Estate planning gives you the ability to control what happens to your assets and personal affairs after death or incapacity. In Colorado, two of the most commonly used legal tools are wills and living trusts. While both serve the purpose of passing assets to your beneficiaries, they function in very different ways.
Choosing the right instrument for your situation involves more than just filling out forms. At Reha Goodwin Caras, we help clients evaluate which structure aligns with their goals, family needs, and financial priorities. Understanding how wills and living trusts compare is the first step in building a reliable estate plan.
A will is a legal document that outlines your instructions for how your estate should be handled after your death. It allows you to name beneficiaries, select a personal representative, and appoint guardians for your minor children. If you die without a will, Colorado’s intestacy laws will determine how your assets are distributed.
One of the most important aspects of a will is that it must go through probate. This is a court-supervised process where the will is validated, debts are settled, and property is distributed. While Colorado’s probate system is more streamlined than in other states, it still involves public records, time delays, and costs.
Wills are generally easier and faster to draft, and they remain a valuable option for individuals with straightforward estates or families that do not anticipate legal challenges. They also work well when there is no immediate concern about privacy or probate.
A living trust, also known as a revocable trust, allows you to transfer ownership of your assets into a trust during your lifetime. You can act as trustee while you’re alive, retaining complete control of the assets. When you pass away, a successor trustee distributes the property according to your instructions.
The primary advantage of a living trust is that it avoids the probate process. This makes administration faster, less costly, and more private. Since court supervision isn’t required, your trustee can begin managing or distributing the assets without waiting for a judge’s approval.
Living trusts also provide continuity in the event of incapacity. If you become unable to manage your affairs, your successor trustee can step in without requiring a court-appointed conservator. This is especially important for individuals concerned about long-term care, medical decision-making, or mental decline.
For clients with more complex needs or substantial property in multiple states, our team often recommends a trust-based plan. A review of our practice areas can demonstrate how living trusts integrate into broader strategies, such as asset protection or business succession.
Your choice between a will and a living trust depends on the size and nature of your estate, your privacy preference, and how you want your affairs handled after death or incapacity.
A will may be sufficient if:
A living trust may be more appropriate if:
In some cases, both tools are used together. For example, a “pour-over” will can serve as a backup to a living trust, ensuring that any property not formally transferred into the trust is still directed to your intended beneficiaries.
Colorado has specific requirements for creating valid wills and trusts, including rules for execution, notice, and property distribution. A mistake in structure, funding, or documentation can cause delays, trigger probate proceedings, or result in unintended consequences.
Working with a qualified wills and trusts lawyer helps ensure that your estate plan reflects current law and accurately accounts for assets such as real estate, business interests, retirement accounts, and jointly owned property. Legal advice also helps address incapacity planning, tax exposure, and the titling of different asset types.
You can learn more about how we support clients with estate planning by visiting our attorney profile page, where you’ll find details on our approach to living trusts, wills, and long-term planning strategies.
The right estate planning tool should reduce stress for your family, preserve your intent, and limit court involvement. Wills and living trusts each offer distinct benefits, but they are applied differently depending on your goals.
At Reha Goodwin Caras, we work with individuals and families throughout Colorado to help them make informed decisions. Whether you’re starting fresh or revising outdated documents, a conversation with a trusted estate planning attorney can help clarify your next steps. For more information, contact our office to schedule a consultation with our team.
