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By John Stege, Denver Estate Planning Attorney

  303-945-4606

A will is a written document that decides who gets your  assets after your death. Not all wills contain trusts. A trust can be created either in a will or separately to make payments on behalf of someone who is too young, too old or too disabled to handle these assets responsibly.

 

 

Examples: Do you own your own home? Do you know that if you died without a will in Colorado, your children would inherit everything you own, including the house, at the age of 18? Is that too young? With a properly drafted will, your assets could be placed in a trust for your children, who could then be protected from being given a large sum of money when they are too inexperienced to handle the money! This is called a contingent trust: It’s created in your will or in a Trust Agreement but comes into effect only if your heir needs the trust at the time of your death.

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How this works: in practice: Let’s say your child or grandchild inherited your estate at age 18. Language contained in your will could establish a trust to handle the money until he or she was 25. But, if your child was 26 at your death, then they could get the inheritance outright because they’re old enough to handle it in your view. If a spouse or heir became disabled, the Trustee could make payments on their behalf.

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There are lots of different types of Trusts, each one for a different situation. Some of the different types will be explored in further articles.

There’s a lot more law to this, but if you have any questions about Wills versus Trusts you can call me at 303-945-4606. Or check out my web-site with more information: www.compassionatelawyer.com/estate-planning As an attorney with 27 years experience in business and estate planning law I can help with many questions about wills, trusts and estate planning. Call any time and I can answer your questions for free. 303-945-4606.