Nevada residents who have an existing estate plan might feel that their work is done, but reviewing the documents periodically is advisable. For example, due to changes in tax and trust laws, anyone who created a trust a few years ago should take another look at it.
Trusts are a popular tool in estate planning because they can be used to manage wealth in so many different circumstances. They might be irrevocable or revocable depending on how much control the owner wants over the assets and what the owner hopes to accomplish. Trusts can be used in a business or for personal matters.
Trusts might be paying more in income tax than individuals do, due to a change in federal tax rates. As a result, some people are changing the terms of their trusts so that either the grantor or a beneficiary pays that tax. The federal estate tax exemption has also risen, so in some cases, a trust may not even be necessary any longer. Another reason to review trusts is because of changes in one’s business or personal life. For example, a business may have new owners, or a child may have decided not to work with the family business after all. Furthermore, as the economy changes, the safety of certain investments may change.
Trusts are not the only aspect of an estate plan that need regular review and updating. Wills, powers of attorney and other documents might also need to be reviewed. For example, a person’s remarriage, having children or the death of family members might all trigger a change in these documents. People may change their mind about what they have put in a living will or advance medical directive. People should also keep in mind that they may want to change beneficiaries on life insurance policies, retirement accounts and other assets that are not transferred by will or trust in the event of a change in circumstances.