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.
As many Nevada residents may know, there are several ways to save money on taxes. In some cases, the family will pay a lower estate tax and, in others, the asset owners will owe less in income tax. Knowing the intricacies of such opportunities and using them may be beneficial.
When people create trust accounts in Nevada, they normally do so with specific purposes in mind. There are certain common errors about which people should be aware so they do not make them, thereby subverting the purposes they had for starting the trust to begin with.
Nevada and 12 other states provide various legislation to help individuals protect their assets through the use of trusts. More states have begun to embrace these special kinds of trusts in order to build upon existing financial planning methods and to attract foreign capital. Asset protection trusts do not actually hide assets or avoid income taxes. However, they may be able to reduce the impact of income taxes in certain limited circumstances or in conjunction with other estate planning methods.
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.
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.
Individuals in Nevada who are planning their estate may wonder whether they need both a living trust and a will. A living trust should be accompanied by a will because there is still a need to distribute any assets that are not accounted for by the trust.
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.
The creation of a trust can be beneficial in estate planning for persons in all walks of life. While many consider a trust to be a tool reserved for people with very large estates, the truth is that a trust may also be a good choice for people with more moderate assets, according the National Association of Financial and Estate Planning.