For the state of COLORADO: is a will alone enough to settle and estate or does and will and a living trust need to be in place?Situation: My father is termal he has less than 6 months to live. He has been divorced for 32 years I am his only child (living or dead). His estate, all assests, are wort about $250,000. he OWES NOTHING to any creditor (minus his utilities monthly).He is concerned that his 2 sisters and 2 brothers who are estranged (has not spoken or seen any of them in a number of yers) will try and seize his estate.Should he spend teh money and put everything in a trust, deed every over, or just allow his will to go through probate?This is causing him a great deal of stress so a simple answer would be greatly appricated.I am a memeber of legal shield.
State/Country relating to question: Colorado
books, advice from a friend who set up a trust and a lawyer who want $2500 to set up a trust. As well research on teh web into estate taxes, probate and trusts
What is the value of the real estate in the 250,000?
It has a tax value of about 180 but a real value of about 120.
It has a tax value of about 180 but a real value of about 120.Then the tax value should be appealed to reduce the property taxes. So he has about 125K in real estate and 125K in personal property. I don't see a trust being worth the expense. As to the house, he can gift you a 10% share with the right of survivorship. That will put him under the amount requiring a Federal gift tax return. As to any other accounts he can make them payable on death (POD) with you as the beneficiary. This will accomplish the same as a trust at minimal cost. That way everything will pass directly to you.
at what amount, then, does a trust become the more useful tool. If the federal estate tax requirement is 5 million and the state has no estate tax?
If we finish taking account of all his belongings and we find he has far more than 250K but still under 1 million???? and how doing what you suggest help with claims by any astranged family member?
The estranged family members have no grounds for any claims against his estate unless you pass first. Only children have standing as to claims against the estate. That can be handled in his will and/or your will. In my experience most attorneys recommend a trust when there is real estate in another state or a total estate of over 1M or there is a business involved.
Attorney with experience in wills, estates and trusts
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