5 Life Events That Call for a Will and a Trust

It's the task that always slides to next year, the one you'll get to once life slows down. Then when you least expect it, the paperwork you kept putting off becomes the only thing standing between your family and a long stretch in probate court or years battling over your final wishes. A will and a trust are easiest to set up before you need them. Here are five life moments that signal it’s time to get to work. 

Put a plan in place when you buy a home.

A house is likely the largest asset you own, and it has probably increased in value since you signed. Without a will or trust, that home can end up in probate, where a court oversees how it transfers and the whole process becomes public record. A trust lets it pass straight to the people you choose, privately, without the court's calendar setting the pace. Also, if you pass away with the house in your name alone, formal probate in Colorado can run six months to a year, with the mortgage and property taxes coming due the entire time the house sits in limbo.

Update everything when you marry or blend a family.

Marriage, remarriage, and stepchildren can be complicated on their own. Colorado's intestacy law divides an estate along bloodlines and legal marriage, which often leaves out a stepchild you've raised or a partner you never formally married. Spelling out your wishes is the only way to be sure the people who matter most are actually covered. Put it in writing who gets the house, who gets the heirloom, and who is intentionally left out, because in a blended family an unspoken assumption is what turns relatives into opposing parties.

Name a guardian the moment you have kids. 

A will is the one place you can say who raises your children if you can't. Skip it, and a Colorado court makes that call without your input, sometimes between relatives who disagree. Naming a guardian now, even a temporary choice you revisit later, keeps that decision out of the courtroom. Name a backup guardian too, and ask both people before you list them. That way, no one is blindsided with a request to raise your kids during the hardest week of their life.

Protect the business you've built.

If you own a company or a stake in one, your estate plan decides whether it keeps running or stalls the day you step away. A trust can name who takes over, how ownership transfers, and what happens to the income in the meantime. Family businesses that exist without succession plans could result in problems down the line. Partners and heirs can spend months, and substantial legal fees, sorting it out while the doors stay closed. Spell out that plan now and the business opens the morning after. Skip it, and a profitable shop can get sold off for less than it’s really worth just to split the proceeds.

Set up a trust when you want to skip probate.

Even with a will, most estates still pass through probate, and that can mean months of waiting and court costs before anything reaches your heirs. A revocable living trust sidesteps the line entirely, transferring your assets quickly and privately. You keep full control of everything while you're alive and simply name who takes over afterward. Just remember to actually move your accounts and property into the trust once it's drafted, because an unfunded trust still ends up in probate, the very outcome you set it up to avoid.

Frequently Asked Questions

Q. What is the difference between a will and a trust?

A. A will is a document that names who gets what after you're gone. It's the simpler, cheaper one to set up, but it doesn't skip probate, so the court still oversees the handoff, and that can run slow and pricey.

A trust is a legal setup that holds your assets and passes them out on your instructions without a court being involved. It works while you're alive, covers you if you're ever incapacitated, and keeps going after you're gone, all without probate.

Note: Depending on your state, the details surrounding the establishment of a trust or will and the protections it provides will vary. 

Q. Do I need both a will and a trust?

A. Maybe. It’s not unusual to use both since they can protect your heirs and assets in different ways. You can place your assets in a trust while also having a will in place that names guardians for minor children and handles assets not named in the trust.

Q. Who can help me with these documents?

A. Consult with an estate attorney for help with drafting documents for your specific situation. These decisions belong with you, not a courtroom, and the only way to keep them there is to get it in writing before you need it. 

Disclaimer: This article is provided for informational purposes only. It is not intended as a substitute for legal advice. Readers should consult with qualified individuals for up-to-date guidance and help in determining the full breadth of legal documents applicable to their situation.