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.
Parents in Nevada and throughout the country may have the intention of leaving money or other assets to their children. However, it doesn't necessarily mean that those children can manage an inheritance effectively. This could stem from a lack of maturity, a substance abuse problem or a number of other scenarios that may be beyond a parent or child's control. To protect a child from spending an inheritance in a short period of time, it may be worthwhile to create a spendthrift trust.
For single parents in Nevada and elsewhere, it is important to have an estate plan in place. This is because a minor child will still need to be cared for in the event that a mother or father passes on. An estate plan may allow a parent to determine who the child's guardian will be and how he or she should be raised. It can also allow a parent to create a trust to provide financially for a son or daughter.
One of the biggest challenges for some people in Nevada who are creating an estate plan may be dealing with family dynamics. If not attended to, conflict can lead to litigation, and ultimately, a person's wishes may not be carried out. However, there are steps that can be taken that may prevent this.
One common error people in Nevada might make regarding an estate plan is having one that family members cannot access. People may encrypt an estate plan on a computer or place it in a safe deposit box. An attorney may be able to help a person plan how to best store the estate plan that allows for both security and necessary access.
Estate plans sometimes use Nevada trusts to achieve goals like privacy or reduction of estate taxes. Heirs could also benefit from trusts because these entities shield assets from creditors and divorces. A trust by its nature must have a trustee to manage assets and distribute funds according to the terms laid out in the trust documents. The trustee can be a family member named by the benefactor, an attorney, or an institution like a trust company. Although people might feel inclined to select their spouses or children as trustees, an outside party could present the best choice.
It's not unusual for parents in Nevada to instinctively think of a will when estate planning is discussed. Part of the reason for this is a lingering assumption that trusts are only for wealthy individuals, or that they are just too complicated. However, there are several advantages a trust can offer any parent looking to protect assets that can't be offered by a will.