Many people in Nevada create trusts as part of a comprehensive estate plan to leave their assets to beneficiaries. An important part of this process is putting assets into the trust.
A trust beneficiary is allowed to receive a copy of the trust document that he or she is named in. This is true in Nevada and most other states. At a minimum, the beneficiary is entitled to receive information pertaining to his or her inheritance contained within that document. The first step in resolving a trust dispute is for the beneficiary to contact the trustee about the problem.
Some people in Nevada who are creating an estate plan might be interested in creating what is known as a silent trust. This differs from most other types of trusts because in a silent trust, a trustee does not have the same obligations to keep beneficiaries informed.
Nevada residents who want to develop a successful estate plan should make sure that the plan efficiently transfers their wealth to their heirs while reducing any taxes that may be assessed. One particular legal device that can help accomplish this is an irrevocable trust.
Parents in Nevada and throughout the country may want to leave money to their children for educational purposes. Generally speaking, this is best done by creating a trust. Individuals can choose between a pot trust or creating a separate document for each child. With a pot trust, all the beneficiaries will request money from one lump sum until there is no more money left. However, this could mean that one child gets more than his or her siblings.
Estate planning in Nevada is a continuing process. For many people, there is follow-up required even after a will has been drafted and trusts, living wills or powers of attorney have been established. People should make sure that beneficiaries are properly designated, trusts are funded and the terms of the estate plan are made known by certain people. It's important that estate plan information is accessible, and changes in circumstances often necessitate updates to the plan.
For some in Nevada and throughout the country, charitable giving will be an important part of an estate plan. However, it is important to know how to incorporate it in a way that makes sense. First, an individual will want to consider the type of charities that are worth donating to. Typically, an individual will want to give to a cause that has a particular meaning in his or her life.
The main reason many Nevada residents may create an estate plan is to implement tax-saving strategies that can limit the estate taxes their heirs may have to pay. However, there are other, non-tax reasons estate planning should be used.
A trust is a relatively common estate planning tool that individuals in Nevada and throughout the country can use. Their structure will largely determine how they are taxed and how they are controlled. It will also play a role in determining if assets in the trust are protected from creditor claims. Generally speaking, a trust can be defined as revocable or irrevocable. A revocable trust can be amended or terminated at any time by the person who has created it.
When Nevada residents think about planning for the future, they may be concerned about how estate taxes could affect the beneficiaries of their estates. There are a number of ways that people can help to reduce the tax burden by taking some steps to plan ahead. One of the first steps that many people take is to distribute part of their estate during their lifetime by making gifts. There is a federal lifetime estate and gift tax exemption of approximately $11.2 million dollars, twice that for a married couple. In addition, people can give away up to $15,000 annually to each recipient without needing to pay gift taxes.