Nevada residents who are being to plan how their estate is administered after they pass away might benefit from information in a recent article regarding trusts funds. Trust funds can be used to care for people when they no longer have the capacity to care for themselves. An individual can set up a care management trust with themselves as beneficiary and another person, who can make decisions for the beneficiary about issues such as moving into care facilities and end-of-life care, as trustee. A trust may be the best way to protect assets that pass to minor children from parents or grandparents before they come of age.
An individual can also use a trust to provide for a disabled family member. Cash gifts may reduce the amount of government aid available to a disabled person, but a trust can be formed in a way that pays for expenses not covered by public aid, allowing the beneficiary to continue receiving government benefits.
A trust is also an excellent way to manage a fundraiser for people who need help with medical expenses or to support a family with minor children who may have lost one or both parents. Finally, if an individual has many assets, a living trust may be a better solution than a will. All wills must pass through probate court, and this can be complicated and expensive. A living trust allows successor trustees to be named, and the property passes to them more efficiently in many cases.
An attorney may be able to help an individual who is considering the benefits of trusts and other estate planning tools understand how those devices affect that client’s circumstances. If a trust can be tailored to fit a client’s needs, the attorney could draft the documents necessary to set up the fund.
Source: Investopedia, “Surprising Uses for Trust Funds“, Sarita Harbour, July 17, 2014