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Colorado Living Trust Form – Irrevocable & Revocable

The Colorado living trust is a document that an individual may use to negate the State’s probate process. The Grantor (creator of the Trust) will place his or her personal assets in the Trust and nominate a Beneficiary, or Beneficiaries to receive said assets. When the Grantor passes away, the items listed within the Trust will be immediately distributed to the Beneficiary. The Grantor will also be required, upon the creation of the trust, to elect a Trustee to manage their assets during their lifetime and after their death. In the case of Revocable Trust, the Grantor can elect themselves as Trustee. Alternatively, the Grantor may relinquish all power of their assets, and potential income, by establishing an Irrevocable Trust. Each type will allow the Beneficiary to bypass the probate process.

LawsTitle 15, Article 16 (Trust Administration)

Registration (§ 15-16-101) – Only required for Irrevocable Trusts. The Registration Statement (JDF 732) must be filed with the District Court of the Trustee.

Will (Last Will and Testament) – Used to designate all assets not mentioned in the Living Trust. All property in a Will is subject to the probate process.

Types

Irrevocable – The provisions established within an Irrevocable Trust cannot be altered after it has been created. This type of Trust allows the Grantor to avoid estate tax and protects their assets from creditors.

Revocable – A Trust that can be edited at any point during the Grantor’s lifetime. The Grantor is often the same person as the Trustee.

Individual Roles

Within the structure of a Living Trust, there are four (4) major roles:

Grantor (or “Settlor”) – Initial creator of the Trust and owner of the assets to be distributed to the Beneficiaries.

Trustee – Person managing the assets within the trust. The Trustee will distribute the assets to the Beneficiaries upon death of the Grantor. In a Revocable Trust, the Grantor may also act as the Trustee.

Successor Trustee – The Successor Trustee will act on behalf of the Trustee should he/she become incapacitated or otherwise unable to handle the Grantor’s affairs.

Beneficiaries – Individual(s) who will benefit from the assets placed within the Living Trust.

How to Make a Living Trust in Colorado

There are no set laws on the requirements for Living Trusts in Colorado other than spelling out the powers of the relevant parties (Grantor, Trustee, and Beneficiary) and listing the assets which are to be transferred to the trust for the benefit of the Beneficiaries. In order to create a Trust that is binding, it is recommended to have the document be fully completed and signed with the Grantor and Trustee in the presence of a Notary Public.

If it is an Irrevocable Trust, the document will need to be authorized and registered in accordance with § 15-16-101 by completing the Registration Statement (JDF 732) and filing with the Local District Court of the Trustee.

Motor Vehicles – If a vehicle is to be placed in trust, a Statement for Certificate of Title (Form DR 2170) must be completed and returned to a DMV Location.

Real Estate – A Colorado Deed should be filed when transferring real estate to a Trust. The form must be notarized and filed with the County Recorder’s Office.

Websites – The Grantor must alter their settings with the company hosting their domain (e.g GoDaddy) so that the listed information is in the name of the trust.

Do I Need a Living Trust?

Under C.R.S. 15-12-1201, if the value of an individual’s estate is less than sixty-four thousand dollars ($64,000), there may not be a sufficient reason to create a Trust. With a Small Estate Affidavit, the heirs of the estate may be able to bypass the probate process when it comes time to distribute assets and property. If an individual wishes to spell out specific provisions in regards to their Beneficiaries, it is recommended that a Living Trust be created; without a trust, the heirs will receive equal ownership of assets and property.

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