Decanting a trust refers to creating a second trust to revise the terms of an irrevocable trust. Under the original terms of an irrevocable trust, the assets are moved completely out of the control of the grantor and the trust cannot be altered or canceled. However, 25 states now allow decanting of an irrevocable trust, and Colorado is one of them.
Estate planning requires people in Colorado to consider their goals carefully. In some cases, a living trust, also known as a revocable trust, achieves the desired level of asset protection and distribution, but the document also require trustees to administer its terms. A trust for a married couple might name the spouses as the trustees, but the document must name successor trustees who take over after the original trustees have passed away or otherwise become unable to serve.
Residents of Colorado may be curious about the options available that can prevent a family home from going into probate. Among the many trusts available for estate planning, one type is specifically designed to both reduce the estate's value and provide a partial shield against the gift tax. The qualified person resident trust protects against home appreciation and provides a method for the early transfer of assets to beneficiaries.