Frie, Arndt, Danborn & Thiessen P.C.

A living, or intervivos, trust may be revocable or irrevocable, and it may be funded or unfunded. A funded living trust is an alternative to a will and to probate. In a funded living trust, a person (the settlor) puts property and money into his/her trust during his/her lifetime for the benefit of him/her and possibly other family members. An unfunded living trust typically receives assets through a simple pour-over will following the settlors death.Most people who are able to handle their own financial affairs usually name themselves as trustee of revocable trusts they set up. The trustee invests the trust assets and makes the assets and income available to the settlor/beneficiary during his or her life. Such a trust is almost always revocable, meaning that the settlor can revoke or amend the trust so long as he or she is able.If the settlor/beneficiary becomes disabled, alternate trustees are usually named in the trust to assume trustee responsibilities, the most important of which is providing for the financial needs of the disabled settlor/beneficiary. A settlor will usually name a spouse, adult child, relative, friend or a bank as alternate trustees. When the settlor/beneficiary dies, the trust often terminates, and the successor trustee will distribute the trust property to the beneficiaries, as under a will. In many situations, however, living trusts will continue for the benefit of the settlors spouse and children.A living trust has several advantages if it is set up properly and fully-funded, meaning all the settlors assets are placed in trust. First, a fully-funded trust can reduce or eliminate the need for probate upon the death of the settlor. Second, a Colorado resident who owns real property in another state can put that real estate into a living trust and thereby reduce or eliminate the need for probate in the other state. Third, a living trust may avoid the need for a conservatorship for the settlor if he or she becomes legally disabled. However, a living trust cannot avoid a guardianship, because the trustee of a living trust cannot make medical or care decisions for the settlor unless the trustee is the named agent for the settlor under a separate Medical Power of Attorney. (See Chapter 6 for more information on guardianships and Health Care Powers of Attorney.)Many people think they need a fully-funded living trust so that probate is not necessary when they die. In some states, the probate process is cumbersome and costly, and it is thus desirable to avoid that process. In Colorado, however, probate is relatively simple and avoiding probate is not, by itself, a good reason to have a fully-funded, living trust.Trusts are complex legal documents that require the use of competent and experienced estate planning attorneys. Preparing and managing the trust can be more expensive in Colorado than a will and probate. If the trust is not drafted correctly, significant harmful tax results may occur. You should not try to create your own trust or purchase a preprinted living trust. Initially, living trusts and wills with testamentary trusts are more expensive to prepare than wills without trusts. However, they may save you many thousands of dollars if you have a complex estate. Bob Frie and Paul Danborn in our office would be more than happy to discuss with you if you would benefit from a Living Trust.  Please call our office to discuss this with them.

 Coping with the loss of a loved one is difficult. We hope this information will help you focus on what you need to do and what you may wish to delegate to friends and family. This brochure will provide you with some basic information on what you may need to know in the first few days following a death. You should establish an early relationship with your attorney to assure that all matters are properly addressed. Seeking your attorneys advice before you act may avoid more costly legal services later.Take Care against Unethical PersonsIn the period following the loss of a loved one, be careful before accepting any telephone or mail solicitation. Carefully scrutinize invoices for validity, as it is possible to receive fraudulent invoices. Avoid lifestyle changes for a period to allow for reflection on how the loss will affect the surviving family and friends.Avoid Immediate Collection of BenefitsAvoid transferring title to assets or making claims as a beneficiary until considering whether either a tax or non-tax reason exists for refusing to receive an asset. Even though the account executive wants to be helpful, you may lose an important tax advantage if you accept an asset. An attorney can help you find the best approach.Veterans Benefits and Social SecurityThe mortuary may assist you with the paperwork for both VA and Social Security benefits. For information on VA benefits, call the nearest VA listing for Benefits Information and Assistance.  For Social Security benefits, call the Social Security Administration immediately. Call (800) 772-1213. Be prepared to identify the deceaseds: relationship to you Social Security or VA claim number date of birth date of death place of death surviving spouse or next of kin medical history that bears on whether the death is service related or notIf you do not know the VA number, then provide: service number dates of active serviceYour call will stop the monthly payments. Usually, the VA will automatically withdraw any payments made via direct deposit after the date of death. If this does not happen, you must return the check for the month of death.Social Security monthly benefits are available to the surviving spouse and to children under 18 and certain disabled children. Benefits include a lump sum death benefit. Ask for the Social Security Survivors brochure.Veterans benefits may be available to the surviving spouse. Benefits may include a lump sum death benefit; if death was service connected, a continuing monthly payment to the surviving spouse, and financial assistance with funeral expenses and cemetery plot, or burial in a national cemetery.  Ask for the Federal Benefits for Veterans and Dependents publication.Our office has helped many grieving families and friends with the difficult matters that need to be handled after a loved one's death.  We understand the pain of the loss can make these matters extremely stressful and we try to assist in a way that alleviates some of the pressure.

Lately Ive met with several clients who have discouraging real estate problems. In almost every case, these problems could have been avoided by checking with a lawyer before a transaction was completed.Here are some examples of the types of cases Im talking about.I have met with several people who have gotten married later in life, typically a second or third marriage, but not always. It seems very logical when one takes this step to modify the way property is owned to reflect a willingness to share. For example, you might add your new spouses name to the title of a house youve lived in for a long time. However, this can be exceptionally depressing if the marriage ends in divorce. Colorado law is clear that if you do this, you have made a gift to the marriage of one-half of the equity in the home. This greatly increases the value of the recipient spouses share in the property.I have met with more than one young man who was in a romantic relationship with another, and they acquired real estate together. Sometimes at the last minute, the couple decided to put the property in the name of just one of the partners. There are always logical and seemingly compelling reasons to do this. Of course, there was no written agreement between the parties as to their agreement and their real ownership interests.When the romance ends, the property magically becomes the sole property of the record owner. Trying to claw your way onto the title is expensive and time-consuming and adds immeasurably to the heartbreak.One of my partners is deeply embroiled in a case where an older person is trying to undo a deed with which they vested a stepchild with an interest in real property to the detriment of his own children. Now, of course, the family is in an uproar and dad wants to undo the earlier transaction.  Hard to do.Refinancing poses its own hazards. Lots of times the lender or an underwriter requires modifying title to reflect what suits the lender. The results of such juggling may not always serve the client. I met with a woman whose name was on the deed to the house she owned with her husband for 23 years. They refinanced a couple of years ago and she mysteriously signed a Quit Claim deed giving away her interest in the property. What?Sometimes these nasty circumstances are discovered late, and require really urgent attention to fix, if they can be fixed.Of course, many of these cases would not be on my desk if the partners or lovers or spouses were people of integrity. But youd be surprised how often a person loses their integrity when there are several thousand dollars at stake.We urge you to treat any transaction affecting real estate as posing a threat to your individual financial well-being. Spending $300 or even less for a review by one of our attorneys will look so inexpensive when you compare it to spending thousands or even tens of thousands of dollars to try to right a wrong.