We all want to ensure our loved ones are taken care of after we are gone. Having a trust and will helps you do just that.
Wills and trusts are legal documents that specify how a person’s estate (finances/property) should be handled.
A will kicks in after you pass away and outlines how you want your assets distributed, but it goes through probate court, which is time-consuming and public.
A trust, on the other hand, can be used while you’re alive to manage assets and avoid probate altogether, but it requires more planning and legal setup.
In this post, we’ll walk you through the exact steps to set up a will and trust in Colorado in 2024.
How to Create a Will and Trust in Colorado
To create a trust and will in Colorado, you have to:
- Determine your assets and beneficiaries
- Choose an executor/trustee
- Draft the necessary documents
- Sign and notarize the documents
Determine Your Assets and Beneficiaries
The first step in creating a will and trust in Colorado is to figure out what you own and who you want to leave it to. Your assets will include:
- Business interests
- Life insurance policies
- Digital assets, such as cryptocurrency
- Any homes, land, or other properties you own
- All checking, savings, and money market accounts
- Stocks, bonds, mutual funds, retirement accounts, and other investments
- Valuable personal items such as jewelry, art, collectibles, vehicles, and other significant belongings
Once you have listed your assets, estimate their current market value. You might need professional appraisals for some items, such as real estate. Also, list any debts or liabilities you have, such as mortgages, car loans, credit card debt, or other obligations.
Next, decide who will receive your assets after your death. Beneficiaries can be individuals, such as family members and friends, or organizations, such as charities.
Choose contingent beneficiaries in case your primary beneficiaries pass away before you or cannot inherit.
Choose an Executor/Trustee
An executor is responsible for managing your estate after your death. Their duties include gathering your assets, paying debts and taxes, and distributing assets to your beneficiaries according to your will.
A trustee manages assets placed in a trust on behalf of your beneficiaries. Their responsibilities include investing trust assets, distributing income and principal as per the trust’s instructions, and ensuring the trust operates according to your wishes.
Select someone you trust to act in your best interests and those of your beneficiaries. Ensure your chosen executor or trustee has the capability to handle financial matters and administrative tasks.
Also, clearly communicate your wishes and expectations to your executor or trustee. Discuss your estate plan with them so they understand their responsibilities and how you want your assets distributed.
Draft the Necessary Documents
There are two main options for drafting will and trust documents:
- Do-it-yourself wills and trusts: There are online resources and software programs that guide you through the process. However, be aware that legal requirements can vary by state, and mistakes in these documents can cause problems later.
- Hiring an attorney: An estate planning attorney ensures your documents are legally sound and meet all Colorado requirements. This option is especially recommended for complex situations or if you have significant assets.
Whichever route you choose, make sure the documents are drafted according to Colorado law. Also, review your drafts carefully to ensure they accurately reflect your intentions.
Sign and Notarize the Documents
You must sign your will in the presence of two witnesses who are not beneficiaries. Witnesses should be adults who can attest that you are of sound mind and not under duress.
For trusts, you, as the grantor of the trust, need to sign the trust document. Depending on the type of trust, you may need witnesses and/or a notary public. A notary public is a state-appointed official authorized to witness the signing of legal documents and verify the identities of the signatories.
A self-proving affidavit is a sworn statement signed by you and your witnesses in front of a notary public. It verifies the authenticity of your will without requiring your witnesses to testify in court after your death.
After signing your will and while your witnesses are still present, sign the self-proving affidavit in front of a notary public. The notary will then notarize the affidavit.
Let Birch Grove Legal Help You With Estate Planning
You’ve worked hard to build your life and accumulate your assets. Now, you want to ensure your legacy is protected and your wishes are carried out. Consulting with an experienced estate planning attorney is the best way to ensure your will or trust is legally valid and protects your loved ones.
At Birch Grove Legal, we take the time to understand your unique situation and craft a plan that reflects your wishes. Contact us today for a free consultation and let’s discuss how we can help you secure your legacy.
