Some people in Nevada may assume that a will is sufficient for an estate plan, but there are a number of reasons that a trust might be a better choice. The person who creates a trust is known as the settlor, and the settlor appoints a trustee who will manage the trust. A trustee has what is known as a fiduciary duty. This means that the person is required to manage the assets in the trust competently. Trustees must follow the terms of the trust and be objective in dealing with beneficiaries. They must also provide information to the beneficiaries as required by the trust.
A trust may be created if a person believes that a beneficiary may be irresponsible with assets. It can also protect assets from creditors and divorce. Many people prefer a trust because it is private, unlike a will. A charitable remainder trust may reduce taxes and provide for both a charity and loved ones. It may also have a number of other functions, including providing for the settlor in case of becoming incapacitated.
A living or revocable trust is the type chosen by most people. The attorney may also be able to help in structuring the trust depending on the goals of the settlor.
There are several common trust-related errors people should avoid. One is creating the trust but failing to fund it. Another is failing to review the trust regularly and update it as needed. An out-of-date trust can result in loved ones not receiving the assets the settlor intended them to have. Yet another potential mistake is choosing the wrong trustee. Some trusts may be complex enough that it is better to appoint a corporate trustee instead of a family member, or a family member might be appointed as a co-trustee alongside a professional.