What kinds of trusts does Colorado law recognize?

Revocable and irrevocable trusts (C.R.S. §15-5-602), trusts with a spendthrift provision (§15-5-502), discretionary trusts (§15-5-504), charitable trusts, trusts for animals and other noncharitable purposes (§15-5-402), and directed trusts in which a trust director holds a power of direction (§15-16-806).

What is a spendthrift trust in Colorado?

A trust with a provision restraining both voluntary and involuntary transfer of a beneficiary's interest; a beneficiary's creditor cannot reach the interest or a distribution before the beneficiary receives it (C.R.S. §15-5-502), except as §15-5-503 provides — for a child support order, among others.

What is a directed trust?

A trust whose terms give someone other than the trustee — a trust director — a power to direct investments, distributions or other decisions; the directed trustee follows the direction and is not liable for doing so except for willful misconduct (C.R.S. §§15-16-806, 15-16-809).

Types of Trusts in Colorado

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Common types of Trusts in Colorado

Revocable living Trust

Created during life and changeable anytime; commonly used to avoid probate and plan for incapacity. You keep control — so it is not asset protection.

Irrevocable Trust

Generally can't be changed or revoked once created; you give up control in exchange for benefits some irrevocable Trusts can offer, such as certain tax or planning goals. Fact-specific — for an attorney to design.

Testamentary Trust

Created by your will and funded only after death, through probate. Useful for leaving assets to minors or in stages.

Special needs (supplemental needs) Trust

Holds assets for a beneficiary with disabilities without disrupting needs-based public benefits like Medicaid or SSI, when properly drafted.

Spendthrift Trust

Includes a spendthrift provision that restrains a beneficiary's ability to transfer their interest and limits some creditors' reach (C.R.S. §15-5-502), within limits.

Charitable Trust

Benefits a charitable purpose; certain forms can combine giving with income or tax planning. Design and compliance are an attorney/advisor matter.

Trust for a pet

A Colorado statutory trust for the care of designated domestic or pet animals (C.R.S. §15-5-408); unless the trust ends it earlier, it ends when no living animal it covers remains.

Which type of Trust fits your goals?

Trusts are tools — the right one (if any) depends entirely on your goals, your family, your assets, and tax considerations. This page is general information, not legal advice. A free role check can show you where you stand, and a Colorado attorney can design what fits your situation.

General information about Colorado law, not legal advice.

Frequently asked questions

What kinds of trusts does Colorado law recognize?: Revocable and irrevocable trusts (C.R.S. §15-5-602), trusts with a spendthrift provision (§15-5-502), discretionary trusts (§15-5-504), charitable trusts, trusts for animals and other noncharitable purposes (§15-5-402), and directed trusts in which a trust director holds a power of direction (§15-16-806).
What is a spendthrift trust in Colorado?: A trust with a provision restraining both voluntary and involuntary transfer of a beneficiary's interest; a beneficiary's creditor cannot reach the interest or a distribution before the beneficiary receives it (C.R.S. §15-5-502), except as §15-5-503 provides — for a child support order, among others.
What is a directed trust?: A trust whose terms give someone other than the trustee — a trust director — a power to direct investments, distributions or other decisions; the directed trustee follows the direction and is not liable for doing so except for willful misconduct (C.R.S. §§15-16-806, 15-16-809).

General information about Colorado law, not legal advice.