A Colorado Will Versus a Colorado Living Trust

A Colorado Will is any written document in which the maker states his or her intention to devise or bequeath his or her real or personal property at death. The important features of a will are as follows:

• A Colorado Will takes effect only at the maker's death;
• A Colorado Will affects only assets which are owned by the maker alone and which do not pass to others by the operation of law or by contract (joint tenancies and beneficiary designations).

There are many advantages and disadvantages to planning your estate with a Colorado Will. Whether the advantages outweigh the disadvantages is based on many personal factors:

• Size and complexity of your estate;
• Degree to which you want to ensure that your assets will, in fact, be transferred to the individuals you choose in the manner you choose;
• Value you place on privacy; and
• Importance of minimizing taxes, costs and attorney's fees.

While a Colorado Will may meet most of your estate planning goals, a Will is only effective on your death and cannot provide for you if you are mentally or physically unable to take care of yourself. Even for people who do not have taxable estates, a Colorado Living Trust is a far better planning vehicle because it provides the following benefits that a Will does not:

• Avoids a Living Probate. If you become disabled or are unable to manage your financial affairs, your Colorado Living Trust can eliminate the need for a court-appointed Guardian or Conservator to take control of your assets. If you have transferred all of your assets to your Living Trust, it will control how those assets are managed during your incompetency.
• Avoids Death Probate. Your assets can go directly to your beneficiaries after your death without court interference.
• Is Valid In Every State. The laws of every state recognize the validity of a Living Trust.
• Discourages Attack by Discontented Heirs. A Colorado Living Trust is not part of the public probate process, which invites and encourages disputes. It is also not governed by the archaic and complex rules surrounding a Will. These features make a Living Trust less prone to successful attack by dissatisfied heirs.
• Avoids Probate In Multiple States. If you own real estate in multiple states, you can avoid the "ancillary" probate proceedings in each state as long as your real estate is titled in the name of your living trust.
• Is Private. One of the most important benefits of a Revocable Living Trust is the privacy it offers to surviving family members: it does not subject the family's financial affairs to the public probate process as a Will can.

These are just a few examples of the goals you can achieve with a Colorado Living Trust. When you remain mindful of the real priorities in estate planning, you will unlikely choose a planning vehicle solely on the basis of the size of your estate, your marital status, or your age. Rather, you will choose the vehicle that operates best to meet your goals and objectives.