Fort Collins Trust Lawyer | Trust Attorney for Estate Planning

Protect Your Assets and Your Loved Ones with a Trust

A trust is a powerful tool that allows individuals to protect their assets, ensure smooth distribution to beneficiaries, and potentially avoid probate. In Fort Collins, CO, where the median home value is approximately $550,000 and many residents own businesses or investment properties, estate planning is crucial to safeguarding wealth and minimizing legal complexities. A well-structured trust can help reduce estate taxes, protect assets from creditors, and ensure your loved ones receive their inheritance without delays.

As experienced Fort Collins trust attorneys, we work closely with individuals and families to create customized trusts that align with their estate planning goals. Whether you need a revocable trust for flexibility, an irrevocable trust for asset protection, or a special needs trust to provide long-term care for a loved one, we can guide you through the process.

Call us today at (970) 893-8857 to discuss how a trust can help you secure your estate, provide for your family, and achieve long-term financial peace of mind.

What is a Trust?

A trust is a legal arrangement that allows a designated trustee to manage and distribute assets on behalf of beneficiaries according to specific instructions. Trusts can be used to avoid probate, protect assets from creditors and legal claims, control how and when assets are distributed to beneficiaries, and minimize estate taxes, depending on the type of trust.

Unlike a will, which only takes effect after your passing, certain trusts can provide benefits during your lifetime while still ensuring long-term protection for your estate.

What Types of Trusts Are Available In Colorado?

Revocable Living Trust

A revocable living trust allows you to maintain control over your assets during your lifetime while providing a clear plan for distribution after your passing. You can modify or revoke the trust at any time.

Some benefits of a revocable living trust include avoiding probate, ensuring a faster asset transfer, keeping estate matters private, and providing continuity of asset management if you become incapacitated.

Irrevocable Trust

An irrevocable trust cannot be altered once created, but it offers significant asset protection and tax benefits. Common uses for an irrevocable trust include protecting assets from creditors and lawsuits, reducing estate taxes by removing assets from the taxable estate, and ensuring long-term financial stability for beneficiaries.

Special Needs Trust

A special needs trust (SNT) is a legal arrangement designed to provide financial support for a person with disabilities without jeopardizing their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). This type of trust ensures that funds can be used for the beneficiary’s well-being while preserving access to essential public assistance programs.

A special needs trust holds assets for the benefit of a person with disabilities while being managed by a trustee, who distributes funds according to the trust’s terms. Since the assets belong to the trust and not the individual, they do not count toward income or resource limits for government aid.

The trust can cover expenses such as:

• Medical and dental care not covered by Medicaid
• Personal care attendants
• Therapy and rehabilitation services
• Housing and transportation
• Educational programs and vocational training
• Recreational activities and travel

Boutique trusts

A boutique trust is a popular type of trust tailored to protect a specific type of asset. Common boutique trusts are Delaware statutory trusts (DSTs), real estate trusts, or conservation easement trusts.

Gun trusts

Our trust attorneys can assist you with creating a gun trust that can manage your firearms in compliance with both state and federal law. Both possession and transfer of firearms are key concerns every gun owner should consider – our comprehensive planning ensures you have the education and resources you need to plan with your firearms in mind.

Charitable Trust

A charitable trust allows you to leave assets to a nonprofit organization or charity while also providing potential tax advantages.

A charitable trust transfers assets—such as cash, real estate, stocks, or other investments—into a trust that is managed by a trustee. Depending on the type of trust, the assets can provide income to beneficiaries before ultimately going to a charity, or they can benefit a charity first before passing to heirs.

Types of Charitable Trusts

• Charitable Remainder Trust (CRT)
  • Provides income to a designated beneficiary (such as the donor or their family) for a set period.
  • After the term ends, the remaining assets are donated to a charitable organization.
  • Offers tax deductions and potential avoidance of capital gains tax on appreciated assets.

• Charitable Lead Trust (CLT)
  • Provides income to a charity first for a set number of years.
  • After the term ends, the remaining assets pass to the donor’s heirs or other beneficiaries.
  • Can reduce estate and gift taxes for high-net-worth individuals.

Asset Protection Trust

An asset protection trust shields assets from lawsuits, creditors, and financial risks, making it a popular choice for individuals in high-liability professions or those with significant wealth.

Testamentary Trust

A testamentary trust is created through a will and only goes into effect after your passing. It can help control how assets are distributed to minor children or beneficiaries who may need financial oversight.

Common Questions About Trusts in Colorado

Do I need a trust if I have a will?

A will and a trust serve different purposes, and while a will is essential for estate planning, a trust can provide additional benefits that a will alone cannot. Whether you need a trust in addition to a will depends on your specific financial situation, estate planning goals, and whether you want to avoid probate or provide long-term asset protection.

Key Differences Between a Will and a Trust

Every estate is different, and the best way to determine whether you need a trust in addition to a will is to consult with an estate planning attorney. At Anzen Legal Group, we help clients develop estate plans that protect their assets and ensure their wishes are honored.

Does a Trust Avoid Probate in Colorado?

Yes, assets placed in a revocable living trust can bypass probate, ensuring faster distribution to beneficiaries. However, assets outside the trust may still go through probate.

Can I Make Changes to My Trust?

Yes, but whether you can modify your trust depends on its type. A revocable trust can be changed at any time while you are alive and mentally competent. You can add or remove beneficiaries, update trustees, or change how assets are distributed. Changes are made through an amendment or a restatement of the trust.

An irrevocable trust is more restrictive, but certain modifications may be possible through court approval, beneficiary consent, or trust decanting (transferring assets into a new trust). Common reasons to update a trust include major life changes, acquiring new assets, or changes in estate laws.

If you need to modify your trust, working with a trust attorney ensures the changes are legally valid. Call Anzen Legal Group at (970) 893-8857 to review and update your trust today.

What Happens to a Trust if I Become Incapacitated?

A successor trustee, someone you designate in advance, will step in to manage your trust assets according to your instructions. This prevents the need for court-appointed guardianship.

Will a Trust Protect My Assets from Creditors?

Yes, but only irrevocable trusts provide strong protection against creditors, lawsuits, and financial claims. Once assets are placed in an irrevocable trust, they are no longer considered part of your estate, meaning creditors cannot seize them. Common types include asset protection trusts, Medicaid asset protection trusts (MAPTs), and irrevocable life insurance trusts (ILITs), all designed to safeguard wealth and reduce estate tax exposure.

Revocable trusts, however, do not offer creditor protection because the grantor retains full control over assets, making them legally accessible in lawsuits, divorce settlements, or debt claims. If asset protection is a priority, setting up the right trust structure is crucial. Call Anzen Legal Group at (970) 893-8857 to speak with a Fort Collins trust attorney and explore the best options for protecting your wealth.

Can a Trust Reduce Estate Taxes?

Yes, certain types of trusts can help minimize or even eliminate estate taxes by strategically removing assets from your taxable estate. While revocable trusts do not provide tax benefits, irrevocable trusts and charitable trusts can significantly reduce tax liabilities for high-net-worth individuals and families.

How Trusts Help Lower Estate Taxes

• Irrevocable Trusts – Assets placed in an irrevocable trust are no longer considered part of your taxable estate, reducing potential estate tax exposure. These trusts can also protect assets from creditors and lawsuits.
• Charitable Trusts – A charitable remainder trust (CRT) or charitable lead trust (CLT) allows you to support a nonprofit organization while receiving tax deductions and reducing your estate’s taxable value.
• Grantor Retained Annuity Trusts (GRATs) – These trusts allow you to transfer assets while receiving an annuity payment, reducing gift and estate taxes on future asset appreciation.
• Generation-Skipping Trusts (GSTs) – This trust structure helps transfer wealth to grandchildren or future generations while minimizing estate tax burdens at each level of inheritance.

Using a trust for estate tax planning requires careful structuring to ensure compliance with tax laws while maximizing financial benefits. If you’re looking for ways to protect your wealth and minimize tax liabilities, we can help. As experienced Fort Collins trust attorneys, we can help you create a strategic estate plan that reduces taxes and secures your legacy.

Why Work with Anzen Legal Group?

Estate planning is about more than just documents—it’s about ensuring that your family, assets, and legacy are protected for years to come. At Anzen Legal Group, we provide customized trust solutions tailored to your needs, guidance on choosing the right type of trust for your situation, and legal protection for your assets and financial future.

Call us today at (970) 893-8857 to schedule a consultation with a Fort Collins trust lawyer and take control of your estate planning.