Why Everyone with a Minor Child Benefits from a Colorado Living Trust

Most people with minor children who have an estate plan that does not contain trust provisions, like a simple Colorado Will, believe they are making the proper arrangements for their minor children. However, one’s failure to utilize a trust, like a Colorado Living Trust, may result in unnecessary and ongoing legal fees. Colorado law requires a proceeding to designate a Conservator to manage such minor child’s non-trust inheritance. It also mandates court oversight over the Conservator’s actions until the minor child turns eighteen (18) years old. This costly, ongoing and avoidable legal process will likely diminish the child’s inheritance. The Denver Post published a telling and insightful article on February 21, 2010, titled Who’s Protecting the Unprotected which casts doubt upon relying on Colorado courts to ensure the well-being of your children.

To compound this unintended result, once the child reaches the age of eighteen (18), he or she will receive any remaining assets to spend as they choose. Most parents would agree that eighteen is not an ideal age to hand over an inheritance to a beneficiary.

By executing and funding a Colorado Living Trust based estate plan, you can avoid a Colorado probate proceeding for your estate, as well as a Conservatorship for your minor child’s inheritance. You can also prevent the child from receiving all of the assets upon attaining the age of eighteen (18) years. The benefits do not end here; a Colorado Living Trust, unlike Colorado Wills, makes it possible for your affairs and the affairs of your children to remain private. Furthermore, a properly drafted Colorado Living Trust can also include estate tax planning and provide tremendous asset protection.

Many people are under the misconception that they need a large estate to justify the use of a Living Trust as the foundation of their estate plan. As this guide demonstrates, a Colorado Living Trust can benefit families of all means.