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Trusts Archives

The process of trust decanting

One of the estate planning tools that Nevada residents can use to protect certain assets for their heirs is an irrevocable trust. The nature of this particular type of trust prevents its provisions from being modified or cancelled, except in some cases with the expressed agreement of the beneficiaries and after taking expensive legal action. However, with legislation regarding decanting that is being passed in an increasing number of states, altering irrevocable trusts may soon become more common.

Estate planning and divorce

When couples in Nevada decide to divorce, they are often concerned with immediate issues such as child custody, support payments and the division of assets. One area that may be overlooked is that of estate planning. It is essential that couples review their estate plans as part of the divorce process.

Trusts can prevent estate planning headaches

Trusts are among the most flexible and useful instruments available to Nevada residents when it comes to estate planning. There are a number of different types, including some that are designed for specific purposes, like testamentary trusts, marital trusts and life insurance trusts. Bypass trusts and qualified personal residence trusts are also types that exist to serve a particular goal.

Estate planning and fiduciary responsibility

When Nevada residents create a trust, one or more individuals will be appointed to have some fiduciary responsibility. It is important for a person who has been appointed a trustee or who has other fiduciary duties connected with an estate to fully understand those duties and the liabilities associated with them. A fiduciary might want to work with a professional to identify potential issues and risks with the trust.

What to know about choosing a trustee

Nevada residents who prepare a living trust in most cases name themselves as the trustee. In many cases, spouses are both named as trustees. However, it is possible that each spouse may pass away sooner than expected. To account for this, a successor trustee is usually designated in the document.

A closer look at trusts for education funding

When Nevada families want to invest in the education of their next generation, trusts could provide flexibility and tax savings. Trusts allow people to set up their own investment plan instead of being limited to the investments allowed through a 529 education savings plan. The terms of a trust could also encompass more than paying for a young person's education. A trustee could have the ability to distribute funds for other expenses, such as medical bills or paying for a home.

Estate plans for all income levels

Some people in Nevada may think that the word "estate" in "estate planning" implies that a person needs to be wealthy in order to have an estate plan. However, an estate plan is important for all adults regardless of their income or assets. All estate plans are different, but they may have some elements in common.

Using a qualified personal residence trust

With rising estate tax and gift tax exemptions, the qualified personal residence trust is less common than it once was, but some people in Nevada still have a QPRT as part of an estate plan. With a QPRT, the owner transfers ownership in the home to a beneficiary but retains the right to continue living in the home for a fixed period of time. A QPRT can remove the value of the home from the estate and reduce the taxes on the home.

How to choose a beneficiary

Nevada residents who have created an estate plan may not have taken beneficiary designations into account. These forms may have been filled out along with a lot of employment paperwork, and people could forget about it. Therefore, beneficiary designations may need reviewing regularly. Otherwise, a person may fail to remove an ex-spouse or add a new one. There are a few points to keep in mind when choosing a beneficiary.