Revocable living trusts
Keep control now and protect your family laterA trust only works if it is built and funded correctly.
Most living trusts in Colorado are revocable: you can change or revoke them while you are alive and competent, and you usually serve as your own trustee. When you pass away or become incapacitated, the successor trustee you chose steps in and follows your instructions, often without a court-supervised probate.
The trust document is only half the job. A trust that is never funded, with your home, accounts, and other assets properly titled to it, may leave your family in probate anyway. We draft the trust, guide the funding, and coordinate beneficiary designations and a pour-over will so the pieces work together. Not sure whether you need a trust at all? Read Will vs. Trust in Colorado.
Benefits of a Living Trust
Why Colorado Families Choose a Living Trust
Many Colorado families choose a living trust because it can offer significant advantages over a will alone—both during life and after.
Avoid or Simplify Probate
Assets properly titled in a living trust often pass outside of probate.
Your successor trustee may manage trust assets without certain court proceedings.
Unlike probate proceedings, trust administration is generally a private process.
Control Asset Distribution
Decide when and how beneficiaries receive assets, including staggered inheritances.
Help Protect Minor Children
Hold and manage assets for children until they reach an age or milestone you specify.
What Is a Living Trust?
A Legal Arrangement You Control
A living trust—also known as an inter vivos trust—is a legal arrangement that allows you to transfer ownership of your assets into a trust during your lifetime. You typically serve as the initial trustee, continuing to manage and control your assets while you’re alive.
- You manage your assets as the initial trustee
- A successor trustee steps in if you’re incapacitated or pass away
- Many assets may pass outside of the probate process
- Different from a will, which only takes effect after death
How Does a Living Trust Work?
Establish, Fund, and Manage the Trust
Creating a living trust generally involves several steps, and proper funding is essential to accomplishing your goals.
- Establish the trust with an agreement tailored to your goals
- Transfer assets into the trust—home, accounts, business interests, and more
- Continue buying, selling, and managing property as before
- Your successor trustee takes over when needed
Who Should Consider a Living Trust?
A Trust May Be Right for You
A living trust may be appropriate for a wide range of Colorado families and individuals, depending on your goals and circumstances.
- Simplify the transfer of real estate and other assets
- Provide long-term protection for children
- Coordinate ownership interests and succession plans
- Grow your plan as your estate grows
Homeowners
If you own real estate, a trust may simplify the transfer of your property after death.
Parents
Parents often use trusts to provide long-term financial protection for children.
Married Couples
Couples frequently create coordinated estate plans that include living trusts.
Business Owners
A trust may help coordinate ownership interests as part of a broader succession strategy.
Veterans
Veterans often benefit from planning that coordinates trusts with military benefits and family goals.
Individuals With Significant Assets
As your estate grows, a trust can become an increasingly valuable planning tool.
Living Trust vs. Will
They Work Best Together
One of the most common questions we hear is whether someone needs a will or a living trust. The answer depends on your goals—many comprehensive estate plans include both a living trust and a pour-over will.
- A will takes effect after death and generally requires probate
- A living trust takes effect during your lifetime
- A trust can help manage assets if you become incapacitated
- Trust assets may pass outside of probate
Revocable vs. Irrevocable Trusts
Choosing the Right Structure
Most living trusts created in Colorado are revocable, but irrevocable trusts serve specialized planning objectives in the right situations.
- Revocable: change, amend, or revoke during your lifetime
- Irrevocable: used for asset protection and charitable planning
- Irrevocable trusts may support Medicaid or tax planning
- Not every family needs an irrevocable trust
Funding Your Living Trust
Creating the Trust Is Only the Beginning
Your trust should be properly funded by transferring appropriate assets into the trust. Many estate planning issues arise because trusts were created but never fully funded.
- Preparing new real estate deeds
- Updating financial account ownership
- Assigning business interests when appropriate
- Reviewing beneficiary designations
- Coordinating with your financial advisor, when appropriate
Common Living Trust Mistakes
Avoid the Pitfalls That Undermine a Plan
Avoiding these common mistakes can help your estate plan work as intended for your family.
- Forgetting to update the trust after major life events
- Choosing the wrong trustee
- Using generic online documents that don’t reflect Colorado law
Protect Your Family’s Future
Your Estate Plan Should Protect the People You Care About
Work with Trust Johnson Law to build a comprehensive estate plan coordinated with your military and VA benefits—with clear guidance and a veteran-focused perspective.
FAQ
Common questionsStraight answers about your situation.
Is a living trust the same as a revocable trust?
Most living trusts created for estate planning are revocable living trusts. However, not every living trust is revocable.
Do I still need a will if I have a living trust?
Usually, yes. Many estate plans include a pour-over will that works alongside the trust.
Does a living trust avoid probate?
A properly funded living trust may allow many trust assets to pass outside of probate. Whether probate is required depends on the nature of your assets and how they are titled.
Can I change my living trust?
If your trust is revocable, you can generally amend or revoke it during your lifetime while you have legal capacity.
How much does a living trust cost?
The cost depends on the complexity of your estate, your goals, and the documents included in your estate plan. We are happy to discuss options during your consultation.
<strong>Protect Your Family’s Future</strong>
Don’t see your question? Call (720) 334-7305 for a free consultation.
Keep reading
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Will vs. Trust in Colorado
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Wills and Trusts Attorney in Colorado
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Irrevocable Trusts in Colorado
When an irrevocable trust fits and what it can protect.
Special Needs Trusts in Colorado
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This page provides general information about Colorado law, not legal advice for your situation. Every case is different, and past experience does not guarantee a particular outcome.