It may seem counterintuitive, but planning for death can help you make the most out of life. A recent piece in the Huffington Post discussed the importance of estate plans, noting that these legal tools are important for everyone, regardless of age.
Many people in Nevada are under the false impression that do-it-yourself estate planning kits cost less than working with an attorney. Not only can the prices of these kits be more expensive or comparable to an attorney's fees, creating estate planning documents on self-help websites can end up costing your beneficiaries more down the line.
Nevada residents may wish to know about a specific issue that many parents face when leaving assets to their children. When the parent has a disabled child, care needs to be taken in estate planning to avoid unforeseen consequences.
In Nevada, a revocable living trust is sometimes used as an estate planning alternative, particularly for probate issues that can't be solved with a will. Before deciding on using a revocable living trust, an individual should take certain factors into account.
While people may have heard of A-B trusts, they may not know what these trusts are or why they are used. These trusts are established by married couples in order to help avoid double-taxation after one spouse dies.
Nevada residents may be interested in understanding more about the benefits and process involved with creating a charitable trust. These trusts allow individuals to donate significant funds to certain charities without diminishing the wealth held in personal banking accounts. Estate owners may consider using a charitable lead trust or a charitable remainder trust. Many estate owners wait to secure college tuition and retirement savings before using discretionary income to fund charitable trusts.
In a decision released on Feb. 13, the Internal Revenue Service set standards regarding issues about the gift tax, clarifying whether contributions to a trust are completed gifts. The letter also discussed whether the fair market value of property held in trust was included in a trustor's estate. This federal letter ruling may affect some estate plans in Nevada.
Las Vegas residents with an interest in estate planning issues may be interested in an article detailing one method for updating a trust after it has become irrevocable. This method may have tax consequences, good or bad, so professional guidance should be sought.
One of the most common assets that an individual will hold is a life insurance policy. However, they can be problematic when it comes to estate planning. One way to get around these issues is to create an irrevocable life insurance trust. What the trust will do is hold the insurance policy outside of the estate. At the same time, it still allows an individual control over who gets to benefit from the policy.
President Obama issued a proposal at the 2015 State of the Union Address that would have closed loopholes available to those with assets in a trust. Currently, if assets are passed on to heirs, the heirs get what is called a step-up in basis. In other words, their cost basis is the current price of the asset instead of what it was worth when it was first purchased.