People in Nevada who are preparing their estate plans may wish to preserve wealth in their families for many years to come. However, what often happens to family wealth in reality is that it often dissipates over just a couple of generations. That which is passed down is spread between more and more people, and both estate taxes and business risks also take their share.
However, there is another way of thinking about family wealth that might better preserve it for future generations. Rather than thinking in terms of children and grandchildren inheriting lump sums of money divided into increasingly smaller amounts, family wealth can be preserved to provide heirs with the opportunity to pursue education, entrepreneurship and other ventures that require capital. In many ways, this may be giving a greater gift to those descendants.
In most families with high assets, wealth does not continue past the third generation. However, a family trust can be an ever-replenishing and renewable source of opportunity for the family for generations to come. It also avoids turning heirs into people who rely only upon trust funds to support themselves.
Trusts and estate planning can be complex, and people who are interested in setting up this kind of trust, a will or other similar types of documents may wish to consult an attorney who is familiar with recent changes in applicable laws. For example, the federal estate tax exemption is due to go up in 2016. This may affect the way that the overall plan is designed. It is also important to have an attorney periodically review the estate plan because these types of changes might also occur after the plan is put together.