If you’re starting to think about estate planning, you’ve probably heard the term “living trust” and wondered: Is this something I need, or will a simple will cover everything?
It’s a smart question. A living trust can be an incredibly useful tool, but it’s not always necessary or appropriate for every family or every estate. At Jones Law Firm, I help clients across Colorado weigh the benefits of trust-based estate plans versus will-based estate plans so they can create estate strategies that truly fit their lives.
My goal is to take the guesswork out of estate planning. Let’s walk through what a living trust actually is, how it works in Colorado, and how to know whether it might be right for you.
What Exactly Is a Living Trust?
A living trust (often called a revocable trust) is a legal arrangement that allows you to place your assets into a trust during your lifetime.
Think of it like a personal vault you control:
- You can put assets in or take them out.
- You stay in charge while you’re alive.
- You can change your mind or even dissolve the trust at any time.
When you pass away, the assets in the trust are distributed directly to your beneficiaries, without going through probate.
What this means for you: A living trust offers privacy, efficiency, and flexibility, but it requires some upfront work to set up and maintain.
How a Living Trust Works in Colorado
In Colorado, a living trust is valid only if it’s properly funded, meaning your assets are legally transferred into it. This step is critical. Without funding, the trust is essentially an empty container.
Typical assets that can be transferred into a trust:
- Real estate (your home, rental properties, or vacation homes)
- Bank and investment accounts
- Valuable personal property (jewelry, art, heirlooms)
- Business interests
We’ll help ensure the trust is fully funded with the appropriate transfers, and be on your side each step of the way with any questions or concerns.
You’ll also name a successor trustee, someone who can step in to manage the trust if you become incapacitated or after your death.
Living Trust vs. Will: Key Differences
Both wills and trusts are estate planning tools, but they serve different purposes. Here’s a simple breakdown:
| Feature | Will | Living Trust (Revocable) |
| Control | Only takes effect after death | Effective during life + after death |
| Probate | Required (public process) | Avoids probate (private, faster) |
| Incapacity | No management until court steps in | Successor trustee can manage immediately |
| Cost/Complexity | Cheaper, easier to draft | More costly, requires funding & upkeep |
What this means for you: Wills are often enough for smaller estates. Trusts add efficiency and privacy, especially for families with more assets, property in multiple states, or unique circumstances.
When a Living Trust Makes Sense in Colorado
You might consider a trust if you:
- Want to avoid probate and keep your estate matters private
- Own property in more than one state
- Have a blended family or complex inheritance wishes
- Want a plan for seamless management if you become incapacitated
On the other hand, if your estate is modest and your wishes are straightforward, a will may be sufficient.
Common Misconceptions About Trusts
❌“Trusts are only for the wealthy.”
Trusts can benefit many middle-class families too.
❌“If I have a trust, I don’t need a will.”
You still need a will to cover anything not placed into the trust.
❌“Trusts reduce estate taxes.”
A revocable trust doesn’t change tax obligations, but it simplifies administration.
Other Tools That Work Alongside Trusts
A living trust isn’t the only piece of an estate plan. As a part of your trust estate plan package, we would also prepare for you:
- Powers of Attorney for financial and medical decisions
- Advance Healthcare Directives to guide medical care if incapacitated
- Pour-over Will to catch any assets not transferred into the trust
What this means for you: A trust works best as part of a larger, coordinated plan—not as a stand-alone document.
Why Choose Jones Law Firm for Estate Planning in Colorado?
- We know Colorado probate rules and how to structure trusts correctly.
- Every plan we draft is tailored to the client’s assets, family dynamics, and long-term goals.
- We explain complex documents in plain English, so you never leave our office feeling uncertain.
For me, estate planning isn’t about documents, it’s about peace of mind. My goal is for clients to feel like they’ve lifted a weight off their shoulders once their plan is complete.
Thinking about whether a living trust is right for you? The attorneys at Jones Law Firm can help you evaluate your estate and design a plan that protects your family and legacy.Contact us to schedule a confidential consultation. Take that first, empowering step to protect your family’s future, starting right now.
