Nevada residents may wish to know about a specific issue that many parents face when leaving assets to their children. When the parent has a disabled child, care needs to be taken in estate planning to avoid unforeseen consequences.
In Nevada, a revocable living trust is sometimes used as an estate planning alternative, particularly for probate issues that can't be solved with a will. Before deciding on using a revocable living trust, an individual should take certain factors into account.
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.
At times, a person may want to leave a trust for the benefit of an intended beneficiary who, for whatever reason, is unable to control his or her own spending. In those cases, the person creating the trust may do so under the law by establishing a spendthrift trust.
Nevada families of mentally ill or disabled individuals may wish to learn about special needs trusts. This type of trust is designed specifically for individuals who may be unable to care for themselves. A family member usually manages the trust for the beneficiary.
Individuals in Nevada who are estate planning may wonder about the role of trustees and how they will handle debts and expenses. The trustee must take responsibility for valuing all assets as soon as possible after an individual's death as well as for assessing all debts. A trustee also acts as a fiduciary and may be a beneficiary as well.
Management of your trust is important as you plan not only for your future but also for the futures of those who will inherit your estate. However, deciding on the administration of your trust can be challenging as you select a trustee. Confidence is an important aspect of this decision, but it is also important to evaluate the management abilities of a fiduciary to ensure that decisions will be made objectively and beneficially.
Nevada parents with special needs children may be interested in a type of trust that enables them to save for the child's future without interfering with the governmental benefits the child may receive. This peace of mind extends to other family members so they can contribute to the trust fund whenever they are able to do so.
A revocable living trust is an option to consider when doing estate planning. Creating such a trust can get your assets to beneficiaries much quicker than with a will, which has to go through probate court.
A trust may be used to help protect a Nevada resident's assets as well as provide a degree of privacy after the grantor dies. Unlike a will, the use of a trust helps to avoid expensive and public probate proceedings. However, many people think that such an estate planning document is too expensive to create or is only for people who have large estates.