Estate planning is one of the most important steps in securing your family's financial future, and a family trust is a powerful tool to help you do just that. Whether you want to protect your assets, ensure smooth wealth transfer, or avoid probate, a family trust can be a game-changer.
Let’s dive into why setting up a family trust matters, who can benefit from it, and what you need to know before getting started.
What is a Family Trust & Its Primary Function?
A family trust is a legal entity that holds your assets on behalf of your beneficiaries, managed by a designated trustee. Its primary function is to:
✅ Protect assets from lawsuits, creditors, or potential financial mismanagement
✅ Ensure smooth asset transfer to heirs without going through probate
✅ Provide financial security for children, dependents, or family members
✅ Control how and when assets are distributed after your passing
✅ Minimize estate taxes and legal fees in some cases
Unlike a will, which only takes effect after death, a family trust can be revocable or irrevocable and can begin working immediately or at a future date.
Who Can Benefit from a Family Trust?
Setting up a family trust is beneficial for many people, particularly those who:
✔️ Own real estate or significant assets
✔️ Have minor children or dependents who need financial protection
✔️ Want to avoid the probate process, which can be costly and time-consuming
✔️ Own a business and need a structured succession plan
✔️ Have multiple heirs and want to prevent potential disputes
✔️ Want to maintain privacy, as trusts are not part of public records like wills
For Colorado Springs homeowners, a trust can be especially useful in ensuring that your property and investments stay within your family and are handled according to your wishes.
What Can You Put in a Family Trust?
You can place almost any valuable asset in a trust, including:
🏡 Real estate and property
💰 Savings, stocks, and bonds
📜 Life insurance policies
🚗 Vehicles, including classic cars
🏢 Business interests
🎨 Personal valuables and collectibles
However, some retirement accounts (like 401(k)s) generally should not be placed directly into a trust, but you can name the trust as a beneficiary instead.
Who Can Assist You in Setting Up a Family Trust?
Creating a family trust requires careful planning and legal expertise. You’ll want to work with:
✔️ An estate planning attorney to draft the trust and ensure it aligns with state laws
✔️ A financial advisor to structure asset distribution in a tax-efficient manner
✔️ A trustee (individual or professional) who will manage the trust according to your wishes
If you're in Colorado Springs, CO, some well-respected estate planning attorneys who can help include:
1️⃣ Hammond Law Group – Specializing in estate planning & asset protection
📍 https://coloradoestateplan.com
📞 (719) 520-1474
2️⃣ Legacy Law Group – Focused on trusts, wills & elder law
📍 https://legacylawllc.com
📞 (719) 330-3125
3️⃣ Andersen Law PC – Offers comprehensive estate planning
📍 https://www.andersenlawpc.com
📞 (719) 900-4888
These professionals can guide you through the process and help you make informed decisions.
How Much Does It Cost to Set Up a Family Trust?
The cost of setting up a trust depends on the complexity of your estate and the attorney’s fees. On average:
💰 Basic trust setup: $1,500 - $3,000
💰 Complex estate planning: $3,000 - $6,000+
💰 DIY online trusts: $300 - $1,000 (not always recommended for complex estates)
Some attorneys offer flat fees, while others charge hourly rates ($250-$500 per hour). It's worth investing in professional guidance to avoid mistakes that could cause issues later.
Are There Ongoing Costs Associated with a Trust?
In general, once a trust is established, there are minimal ongoing costs. However, some situations require continued expenses, such as:
✔️ Hiring a professional trustee (if you don’t appoint a family member)
✔️ Tax filings for irrevocable trusts
✔️ Trust management fees, if assets are professionally handled
If you set up a revocable trust, you can modify it at any time without significant costs. But if it's an irrevocable trust, changes are far more complicated.
Why a Family Trust is a Great Tool for Estate Planning
A well-structured family trust eliminates uncertainty, reduces legal fees, and ensures your loved ones are taken care of according to your wishes. If you own real estate in Colorado Springs, it can also help protect your home from probate and provide clear direction for future ownership.
By working with an experienced estate planning attorney, you can customize your trust to fit your needs, ensuring peace of mind for you and your family.
Ready to Secure Your Family's Future? Let’s Talk!
📩 Email: [email protected]
📞 Call/Text: 719-922-0102
🌐 Website: www.NicoleStromRealtor.com
Let’s make sure your home and investments are secured for generations to come! 🏡✨
Follow Me for More Real Estate & Planning Tips!
🔗 LinkedIn: https://www.linkedin.com/in/nicolestromrealtor/
📸 Instagram: https://www.instagram.com/nicole_strom_realtor/
📘 Facebook: https://www.facebook.com/Colorado.Springs.REALTOR.Military
🎥 YouTube: https://www.youtube.com/channel/UCohPtBrINuizMZT_mTPx9rg
About the Author
Nicole Strom
Nicole is a retired military spouse of over 25 years, as well as a full time Real Estate Professional serving her clients in and around Colorado Springs.
You need a REALTOR® with vast experience and knowledge of our specific market. You need a REALTOR® that genuinely cares about you and puts your needs first. You need a REALTOR® you can trust. Nicole is that REALTOR®.
