Colorado Estate Planning And Estate Settlement Legal Blog

You may not be the wealthiest person on the planet (to be serious, few people are), but that doesn't mean that you shouldn't protect what you do have. A trust is a great way to do that.

Some people believe that trusts are something for the wealthy and well-to-do, but the truth is that a trust can be a good choice for anyone with any assets to protect. Even if your only asset is going to be life insurance, that is enough to consider setting up a trust to receive those funds.

Trusts are one of the most essential estate planning tools in use today, and there are many kinds of trusts to choose from when considering your options. However, no matter what type of trust you use, they all must come to an end one way or another.

If you've done much research into estate planning, you know that there are a wide variety of trusts that offer different advantages and restrictions, but you may not have a clear picture of how a trust ends. Of course, all trusts do end. The important part when creating a trust and considering when it will terminate is making sure to plan for the ending just as one plans other aspects, like creation and payout of assets.

When you think about a trust, you probably think about million dollar accounts for wealthy individuals. The reality is that most trusts aren't for the rich and famous but rather for people of lower incomes. Trusts can be beneficial for people of all backgrounds, even if they only have a few thousand dollars.

One thing you may not have known is that you can open a trust with little to no assets. Normally, you wouldn't do this unless you have a valid reason to do so, because it would be costly to maintain the small number of assets. Here's a little bit more about how much money you really need to open a trust fund.

In the best of circumstances, Colorado residents will have set up a financial plan that protects their assets if it becomes necessary for them to enter into a long-term care facility. When a viable financial strategy is in place, well in advance of the need, individuals can pay for their long-term care with Medicaid benefits rather than depleting their personal assets.

Such a long-term care strategy must be in place at least five years before the long-term care expenses begin to accrue -- otherwise the Medicaid five-year look-back period will prevent them from qualifying for Medicaid. In these circumstances, it's necessary to create what's called a "Medicaid crisis plan."