Denver Trust Attorneys

Trusts, Explained

A trust is a legal entity created by an individual. This person is known as the settlor. The settlor creates and funds the trust with assets and then directs the trust to accomplish certain goals or objectives with those assets. Frequently, the goal of a trust is simply to provide for the needs of the settlor and their family.

Trusts are a favored estate planning device among those who wish to avoid probate. Because the trust can outlive the settlor, any assets owned by the trust are not subject to probate in most cases.

Decisions regarding how the trust’s assets are handled are made by the trustee. Sometimes, the settlor will act as the trustee. Other times, the settlor will appoint another person or entity to act as trustee. In any case, the trustee’s job is to make wise and informed decisions about how to manage the trust’s assets to best accomplish the trust’s goals.

Special Needs Trusts

A special needs trust is a trust created on behalf of someone who is receiving government benefits. For some programs like Supplemental Security Income (SSI), continued receipt of benefits depends on the beneficiary’s income and assets. A special needs trust allows assets to be kept and used on behalf of the beneficiary without threatening their income from the government.

A lawyer’s assistance in setting up a special needs trust is highly recommended. Specific requirements must be met before a special needs trust can legally be formed. Our attorneys can help you decide whether a special needs trust is right for your family’s situation and walk you through the process of setting one up.