While people may have heard of A-B trusts, they may not know what these trusts are or why they are used. These trusts are established by married couples in order to help avoid double-taxation after one spouse dies.
Nevada residents with an interest in the estate planning process may wish to know more information about what happens to a person's debts when they pass away. Depending on the type of debt and who is involved, the answer may be complicated.
Nevada residents who are interested in the estate planning process may wish to know about one billionaire's legal battle to prove he is mentally competent. Given the circumstances, this kind of situation is relatively common in mixed families.
Nevada residents who are estate planning may wonder whether a will is the best choice. They might have heard that probate can be expensive and time-consuming. The probate process refers to the legal recognition of the will and the appointment of an administrator for the estate. This person's job is to inventory and distribute assets. Usually, the process is not lengthy or costly.
If there are no known heirs to an estate, or if there is no executor to an estate, a public administrator may be called in to protect it. In some cases, a public administrator might be named in a will to be the executor of an estate, or a judge might appoint one to be the executor. The latter scenario generally occurs if a named executor fails to act and part of or all of an estate may be at risk.
In a decision released on Feb. 13, the Internal Revenue Service set standards regarding issues about the gift tax, clarifying whether contributions to a trust are completed gifts. The letter also discussed whether the fair market value of property held in trust was included in a trustor's estate. This federal letter ruling may affect some estate plans in Nevada.
Las Vegas residents with an interest in estate planning issues may be interested in an article detailing one method for updating a trust after it has become irrevocable. This method may have tax consequences, good or bad, so professional guidance should be sought.
Many Nevada residents neglect to consider their digital assets like their social media profiles when they begin planning their estates. However, it may now be easier for Facebook users to dictate what will happen to their profiles in the event of their deaths with the introduction of a new feature on the social networking site.
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.
Disputes over the items a family member has in their estate when they die are common among Las Vegas families whether the deceased person had millions of dollars or died virtually penniless. Wills and trusts are effective ways to reduce the amount of discord after death but unless every heir has a clear understanding of what they are to receive as an inheritance, disagreements and even lawsuits may still happen. Robin Williams' estate was not exempt from family drama.