Family Trusts In Colorado
If you own a business, a vacation home, a piece of land, a collection, or any other asset that you’d like to pass on to multiple family members, a family trust is a way to make that happen. A family trust allows you to privately transfer your assets to your family members, according to your exact wishes, and potentially without paying estate taxes.
What Is A Family Trust
A family trust is a legal arrangement, created to benefit your relatives. It’s a specific type of living trust, in which the beneficiaries are your family members (by blood, marriage, and/or adoption).
Protect Your Privacy With A Family Trust
A family trust enables you to avoid probate in Colorado, which can save time and money. By avoiding probate (which is a matter of public record), you’ll also be able to keep the terms of your trust private. No one, except your trustee, will know what assets (and debts) you had at the time of your death.
Avoid Paying Estate Taxes And Gift Taxes With A Family Trust
By transferring the ownership of assets through a family trust, you can also potentially avoid paying estate taxes and/or gift taxes.
Benefit From Other Tax Advantages With A Family Trust
You can also use a family trust to reduce your income tax liabilities. You can put assets into your family trust and then designate income-splitting from those assets among your family members, which could reduce the overall tax liability. A family trust could also reduce capital gains taxes.
Plan For Succession
If you have a family business, the business and all of its assets could be put into the family trust, allowing you to meticulously plan for succession. A well-crafted succession plan could help reduce familial bickering and ensure that the business will survive after your death.
How To Set Up A Family Trust In Colorado
Is a family trust the right estate planning option for you? Decisions about family trusts often come down to not only what assets you have, but also to your family dynamics. We can discuss your needs, your goals, and the best way to structure a family trust.
Give us a call or contact our Northglenn and Colorado Springs trust lawyers online today!