One of the most common assets that an individual will hold is a life insurance policy. However, they can be problematic when it comes to estate planning. One way to get around these issues is to create an irrevocable life insurance trust. What the trust will do is hold the insurance policy outside of the estate. At the same time, it still allows an individual control over who gets to benefit from the policy.
For many individuals, estate planning and trusts can be confusing. The idea of avoiding probate is attractive, but reviewing types of trusts may seem challenging, especially as special needs trusts are researched. For many, a revocable trust is the most appropriate option. This type of situation is ideal for safeguarding an estate while allowing the testator to maintain control of the assets. Other types of trusts should be researched based on unique family dynamics or financial concerns.
When it comes to estate planning in Nevada, many people don't understand that it's an ongoing process and that it requires careful thought and planning. It's not enough to simply create a will and trust that the property will be divide in accordance with the plan. The state may step in and have the estate go into probate, and this can become an expensive process for the heirs. One solution is to invest in a revocable trust and have assets retitled into the name of the trust. With the additional measure of a "pour over" will, additional assets such as jewelry and cars can be gathered into the revocable trust and allocated in accordance with the decedent's wishes.
Nevada fans of Robin Williams may be interested in how the actor set out plans for the distribution of his estate. Williams died of an apparent suicide August 11, according to police. The 63-year-old Oscar-winning actor had battled substance abuse problems and depression for quite some time.
Asset protection can be achieved for Nevada residents when planning ahead. This statement is especially true for individuals with large estates and significant amount of wealth accumulated throughout their lives. Proper steps have to be taken to distribute the assets among the family members, friends, charities or business partners.
Many Nevada residents know that celebrities have little privacy during their lifetime. Lou Reed, the consummate performer, was on the world's stage for decades as a guitarist with The Velvet Underground, songwriter and solo performer. Yet, when he died in 2013, he may have been able to keep the distribution of his estate private if he had chosen to use a revocable living trust instead of a will.
Nevada residents interested in setting up a trust may realize the importance of making the right choice when choosing the kind of trust fund that suits their needs. The reasons someone sets up a trust fund differ, and understanding the types of trusts and their characteristics is important.
When looking for a relatively easy way to transfer assets to beneficiaries while still maintaining privacy and keeping costs at a minimum, many Nevada residents find that a trust is the appropriate tool. By establishing either a revocable or irrevocable trust, the individual is able to dictate exactly which assets or investments are to be received by each beneficiary. Careful trust planning can effectively transfer assets while avoiding the cost and time associated with probate.