Cassady Law Offices, P.C.Cassady Law Offices, P.C.2024-02-29T17:27:55Zhttps://www.cassadylawoffices.com/feed/atom/WordPress/wp-content/uploads/sites/1604127/2023/02/cropped-site-icon_favicon-32x32.pngOn Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505822024-02-01T20:34:05Z2024-02-01T20:34:05ZProgressive laws and tax benefits
Nevada's appeal for trusts is largely due to its progressive trust laws, which offer several advantages. One key benefit is the state's favorable tax environment. Nevada imposes no state income tax on trusts, which can result in significant savings, particularly for trusts with substantial income-producing assets.
Asset protection
Nevada also offers strong asset protection laws, particularly beneficial for those looking to shield assets from potential creditors. Nevada asset protection trusts, also known as self-settled spendthrift trusts, allow individuals to place assets into a trust, protecting them from future creditors while benefiting from the trust assets.
Privacy protection
Nevada trust laws ensure a high level of privacy. Unlike some states, Nevada doesn’t require trusts to be filed with a state agency or court. This provides confidentiality of the trust's terms and assets.
Dynasty trusts
Another advantage is the allowance of dynasty trusts. Nevada permits trusts to last up to 365 years, allowing assets to be passed down to multiple generations without the imposition of estate taxes at each transfer. This is ideal for long-term legacy planning and wealth preservation across generations.
Flexibility in planning
Nevada's trust laws are known for their flexibility, allowing for modifications to trusts to adapt to changing legal, tax and family circumstances. This adaptability is crucial in effective estate planning, ensuring that trusts can evolve to meet the future needs and goals of beneficiaries.
Trusts are only one part of a comprehensive estate plan, so creators should consider all aspects of the process as they set things up. Legal assistance is beneficial in order to better ensure that everything is crafted exactly as a creator intends.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505802024-01-11T19:39:15Z2024-01-11T19:39:15ZBy starting with their siblings (if applicable)
Some parents only talk about estate planning matters with one of their children despite having large families. Others don't discuss their plan with anyone. Children worried that their parents may not have an estate plan can first discuss the matter with their siblings to determine whether their parents have already drafted documents. They can also discuss having a sit-down conversation with the entire family present to ensure everyone is on the same page.
By talking about real-world examples
Most people know at least one person who had to watch an aging loved one struggle through improper medical care due to a lack of proper planning. Plenty of others may have witnessed the conflict that erupts when parents die and do not leave testamentary documents. Siblings may end up destroying their relationships with one another as they fight over the inheritance that they believe they should receive.
Even if parents don't worry much about their personal legacies, they undoubtedly want to minimize the stress their children may experience after their death and the conflict that probate proceedings may trigger. Talking about the negative experiences others have had when parents die without an estate plan might inspire parents to take action to protect the people they love the most.
As a final note, raising questions about the ability to pay for nursing home care can sometimes help older adults see the value in estate planning. They can plan for long-term care needs and guardianship matters in addition to the legacy that they may leave behind when they die.
Ultimately, discussing estate planning with parents can be awkward but is often an important step for the adult children of aging parents.
]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505742023-11-30T17:37:09Z2023-11-30T17:37:09ZILITs can manage two types of policies
An ILIT is a trust specifically established to manage and distribute the proceeds from life insurance policies. The person creating the trust could fund it with either a traditional individual life insurance policy or a second-to-die policy. Such policies apply to two individuals, often spouses or co-parents, and only pay out after both individuals have died. An ILIT can manage the proceeds from either type of life insurance policy.
ILITs can shield children from inheritance loss
Minor children and adult dependents with special needs are often incapable of inheriting assets directly. Their guardian or surviving parent would have control over any inherited resources until they reach adulthood. The possibility of a guardian or parent misusing a child's inheritance is a legitimate concern for those trying to provide financial support for their dependents.
An ILIT holds life insurance proceeds on behalf of those who cannot inherit them directly. The trustee then distributes the proceeds in accordance with the instructions of the trust creator. It is possible to set the funds aside until the recipients reach a certain age or to limit the use of the funds for very specific situations, like medical costs and educational expenses.
ILITs provide tax and debt collection protection
A sizable life insurance policy could put someone at risk of estate taxes if it pushes the total value of their estate over the current exemption threshold. It could also be at risk of creditor claims during the probate process. Arranging to have the funds go directly to a trust will diminish the likelihood that life insurance generates tax liability or could be at risk of creditor claims after someone's death.
Learning about different types of trusts may help people choose the right tools for leaving lasting support for their loved ones when they die.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505412023-10-06T08:27:12Z2023-10-06T08:27:12ZThere was previously a deduction available
For decades, those putting together thorough estate plans have been able to retain receipts from their attorneys and then report those amounts when filing an income tax return. Unfortunately, those who currently want to draft a will or fund a trust will discover that those credits are not currently available.
The Tax Cuts and Jobs Act changed the tax rules for estate planning tax breaks. Those paying to have a legal professional put together or update an estate plan can no longer deduct those costs will filing an income tax return. However, provisions from the law will phase out at the end of 2025. There's a good chance that future legal reform before then could also reinstate the prior tax deductions.
Procrastination may do more harm than good
Some people might tell themselves that they should wait to create or update a will, trust or other estate planning paperwork until the provisions of the Tax Cuts and Jobs Act are no longer in effect. However, they will have to accept the possibility that they might die without any estate planning documents on record as the trade-off for that tax credit.
With all of this said, it is important to remember that the loss of control over one's legacy and the vulnerability of family members far outweigh the moderate tax benefits of having a write-off available for the costs associated with estate planning.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505342023-10-02T04:04:08Z2023-10-02T04:04:08ZWhen you have to administer an estate
There are so many different requirements related to estate administration that it is easy for someone to make mistakes or oversights. Some people will also let their emotions or pre-existing relationships with beneficiaries influence how they handle estate resources unless they have outside input during the process. Those who have accepted the role of executor or personal representative of an estate in Nevada will often need to hire a lawyer to protect them and ensure that they properly fulfill their obligations. In most cases, the estate itself will pay for that legal representation.
When you have concerns about misconduct or document issues
Sometimes, one of the likely beneficiaries of an estate will worry about the validity of the documents. They may believe that someone made changes when they lacked the cognitive capacity to do so. They could have questions about whether there was fraud or if a third party may have influenced the testator to change their documents. Other times, a prospective beneficiary may believe that the documents are accurate but might worry that the person serving as the representative has embezzled or proven incompetent.
Those who believe they may need to initiate litigation or who worry about protecting their inheritance rights may also want to hire attorneys to review the case and possibly represent them during litigation. Essentially, anyone who may need to handle an important matter in the Nevada probate courts would likely benefit from retaining a lawyer during that process.
Seeking thoughtful legal guidance can help people understand and make use of their rights under Nevada probate law at any time.
]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505302023-08-31T14:08:38Z2023-08-31T14:08:38ZA holographic will is handwritten
While the word holographic may conjure thoughts of a projected or reflected image, a holographic will is simply a handwritten document where the description of what should happen to someone's property and the date are handwritten by the testator. The document will also need to include the testator's signature. It does not require any witnesses or notarization.
Technically, the Nevada probate courts can choose to uphold holographic wills. However, there are many reasons for concern when someone leaves behind an unwitnessed, unnotarized holographic will. There could be questions about their testamentary capacity that might lead to challenges and probate court. Family members may also worry about the risk of fraud, as some people can convincingly imitate the handwriting of others.
While the Nevada probate courts may uphold a holographic will, such documents often lead to family conflict and uncertainty among beneficiaries. The courts might potentially invalidate the document if there is any question about either its authenticity or the mental state of the testator at the time of its creation. There are also risks associated with an individual unfamiliar with the law attempting to create a legally-binding document.
Those who want to leave resources for specific family members and who have specific plans about their legacies will often benefit more from working with the professional to create witnessed and legally accurate documents as opposed to attempting to draft their own documents without support.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505292023-08-07T22:33:30Z2023-08-07T22:33:30ZFactors influencing the choice between living trusts and wills
While 67% of Americans acknowledge having an estate plan is essential, only 33% of adults have documented their end-of-life plans. Among the reasons for hesitation is that many believe that they have nothing of value to leave behind when in reality, an estate plan can be tailored to suit each individual’s unique set of assets and circumstances.
The complexity of someone’s assets can significantly impact the choice between a living trust and a will among the Americans who choose to create an estate plan. If an individual possesses multiple properties, businesses, valuable investments or complex financial arrangements, a living trust may be particularly appropriate.
Living trusts help provide a mechanism for seamlessly managing assets should the grantor become incapacitated. The appointed trustee can step in and manage the trust without needing a court-appointed guardian. This aspect can be particularly attractive to individuals worried about their ability to manage their affairs later in life.
On the other hand, individuals with straightforward and modest estates may find a will sufficient for their needs, particularly if they are not too concerned about probate. Statistics show that in 2021, 75% of end-of-life plans were wills, and only 18% were trusts. This could be because living trusts typically require more upfront costs to set up. This is even though trusts can save beneficiaries from the financial burdens of probate in the long run.
When choosing between living trusts and wills, there is no one-size-fits-all answer. Each option has its advantages and disadvantages, and the choice should be based on a thorough evaluation of one’s estate, preferences and goals.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505272023-08-01T03:45:00Z2023-08-01T03:45:00ZProbate disputes can arise due to various issues. These often include the interpretation of the will, the handling of the estate by the executor or the perceived fairness of asset distribution. It's essential to approach these disagreements with empathy and respect, recognizing that high emotions often accompany the grief and loss of a loved one.
Foster open communication
Open and honest communication is often the first defense against escalating disputes. A candid conversation about each party's concerns and expectations can clear misunderstandings and find common ground. Strive to keep these discussions focused on the estate issues rather than veering into personal conflicts or past grievances.
Understand the probate process and will
Understanding the probate process and the will's contents can help manage expectations and reduce potential conflicts. Ensure that everyone involved knows the terms of the matter, the steps involved in probate and the timeframes for asset distribution. Reviewing the estate plan together may provide a valuable chance to talk through the interpretation of what’s written.
Weigh the options for handling the dispute
Because of the risk of breaking up the family, those involved must carefully consider how the options will impact everyone. Nobody should have to go without their due inheritance; however, some people may find that being a little bit flexible about what they’re going to get may help to keep a sibling relationship intact while still getting the probate matter handled.
Seeking legal guidance may help you to learn more about your options while protecting a loved one’s entire estate. Remember that probate concerns are time-sensitive so you should act quickly once you realize something is amiss.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505062023-06-02T13:23:15Z2023-06-02T13:23:15ZTransparency reduces surprise-based litigation
It is a natural assumption on the part of many children to expect that they will inherit a portion of their parent's property, possibly split evenly with their siblings. When the actual terms of someone's estate plan deviate from that expectation, family members may become emotional and may decide to take legal action. Those who expect to inherit from an estate may initiate probate litigation challenging the validity of the testamentary documents because they are upset and disappointed.
Therefore, having earnest discussions about one's true plans could prevent a conflict that could damage the family and diminish the resources that will pass to the next generation. Many testators benefit from talking individually with their children about their inheritances and also discussing the matter as a whole with the family. That way, everyone understands what to expect when the testator dies, and people will have had time to come to terms with someone's last wishes.
That being said, there is no legal requirement to disclose the decision to disinherit a child or other likely beneficiary before a one dies. So long as testators follow the right process when disinheriting someone, they have the final say in who receives the property from their estate. They can choose to forgo those difficult conversations and let the family settle the matter after their death, should they so choose.
Those concerned about eliminating a risk of legal challenges and family conflict may find that discussing their estate planning decisions with loved ones is the best choice, but unique situations require bespoke solutions. Understanding how people approach different matters related to estate planning may help testators more effectively protect themselves and their wishes.]]>On Behalf of Cassady Law Offices, P.C.https://www.cassadylawoffices.com/?p=505052023-05-29T23:42:08Z2023-05-29T23:42:08ZUsing a conservatorship
In some cases, a conservatorship will be established. In this situation, a conservator is appointed to help that minor heir with the assets left to them by their parent’s (or parents’) estate. Oftentimes, a conservator is related to the child – such as an uncle or an ant – but that is not required. They just have to be a trustworthy adult who can help the minor manage their affairs until they’re old enough to do so on their own.
Using financial accounts
In some cases, money will be put into a financial account for the minor. This could be a 529 account, for example, which is an educational account. It provides some tax advantages. Eventually, the money can be used for future tuition costs. If a parent passes away without leaving any directions, the money that is supposed to go to their child may be put into one of these funds so that it is used appropriately.
Using a trust
Of course, parents also have the ability to set up trusts for minor children. When they pass away, money or other assets will be transferred into the trust. Much like a conservatorship, a trustee will be appointed to manage these funds. Exactly how long the trust lasts will be up to the person who creates it. For example, some parents will wait to have certain assets distributed until their child is 25, not 18.
Distributing assets to minor heirs can be a bit more complicated than an asset transfer would be in other situations. It’s quite important for those who are involved to understand their legal options. Seeking legal guidance during the estate planning process can be very helpful, as a result.]]>