While estate planning is important for all adults in Nevada, it is critical to do so properly. A common mistake that people make is to leave assets directly to minors. A better idea is to leave the asset to a trust that a minor child or grandchild is the beneficiary of. If a trust is created, it needs to be funded before its creator passes on. Otherwise, assets that were intended for the trust may still need to go though probate.
In Las Vegas, Nevada, the distribution of property is often part of a detailed estate plan. Although some people detest the thought of establishing estate plans, sound financial planning regarding estates can offer peace of mind. Some people avoid thinking about inheritance issues because of superstitious beliefs. These superstitious individuals believe that making their wills may cause bad luck or even death. The fact is that people eventually die regardless of whether they have wills or estate plans.
Some people in Nevada are ardent do-it-yourselfers when it comes to everything from household tasks to taxes. But a DIY approach to preparing a will could contribute to some oversights or missteps that may be problematic for loved ones left behind. One potential problem is that some sites may omit important companion documents, such as a financial power of attorney and an advance healthcare directive, or only offer them with higher-priced packages.
People in Nevada who have remarried but have children from a previous marriage need to take steps to ensure that both their spouse and children are taken care of in the estate plan. A simple will is usually not sufficient in these situations. If a person leaves everything to the spouse, that spouse may leave nothing to the children.
People inheriting various assets in Nevada could enjoy certain tax advantages due to the concept known as step-up in cost basis. This term refers to an asset's increase in value while someone possesses it. A person who buys a stock for $2 a share and then sells it while still alive for $10 a share would owe capital gains taxes on the $8 per share increase in value.
An estate plan is a crucial tool for individuals who want to have control over what happens to their assets if they become incapacitated or die. Without at least a will, financial power of attorney and advance health care directive, Nevada probate courts will make decisions over which a person could have had complete control. By planning ahead, no one has to rely on case law or guesswork to determine what is best for him or her at the end of his or her life.
An estate plan can be a good thing for any adult living in Nevada. This can be true even for individuals who don't have children. Creating a trust is beneficial for those who want to keep the details of an estate private after they die. It can also be helpful for those who are looking to avoid probate or otherwise looking to protect their assets.
As more assets are being held or stored online, it can create challenges for Nevada residents when it comes to estate planning. For example, an individual must remember to divulge the username and password of any account that is held online. Furthermore, there may be questions over who owns a digital asset and who may access it after a person dies. These are important questions to answer as digital assets may have real value.
Creating a will or comprehensive estate plan is not something that adults in Nevada should be apprehensive about. It can act as a form of insurance against an unexpected event such as an illness or a death in the family. Furthermore, estate planning is an effective way for business owners to protect themselves in the event of a divorce.
Nevada residents may have a will that plays a role in determining where their assets go after they pass. However, a will by itself is not necessarily an estate plan. The estate plan is everything that a person does to manage their assets now and in the future. It can also help ensure that children and grandchildren are taken care of.