Cassady Law Offices, P.C. - Las Vegas Estate Planning Attorney
Call for a free consultation
702-706-1083

Pros and cons of a Nevada trust

For individuals with an estate worth less than $5.45 million and couples with assets less than $11 million, a trust may not provide any tax advantages. This is because changes to estate tax laws provide exemptions that eliminate estate taxes for almost all Americans. In some cases, individuals who inherit assets through a trust as opposed to a traditional inheritance could face several disadvantages.

First, when an individual inherits an asset through a trust, there is no step up in basis. Income derived from a trust is also taxed at the highest rate of 39.6 percent if it is more than $12,300 in a year. However, despite their flaws, there may still be good reasons to create a trust anyway. For instance, they may provide protection from creditors or make it easier to provide assets to children in a controlled manner.

For those who choose to create a trust, it is important to choose a trustee who is responsible and charges reasonable fees. A trustee can be anybody, such as a family member or friend whom an individual believes can do a good job. It may also be an entity such as a bank or financial firm. Adding a trust protector may make it possible to remove a trustee in the future if he or she is not meeting his or her expectations.

Those who are interested in creating a family trust or need general trust planning advice may want to talk to an attorney. He or she may be able to help draft trust documents or review a current trust to ensure it still meets an individual's needs. Legal counsel may be able to work with an individual to explain the pros and cons of such a document to determine if one is worth creating.

No Comments

Leave a comment
Comment Information
Email Our Team

More Questions? We Have Answers.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Las Vegas Office
10799 West Twain Avenue
Las Vegas, NV 89135

Toll Free: 800-557-6423
Phone: 702-706-1083
Fax: 702-650-5561
Las Vegas Law Office Map

Henderson Office
2425 W. Horizon Ridge Pkwy.
Henderson, NV 89052

Toll Free: 800-557-6423
Phone: 702-706-1083
Map & Directions