Balancing interests when managing trusts

On Behalf of | Aug 22, 2019 | Trusts

Trusts can be an important part of estate planning for many people in Nevada. These instruments allow people to pass on important belongings and assets with a higher level of privacy. They also offer a greater amount of discretion and control. A revocable trust can be used along with a power of attorney to make sure that the grantor’s assets are handled well throughout their life, even if they face incapacity or cognitive decline. It allows property to pass after death without going through probate courts, giving a higher level of protection to the decisions made by the person passing on their estate.

When creating a trust, a trustee is named. The trustee, who can be a trusted friend or family member or a professional like an attorney, owes obligations to the people named as beneficiaries of the trust. This means that the trustee of a trust must not simply follow all instructions by the creator of the trust, known as the settlor. In the case of a revocable trust, it can be undone at any time. Still, the trustee has a responsibility to think about the interests of the beneficiaries as long as the trust is in place.

Some states differ about how to handle this matter as an issue of law. In some places, only the settlor’s interests are primary unless he or she is incapacitated. In a case where the trust only passes on after death, it is questionable whether a beneficiary could challenge a living settlor over trust actions.

However, there are questions that may arise in case a settlor becomes incapacitated, especially if actions are taken to injure the interests of a named beneficiary. People may consult with an trust planning attorney about how to construct their trusts in a way that allows for maximum flexibility and protection.