[CO] How do I make my daughter the successor trustee of my trust and transfer my property to her?

Lexi, Chatbot

I understand you are making yourself the trustee of your revocable trust and your daughter as the second. Have you already prepared the necessary trust documents for this arrangement?

Lexi, Chatbot

Have you consulted with a lawyer to ensure that adding your daughter to the title of your home aligns with your overall estate planning goals?

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your estate planning.

Andres Sanchez

Hello! I'm Andres Sanchez, an estate law expert here to help you navigate your trust and asset planning.

Andres Sanchez

What state are you in?

Andres Sanchez

Here’s how to structure this for a seamless transfer of your home and property in Colorado, along with any potential issues you should be aware of:

1. Revocable Living Trust & Successor Trustee

If you are naming yourself as the initial trustee and your daughter as the successor trustee:

• She does not need to sign anything at this stage. Successor trustees only take over after your incapacity or death.
• However, it’s smart to notify her and provide her a copy or at least a summary of the trust, so she understands her future role.

If, instead, you are naming her as co-trustee now, then yes, she would need to sign the trust document to indicate she accepts the position.

2. Adding Your Daughter to the Home Title

There are two options:

Option A: Transfer the Home to the Trust

• You deed the home from yourself individually into your revocable trust.
• The trust should list your daughter as the beneficiary (to receive the home upon your death) and successor trustee.
• This is the cleanest and safest method:
  • Avoids probate
  • No immediate gift
  • No Medicaid penalty, if ever relevant 

Option B: Add Daughter to the Deed Now

• You execute a deed naming both you and your daughter as joint tenants with right of survivorship.

Risks of this method:

• Considered a gift of your property interest (possible gift tax consequences).
• Eliminates the step-up in basis for your daughter on your share (can lead to capital gains if she sells).
• Her share could be exposed to creditors, divorce, or lawsuits.
• Medicaid eligibility could be impacted.

Bottom Line: Do not add her directly to the title unless there’s a compelling reason. It’s cleaner to keep the home in your revocable trust with her as the beneficiary and successor trustee.

3. Other Considerations

• Power of Attorney: Ensure your daughter is named as agent in a durable POA and medical POA.
• Property Tax: In Colorado, transfers to your revocable trust typically don’t trigger reassessment. Joint ownership might.
• Insurance: If you add her to the title, notify your homeowner’s insurer. Some policies require all owners to be named.

Andres Sanchez

Yes, to transfer your home into your revocable trust in Colorado, you’ll typically use a Quitclaim Deed (QCD) or a Warranty Deed to Trust—either is acceptable, but the QCD is more commonly used for estate planning transfers, especially between yourself and your trust.

Andres Sanchez

You're welcome. I hope everything works out for you.