Overview of a trust

On Behalf of | Jan 30, 2018 | Trusts

Nevada residents who are concerned about their privacy or want to minimize taxes may want to place assets into a trust. A trust can be controlled either by the person who creates it or on behalf of that person through a trustee. Trusts are generally considered to be revocable or irrevocable. As the names imply, revocable trusts may be altered while irrevocable trusts generally cannot.

One of the benefits of a trust is that assets are generally protected from creditors and from being lost in the event of a divorce. It may also be possible to name secondary beneficiaries in the event that the primary one passes away. As a general rule, the transfer of assets through a trust tends to be faster and done without being made part of the public record. Assets that are held in a trust generally don’t need to go through probate after a person dies.

There are many different types of trusts such as a marital trust, charitable trust and credit shelter trust. Marital trusts allow for a spouse to benefit from income generated by assets inside of it, and specified beneficiaries generally get the asset itself once the spouse passes on. Charitable trusts provide a certain amount of money to charities while leaving remaining assets to other named beneficiaries.

Engaging in trust planning may make it easier for an individual to carry out his or her wishes after death. Assets in a trust may be used for the benefit of children, grandchildren or future heirs. They may also be used to help a charity or other cause that an individual feels strongly about. An attorney may be able to help draft or review existing trust documents.