You may have heard that trusts are only for the ultra-wealthy, but that’s a myth. In reality, trusts are powerful estate planning tools for everyone, not just millionaires. At Helland Law, we often recommend considering a revocable living trust as part of your estate plan – especially if you want to avoid probate, save your family time and money, and maintain privacy.

What Is a Trust? A trust is a legal arrangement where you (the “grantor”) transfer ownership of your assets to the trust, to be managed by a “trustee” for the benefit of your chosen beneficiaries. In practical terms, for a revocable living trust, you often act as your own trustee while you’re alive, maintaining full control over your assets. You can buy, sell, spend, and manage your property just as you do now. The key difference comes after death: a successor trustee – someone you’ve named – seamlessly takes over management of the assets and distributes them to your beneficiaries according to the instructions you’ve laid out in the trust document. All of this can happen without involving the probate court.

Why Avoid Probate? 

Probate is the court-supervised process of administering a will. Even with a will, your executor must file the will with the court, inventory assets, notify creditors, pay debts, and eventually distribute assets to heirs under court oversight. Probate in Colorado comes with costs and delays. Court filing fees, legal fees, appraisal costs, and executor commissions can chip away at your estate – potentially consuming up to 10% of your estate’s value in some cases. For example, on a $500,000 estate, probate costs might run tens of thousands of dollars. And because the court’s docket is busy, the timeline for probate can stretch from many months to over a year. In fact, in Colorado a typical probate might take roughly 8 months to 2 years to fully conclude. During that time, your beneficiaries could be waiting to receive their inheritances, and certain assets might be tied up.

By establishing a trust, you can spare your family those hassles. Assets owned by a properly funded trust do not go through probate at all – the successor trustee can often distribute those assets to your loved ones within weeks of your passing, not months or years. This means immediate access to funds for your family’s needs, which can be crucial in paying bills or handling expenses after your death. Additionally, avoiding probate can save your estate a significant amount of money in court costs and legal fees. Instead of losing potentially 5–10% of your estate to probate expenses, those funds can go to your beneficiaries or favorite causes.

Other Benefits of Trusts

Aside from probate avoidance, trusts offer several other advantages:

• Privacy: A will that goes through probate becomes a public record, meaning anyone could look up your estate’s details. A trust, on the other hand, is a private document. The distributions and terms remain confidential among your beneficiaries. This can protect your family’s privacy and keep nosy relatives (or scammers) from knowing what your heirs inherited.
• Control and Protection: With a trust, you can set specific rules or conditions on distributions if you wish. For example, if you’re leaving assets to young children or grandchildren, you could stipulate that they only receive their inheritance at certain ages or milestones (like graduating college). You can also arrange for the trustee to manage and invest assets on behalf of a beneficiary until they are mature enough. This kind of flexible control isn’t possible with a basic will. Trusts can also protect beneficiaries who might not be good with money by preventing them from blowing through an inheritance all at once.
• Estate Tax or Special Situations: While federal estate tax currently doesn’t affect most people (and Colorado has no estate tax), if you have a large estate or special concerns, trusts can help shelter assets, reduce taxes, or provide for special needs beneficiaries without jeopardizing benefits. We can advise if those apply to your situation.

Trusts vs. Wills – Do You Need Both? 

It’s not necessarily “either/or.” Many people benefit from having both a will and a trust in their plan. In fact, if you create a revocable trust, we will typically prepare a companion “pour-over will” for you. This special will states that any assets you forgot to put into your trust during life should be transferred (“poured over”) into the trust upon your death. This ensures nothing is left out. The combination of a living trust + pour-over will means all bases are covered: your trust governs the main distribution and the will handles any stragglers. Helland Law will help you decide the right combination of documents. Our advice is tailored – if a trust will genuinely benefit you, we’ll tell you; if a simple will is enough for your needs, we’ll tell you that too. The goal is to implement what makes sense for you.

Accessible to Everyone

Don’t be intimidated by the idea of a trust. Our clients are often surprised at how straightforward the process can be with our guidance. While it’s true that establishing a trust involves some upfront cost and effort (it’s more work to draft than a basic will, and you do need to retitle assets into the trust), the long-term savings and peace of mind can far outweigh these initial steps. We make sure you understand everything along the way. Remember, trusts aren’t just for the wealthy. They’re for anyone who wants to streamline their estate and take care of their loved ones in the most efficient way.

Whether you want to protect a blended family, set up a legacy for your grandchildren, or just make life easier for your spouse after you’re gone, we can design a trust that achieves it. At Helland Law, we will discuss your assets, family dynamics, and concerns, and help determine the best route. Our philosophy is that estate plans are not one-size-fits-all, and we help you make an informed decision about trusts versus other options, so you feel comfortable.

Maybe you’re unsure where to begin or whether you even need a trust – that’s okay. We encourage you to reach out for a consultation. We’ll answer your questions in plain language. Also, you can read our recent article – How to Get Your Estate Plan Started – for some basic steps and considerations when beginning the estate planning process. It’s a great starting point to get you thinking about your goals, and it underscores that planning isn’t just for the elderly or the ultra-rich; it’s for everyone.

Ready to establish a Trust?

A trust can be a game-changer for your estate plan by avoiding probate, saving money, and giving you more control over your legacy. Helland Law has the expertise to set up your trust properly and ensure it works as intended when the time comes. Schedule your free first meeting today!