is not
difficult, though you need to create a document
that meets Colorado legal standards
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You also need to make sure you transfer your
property to the trust properly, a process called
funding
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Funding can be complicated, and often takes
careful planning
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Other Options
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If I want to protect my assets, do I even need a
living trust?
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Probably, though it depends on your circumstances
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An estate plan that focuses on asset protection
will likely use several tools
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However, even though a living trust does not
afford asset protection benefits, your plan might
still include such a trust because of the
benefits it does provide
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Learn More About Living Trusts and Asset
Protection in Colorado
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www.ColoradoEstatePlan.com
719-520-1474 303-736-6060