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 Nevada residents are planning their estate, they might first think about how they can provide for their children or a favored charity. However, for many people, pets are a beloved part of their lives, as close as a family member and with no ability to provide for themselves. Many pets can live long lives, and their owners want to make sure that the pets will continue to enjoy a good life even after they are no longer personally able to provide it. People can include their pets in their estate plan in order to help protect their animal companions' future.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 likely changes the tax treatment of inherited IRA accounts. The legislation was approved in the House and will likely be approved in the Senate as well. Previously, Nevada residents could transfer an IRA to beneficiaries who weren't spouses. Those beneficiaries could then stretch distributions throughout their expected life spans.
For many Nevada residents, estate planning is not something that is considered to be a priority, especially when the person is healthy. However, it can suddenly become an issue if the person falls seriously ill. In other cases, the person may become involved in a serious accident and not survive. If this happens, the person's remaining family are left to deal with the person's estate.
A person in Nevada who is creating an estate plan and is concerned that an heir might be irresponsible with an inheritance may want to consider setting up a spendthrift trust. This allows the heir to receive distributions from assets in the trust, but a trustee controls when those distributions are made.
A popular tool used to save for retirement is an individual retirement account. If a Nevada resident decides to use an IRA, they will have to determine where the funds should go when they pass away. One way to ensure that IRA funds are handled according to one's wishes after death is to designate a trust as the IRA beneficiary.
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.
Estate plans can be used to help surviving loved ones manage a deceased individual's estate. In fact, wills and trusts could help eliminate stress and make the grieving process a little easier. However, Nevada estate owners should take care to avoid making certain mistakes.
Nevada residents should consider an estate plan as an essential component of a well-rounded financial strategy. The use of an estate plan can also give them a measure of relief and reassurance in knowing that they have done what is necessary to protect assets for their heirs.
More and more people recognize the advantages of estate and wealth planning that utilize Nevada law. According to a client advisor and vice president of a trust company, Nevada is among the friendliest states when it comes to the treatment of trusts. Establishing a trust in the state can act to increase family wealth, make estate planning more flexible and protect assets from creditors.