Trusts provide versatile tools for transferring wealth

On Behalf of | May 3, 2018 | Trusts

People in Nevada interested in preserving wealth and sharing it with heirs or charities often select trusts as their legal instruments. Trusts represent legal documents that direct the investment and distribution of assets. Under the right circumstances, they generally provide tax advantages. Advice from financial or legal advisers typically guides people as they determine how best to integrate trusts with the goals of an estate plan.

Concerns about heirs frequently influence the distribution rules within trusts. As long as a trust complies with tax regulations, they can accomplish goals like postponing distributions until minors reach certain adult ages. A trust might also wall off assets from creditors that have claims upon beneficiaries. A trust could also be designed to preserve the principal and use proceeds to fund other goals like a family charity.

Regardless of the purpose behind a trust, every trust requires a trustee. The choice of trustee represents an important decision that could have long-term effects. Ideally, a trustee will have the time and talents necessary to manage investments, keep records and follow the trust’s terms. Instead of naming a family member as trustee, a person could assign the role to a third-party trust company or bank. This strategy could ensure that the trustee has the resources and expertise to handle complicated assets. The bifurcated service arrangement presents another option. This approach entrusts a corporate trustee with the legal and administrative duties of trust management while retaining a trusted family adviser at the helm.

A person might want the insights of an attorney familiar with trust planning when making these decisions. An attorney may be able to research local and federal tax laws and recommend strategies that protect assets and promote the person’s goals. After selecting an approach, an attorney might prepare all of the documents for the estate plan.