If you’ve been doing a little estate planning research, you’ve probably come across advice that says, “You need a trust.” But is that actually true for your situation?

The answer, like most things in estate planning, is: it depends.

Trusts can be powerful tools—but they’re not one-size-fits-all. Many Colorado families don’t need one, and a basic will-based plan is often more than enough. Still, there are certain situations where a trust can make things easier, cleaner, or more private for your loved ones down the road.

Let’s walk through what a trust does, when it’s helpful, and how to decide if it’s worth setting one up.

First, What Is a Trust?

In plain English, a trust is a legal arrangement that holds and manages property for someone’s benefit.

There are lots of types of trusts, but the most common in estate planning is a revocable living trust. This is a trust you create during your lifetime, and you can change or revoke it at any time. You (and your spouse, if applicable) are usually the trustees and beneficiaries while you’re alive.

After you pass away, the trust becomes “irrevocable” and the person you named as successor trustee steps in to manage and distribute the assets according to your instructions without going through probate.

When a Trust Is Helpful

A recovable trust can make a lot of sense if:

• You want to avoid probate. Probate in Colorado is generally manageable, but it’s still a court process that takes time. A trust avoids that.
• You own real estate in more than one state. A trust can help your family avoid probate in each state.
• You have privacy concerns. A will becomes public once filed with the court; a trust remains private.
• You want more control after your death. A trust can stagger distributions to young adult beneficiaries (rather than handing them a lump sum at age 18) or include rules for how and when money is used.
• You have a blended family or specific inheritance goals. A trust can help ensure assets pass exactly how you intend, even in complex family situations.

When You Probably Don’t Need a Trust

For many Colorado families, a well-drafted will-based estate plan is more than enough—especially if:

• You own all your property in Colorado, and it’s titled clearly
• You don’t need long-term control over how assets are distributed
• You’re okay with your estate going through Colorado’s relatively straightforward probate process
• You don’t own real estate in other states or have complicated business assets

It’s also worth noting that you can still avoid probate on many assets without a trust—by naming beneficiaries on things like life insurance, retirement accounts, and even bank accounts.

But What About Taxes?

For most families, estate taxes are not a concern. As of 2025, the federal estate tax exemption is still over $13.99 million per person, and Colorado has no state estate tax. So unless you have a very large estate, a trust likely isn’t needed for tax reasons alone.

How to Decide with Confidence

Here’s the simplest way to think about it:

• If you want to avoid probate, increase privacy, or add structure to how your assets are used, a trust may be worth the extra time and cost.
• If your estate is straightforward and you want a solid, simple plan, a will-based plan likely meets your needs.

Either way, your plan should be tailored to your real life—not someone else’s situation on the internet, especially when they are trying to sell you services.

The Bottom Line

You don’t need a trust to have a good estate plan. But in the right situations, it can be a helpful tool for simplifying things for your loved ones.

At Lester Law, we walk through these options with every client so you can make a decision that fits your goals, your values, and your family. No pressure, no upselling—just clarity on what makes sense for you. If you’re ready to explore whether a trust is right for your situation, we’re here to help.

———–
This website includes information about legal issues. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You should contact an attorney for advice on your specific legal problems.