Some people in Nevada who are creating an estate plan may think mainly in terms of financial assets. However, this is only one part of what a person could pass on to loved ones. People also have legacies, which consist of things such as family traditions, beliefs, stories and values. They can be helpful for families in many ways as studies have shown that children often have better self-esteem and coping skills when they have a stronger sense of their family histories.
Charitable trusts are governed by somewhat different rules than other types of trusts. People in Nevada who are creating an estate plan that includes a charitable trust may be interested in learning that it can last into perpetuity unlike other types of trusts. This is prohibited with regular trusts to prevent actions, such as someone trying to keep a property in a family indefinitely.
Estate plans are not just for people that have substantial wealth. Nevada residents that have any type of assets should have an estate plan in place to ensure that their possessions will be disbursed according to their wishes when they are gone. A well-designed estate plan can prevent conflicts regarding the assets and lessen the tax burden of heirs.
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.
Trusts are a commonly used tool in estate planning. There are many types of trusts Nevada residents may choose from when they are evaluating their estate planning options.
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 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.
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.
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.
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.