Create a Living Trust in Colorado

A living trust allows you to avoid probate when you pass away. Probate can be time consuming and expensive. Find out more about probate and living trusts in Colorado.

Find out more about Living Trusts

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create a living trust in colorado

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Updated on: February 6, 2024
Read time: 4 min

A Colorado living trust, also called an inter vivos trust, allows the trustmaker to transfer ownership of personal assets into a trust during his life. The trustmaker continues to use the assets during his life (living in the home, driving the car, and spending the money). After death, the trust directs how the assets are distributed to the beneficiaries chosen by the trustmaker. A Colorado living trust provides many benefits and flexibility for estate planning purposes.

Living trusts in Colorado

One of the primary benefits of a living trust in Colorado is that it gives you complete control over your assets at all stages. You name a trustee, the person who will manage the assets. It can be anyone and many people name themselves (with a successor trustee in place for after your death). The trust directs that the assets be maintained and used for the trustmaker’s benefit during life by the trustee. They are then distributed to beneficiaries after the trustmaker’s death.

When you create a living trust in Colorado, it’s up to you to decide what to put in the trust, but generally adding as many asset as possible is the point. Note that you cannot place IRAs, 401(k)s or Keogh plans into a trust. A revocable living trust can be changed or ended by you at any time during your lifetime. An irrevocable living trust becomes permanent immediately.

A living trust passes assets outside of probate, reducing the time and expenses involved in handling an estate. However, Colorado uses the Uniform Probate Code so its probate process is considered to be streamlined. If your estate totals less than $50,000 at your death, you qualify for a simplified probate process, which may make a living trust unnecessary. Anyone who owns a home likely has an estate larger than this amount though. If you do not have a trust or a will, your assets are distributed according to Colorado intestacy statutes, which determine who gets your assets with no input from you.

Do I need a living trust in Colorado?

Living trusts are an option to consider as part of your estate plan. Many people prefer to use a trust because it allows complete control over assets. You can personally manage the assets during life and can set up any conditions or parameters you like for how they are distributed to your beneficiaries. For example, you can pass assets when beneficiaries reach specific ages or complete certain tasks. A trust allows you to have control beyond the grave. If you create a will, all of your assets are transferred to your beneficiaries as soon as probate concludes.

A living trust is an important tool during your later years as well. If you ever become mentally incapacitated, you have already placed your assets into the trust and your trustee manages them. Everything will continue to be managed in the same way and no court procedures are needed.

One of the primary reasons to use a trust is for the absolute privacy it creates. If you pass your assets via a will, it must go through a court procedure which is public record. Trusts are never made a part of public record so your assets and who you leave them to remain concealed. All terms of the trust are private.

Living trusts and estate taxes in Colorado

Most living trusts confer no protection from taxes. However, an AB trust, or marital trust (sometimes called a QTIP trust) is an exception. Although Colorado has no estate tax, federal law taxes estates in excess of $5.4 million. An AB trust moves assets from one spouse to the surviving spouse while avoiding all estate tax, even for an estate over the $5.4 million exemption. No living trust can protect assets from Medicaid statutes however.

How to create a living trust in Colorado

Once your trust document is prepared with all of the details and restrictions you have selected, you sign it in front of a notary public and it becomes effective. You must fund the trust by placing the ownership of your chosen assets in the trust’s name. Once this has been completed, the trust is operational.

Living trusts offer privacy, flexibility, and control of assets both during and after the trustmaker’s life. Creating a trust can offer peace of mind about the future.

Create a Colorado living trust online with LegalZoom. LegalZoom living trusts include a pour-over will, transfer deeds, a document organizer, and more.

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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

55 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
57 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
63 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
71 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
73 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
79 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
87 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
87 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
94 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
97 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
105 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
105 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
114 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
132 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
140 days ago
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Quality Staff

I needed to revise my entire living trust and had put it off for years. Your staff member Eden walked me through the process with such patience and concern. Had I known it would be so easy, I would have never put it off this long. A testament to you quality staff.

Ady Filipescu
149 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
155 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
155 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
162 days ago
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Enjoyed working with Kevin to finalize…

Enjoyed working with Kevin to finalize our Living Trust language. His knowledge on this product certainly increases our confidence in the viability of the final document.

JOHN in CALIFORNIA
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