For many Nevada individuals, a trust may be an integral part of their estate plan. Besides lowering estate taxes,a trust provides a greater ability for the grantor to decide how his or her assets will be used or distributed after his or her death.
Depending on the circumstances, the grantor can appoint someone to manage a trust fund and make sure that the assets are being administered correctly. This individual is referred to as a trustee. Before setting up a trust, an individual needs to decide who his or her beneficiaries will be as well as to establish the reason why a trust was made in the first place. A trust can be irrevocable or revocable, meaning that the grantor can choose either to have the terms modified as he or she sees fit while they are alive or elect to have no control of the assets.
Grantors can choose to either place stocks, real estate, bonds or money into a trust, and they can also decide if they want to deposit assets over a period of time or in one sum lump. A grantor should also select when the assets should be distributed to a beneficiary. For example, a beneficiary may receive the assets at a predetermined time each year.
Individuals who would like to add a trust to their estate plan may want to seek the assistance of an estate planning lawyer. An attorney could help establish a trust and provide advice about how it should be structured to effectuate the grantor’s wishes. He or she may also be able to help move assets into the trust.
Source: Motley Fool, “Is a Revocable Living Trust Right for You?,” Maurie Backman, Sept. 15, 2016