Parents of adult children in Nevada who have significant assets might wonder what they should do with their assets in an estate plan to protect them for their children. An example might be a couple who has about $1.5 million in assets and no debt, including no mortgage.
That couple would have several options depending on their goals and the family situation. One option might be to create a lifetime trust to support the surviving spouse. When that spouse dies, the assets could also go into trusts for the children. They might then get access to the trusts at a certain age or at some other milestone.
Some couples might choose instead to have the assets support their grandchildren. One or more trustees could manage the assets. Trustees have significant fiduciary responsibilities that could include dealing with taxes, making investments and distributing assets based on the terms of the trust. The couple may benefit from talking to an attorney about how to design an estate plan that best meets their goals.
There are a number of factors to take into account. For example, one child or grandchild might be irresponsible with money. If this is the case, it could be important to appoint a trustee who can make good decisions about when to make distributions. It is particularly important in this situation to choose a trustee who can manage emotional issues. Another complication might arise if a beneficiary has special needs and receives benefits from the government. A special needs trust can pay directly for certain items, such as rent or other needs, and the person could continue receiving benefits. Another consideration might be how much protection the trust should offer. An irrevocable trust means the trust creator has less control over the assets, but it can also protect the assets from creditors.