Northglenn, CO estate planning & probate attorney Andrew St. Pierre talks the benefits of setting up a trust in Colorado. He explains that a trust functions much like a legal entity or shell, similar in structure to an LLC, but designed to serve different purposes. A trust can own assets, and in doing so, provide several important benefits. The type most commonly used in estate planning is the revocable living trust, sometimes referred to as a family trust, land trust, or by other names across the United States. Regardless of the terminology, revocable living trusts are used in estate planning approximately 90 percent of the time nationwide.

The key feature of a revocable trust is its flexibility. Because it is not irrevocable, the creator of the trust maintains complete control. He emphasizes to clients that when they come to his office to review and sign their trust, whatever control they had upon arrival, they retain when they leave. They may amend the trust, add or remove assets, restate it entirely, or even dissolve it if they choose.

In practice, when a revocable living trust is created, the individual—or in the case of a couple, the spouses—typically serve as the trustees. While alive, they maintain full authority over the assets placed in the trust. The trust serves two primary purposes: it avoids probate, and it can remain in existence long after the original trustees pass away, allowing inheritance to be distributed according to specific instructions.

One of the most common reasons property ends up in probate is real estate. Without proactive planning, a house, land, or mineral rights must go through the court system before transferring to heirs. By deeding real property into a trust, ownership is legally vested in the trust rather than the individual. While this may initially feel unsettling, the trustee continues to control the trust and its assets during their lifetime. For example, instead of a home being titled in his individual name, it could be titled under the “St. Pierre Family Trust.” Although legally owned by the trust, he, as trustee, maintains full authority to use, sell, or transfer the property. Upon death, the property avoids probate because it is already held by the trust, which continues to exist after the original trustee’s passing.

At that stage, the trust becomes irrevocable, and the successor trustees—chosen by the original trustees—step in to administer the trust. These successor trustees cannot change its terms but are obligated to carry out the instructions provided. For instance, they may deed a house to a beneficiary or sell it and distribute proceeds according to the directions set forth in the trust.

He identifies three common reasons clients establish revocable living trusts. The first involves ownership of real property, particularly property in multiple states. Without a trust, an individual owning real estate across state lines could leave heirs facing multiple probate proceedings simultaneously. By consolidating property into a single trust, even assets in different states avoid probate, simplifying administration significantly.

The second, and most common reason, is to provide for minor children. Because minors cannot legally inherit property in any state, leaving assets to children through a simple will or without any estate plan often leads to complications. In such cases, the court must appoint a conservator to manage the children’s inheritance, which can be costly, time-consuming, and unpredictable. The conservator may be a stranger to the family, or even an attorney whose fees are paid from the estate. Over time, these expenses can significantly deplete the inheritance.

By contrast, a trust allows parents to designate a trusted individual as successor trustee, someone who knows and cares for the children. The parents also establish the terms of how and when the inheritance should be used, ensuring resources benefit the children directly. While not perfect, this approach provides far greater control and protection compared to leaving the decision in the hands of the court.

The third reason builds upon this concern by addressing how young adults handle inheritances. He notes that many parents hesitate to provide a large lump sum to a beneficiary at age 18 or 21, recognizing that financial maturity often comes later. Trusts allow for structured distributions, such as releasing one-third of the inheritance at age 25, another third at age 30, and the remainder at 35. This staggered approach helps protect assets from impulsive spending while still ensuring long-term financial support.

In addition, trusts often incorporate what is known as the “HEMS” standard—Health, Education, Maintenance, and Support. This provision authorizes trustees to use trust funds for essential needs such as medical expenses, tuition, housing, and living costs. Beneficiaries are therefore cared for, but without unrestricted access to the full inheritance until they reach a more appropriate age.

Ultimately, he emphasizes that while no estate plan is perfect, revocable living trusts offer significant advantages. They provide flexibility during the grantor’s lifetime, avoid probate, protect minor children, and safeguard young beneficiaries from the risks of receiving an inheritance too early. For many families, these features deliver both practical benefits and invaluable peace of mind.