Some Nevada parents who are planning their estate might want to consider creating a trust to pass assets on even to their adult children. While it is not uncommon for people to create trusts for minor children, there are a number of reasons to do so for adults as well.
When it comes to revocable living trusts, it's important that Nevada estate holders use these legal devices to their full advantage. Otherwise, they will incur a waste of legal fees and heirs will not be able to fully benefit from the trusts.
There are a number of federal tax law changes associated with the Tax Cut and Jobs Act passed in December 2017 that can be relevant to people in Nevada who are working on their estate plans. The law went even further than previous tax changes to remove gift, estate and generation-skipping transfer taxes from most wealth transfers associated with death. As of January 1, 2018, the exemptions for all three of these taxes rose to $11,180,000 for a single person or $22,360,000 for a married couple. The amounts are also scheduled to rise each year in line with inflation.
Nevada residents who have already established one trust may want to create a second one. Unlike with wills, which usually include provisions that stipulate that the most recent will revokes all earlier ones, the creation of a new trust does not cancel out prior ones.
People in Nevada might want to take another look at their estate planning after the passage of the tax bill at the end of 2017. This bill raises the estate tax exemption for individuals to more than $11 million and for couples to more than $22 million. This means that some people who have created an estate plan that uses strategies to avoid estate tax may no longer need those strategies. In particular, married couples might simply leave the entire estate to a spouse. However, in some cases, there may still be good reasons to continue using bypass trusts and other tools.
Business owners in Nevada may be aware of the importance of estate planning for their personal belongings and properties. However, estate planning can be just as important to protect the longevity and well-being of a business. When the principal of a business passes away, it can be too easy for an active concern to slide into inactivity.
There are multiple factors Nevada residents should consider when trying to determine if they need a trust. Despite popular belief, trusts are not intended only for the wealthy, and individuals with any amount of assets may find that establishing a trust can be useful.
Disputes over estate plans may be more likely to happen among blended families in Nevada than in families in which there are not stepchild and stepparent relationships. These disputes may be more common in families with stepmothers, in part because women are more likely to outlive men. One survey found that only about one in five adult children reported feeling close to their stepmothers. There are several common reasons that a dispute over an estate involving a stepmother might happen.
Nevada residents who are concerned about their privacy or want to minimize taxes may want to place assets into a trust. A trust can be controlled either by the person who creates it or on behalf of that person through a trustee. Trusts are generally considered to be revocable or irrevocable. As the names imply, revocable trusts may be altered while irrevocable trusts generally cannot.
The potential of bitcoins to store value has caught the attention of some investors in Nevada. As a digital asset with a private password, it requires special attention when someone wants to pass the asset to another party. Estate plans also need to formally address other forms of digital assets, like social media and PayPal accounts, to ensure their timely distribution or simply to let heirs know that they exist.