Charitable Remainder Trust

Charitable remainder trusts are estate planning tools that can be effective in reducing certain tax obligations while still providing the beneficiaries of the trust with some specific assets.

At Colorado Estate Matters, Ltd., our Denver estate planning lawyer are experienced at assisting people in the creation and administration of charitable remainder trusts in order to protect their assets and their loved ones while minimizing their future potential costs and stresses, particularly when it comes to tax responsibilities. Give us a call to learn more at (303) 713-9147, or contact us online.

How Does A Charitable Remainder Trust Work?

Also sometimes referred to as split-interest trusts, charitable remainder trusts are set up to:

Grant a certain percentage or portion of the trust’s assets to a non-charitable party (like, for instance, a trust maker’s spouse, child or other loved one)
Stop distributing the trust’s assets to this beneficiary after a certain period of time (such as, for example, after 10 years, after the beneficiary reaches a certain age or even after the beneficiary passes away)
Give the remainder of the trust’s assets to one or more chosen charities
Provide certain tax breaks to the assets of the trusts to preserve these assets for the chosen beneficiaries (i.e., the non-charitable beneficiary, as well as the chosen charities).

It’s important to point out that, when it comes to a charitable remainder trust:

The term of these trusts may extend for the duration of a beneficiary’s life or for fixed periods of up to 20 years.
There are some essential setup and ongoing maintenance costs to plan for and consider.
Capital tax gains can be eliminated for gifts of long-term appreciated securities.
In order to fully benefit from the available federal tax deduction, these trusts must be set up and administered according to some very strict terms.

Denver Trust Attorneys at Colorado Estate Matters, Ltd.

If you are considering developing a charitable remainder trust or any type of trust, contact the trust lawyers at Colorado Estate Matters, Ltd.. We provide a thoughtful, comprehensive approach to our clients’ estate planning and elder law needs, and we are dedicated to helping each of our clients and their families find the best solutions for them.

While this means that we provide our clients with the personalized attention they deserve, it also means that our clients can rely on our Denver trust attorneys to always provide them with competent, caring and professional representation while providing them with the highest quality of estate planning legal services at affordable rates.

Our goal is to help our clients efficiently navigate the complexities of the law so they can develop effective, prudent solutions that will protect them, their assets and their families in the future.

Contact Us

The Denver trust attorneys at Colorado Estate Matters, Ltd. are experienced at helping people develop a charitable remainder trust that can minimize their tax obligations. Let’s discuss your options during an initial consultation. To schedule this meeting, call us at (303) 713-9147 or email us using our convenient online contact form.

From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village, and Englewood.

What is probate in Colorado?

Probate in Colorado is the legal process by which a deceased person’s assets are distributed and their debts are paid under court supervision.

When is probate necessary in Colorado?

Probate is typically required when a person dies with assets solely in their name, and those assets exceed a certain value, or there’s any real estate. The threshold amount changes over time, so checking the current limits is essential.

How do I start the probate process in Colorado?

To initiate probate in Colorado, you need to determine if formal probate is required, and then file an Application or a Petition (as well as the necessary ancillary documents) with the appropriate court, depending on the circumstances.

What assets are subject to probate in Colorado?

Generally, assets that are solely owned by the deceased, such as real estate, bank accounts, and personal property, are subject to probate. Jointly owned assets with rights of survivorship, assets held in a trust, and assets with designated beneficiaries typically bypass probate.

How long does the probate process take in Colorado?

The duration of probate in Colorado can vary depending on the complexity of the estate and any disputes that may arise. Often it takes a year or more to complete.

What are the costs associated with probate in Colorado?

Probate costs in Colorado can include court fees, attorney fees, personal representative fees, and other administrative expenses. These costs can vary based on the size and complexity of the estate.

Can I avoid probate in Colorado?

Yes, there are strategies to avoid probate in Colorado, such as creating a revocable living trust, using beneficiary designations on assets like life insurance policies and retirement accounts, and jointly owning property with rights of survivorship.

What are the rights and responsibilities of a personal representative in Colorado?

The personal representative (executor or administrator) is responsible for managing the estate, paying certain debts and taxes, and distributing assets to beneficiaries in accordance with the law and the deceased person’s will (if one exists).

How are disputes handled in Colorado probate cases?

Disputes in Colorado probate cases can be resolved through mediation, negotiation, or litigation in court if necessary. Common disputes may involve the validity of the will, claims by creditors, or disagreements among beneficiaries.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.
It’s essential to consult with an attorney or legal professional experienced in Colorado probate law to get accurate and up-to-date information and guidance on your probate matter.

Charitable Remainder Trust

How Does A Charitable Remainder Trust Work?

Denver Trust Attorneys at Colorado Estate Matters, Ltd.

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