Revocable Living Trust Attorney in Denver

How Revocable Living Trusts Work in Colorado

A living trust divides responsibility among three roles, although one person may fill more than one:

• Settlor: The person who creates and funds the trust. With a revocable living trust, the settlor retains control.
• Trustee: The person who manages the trust property. The settlor may serve as the initial trustee.
• Beneficiaries: The people or organizations that receive benefits according to the trust terms.

The Colorado Uniform Trust Code governs these trusts. For instruments signed on or after August 7, 2013, a Colorado trust is revocable by default unless its terms state that it’s irrevocable. A settlor may amend or revoke it using the method stated in the document or another method that provides clear and convincing evidence of that intent.

For Internal Revenue Service purposes, a revocable trust is generally treated as the same entity as the settlor, and its assets remain subject to the settlor’s personal taxation. We draw on our tax-law background to identify issues that should be considered alongside the trust documents.

Funding a Living Trust to Limit Probate in Denver

Assets transferred into a living trust during the settlor’s lifetime can be administered under its terms after death instead of through probate. Complete funding may reduce the property that must pass through the public probate process. Denver County probate matters are handled through Denver Probate Court.

Colorado also recognizes other probate-planning tools. Joint ownership and beneficiary designations may transfer certain property outside probate, depending on how the asset is owned and documented. We review these arrangements as part of the broader estate plan rather than treating the trust as a stand-alone document.

Whenever we create a revocable living trust, we also prepare a pour-over will. It directs property left outside the trust into it after death for management by the trustee. Because that property may still require probate before it transfers, the will supports the plan but doesn’t replace careful funding.

Limits on Creditor Protection

A revocable living trust isn’t a creditor-protection vehicle for the settlor’s lifetime debts. Under Colorado law, its property remains subject to the settlor’s creditors during life. The trust can support asset management and probate planning without shielding those assets from creditor claims.

Estate planning should account for current debts, ownership interests, support obligations, and pending legal matters. We consider related issues that may affect a client’s trust or assets:

• Property division orders
• Child support obligations
• Bankruptcy filings
• Criminal charges

This cross-disciplinary review identifies obligations or proceedings that may change how property can be transferred or managed.