Who Needs A Trust In Nevada?
A trust can be useful to nearly every family in Nevada. If you own any kind of real estate – and a majority of families do have at least the family home – then that house would be headed toward the probate process. With a little bit of preplanning, we can save the family a lot of time and expense by bypassing that probate process and leaving the lawyers, accountants, appraisers, and the court out of the equation.
As I’ve said before, it can all pass to the next generation or whoever you direct in a very quick and efficient way. The new trust manager or successor trustee can have the death certificate in one hand and the trusts in the other and they can step right into your shoes and take care of business. The creation of an estate plan is really for the beneficiaries and not for the planner. If you really want to make it simple for your family that’s why you do the planning.
Can I Or Should I Have More Than One Type Of Trust?
You definitely can have more than one type of trust. Whether you should is really an individual analysis and there are a thousand different situations for every family. Sometimes you’ve got unmarried individuals and non-traditional families. That could be a situation where they would benefit from the separate trusts, so they can feel the security of knowing that even though they’re with a second partner, they can still make sure that their children are taken care of. There are asset protection trusts. Sometimes we don’t want to put everything into an asset protection trust because we don’t want the loss of control that comes with that type of trust. It really comes down to each individual situation.
For most families a single trust is adequate. With more complex situations where we want to do some kind of charitable giving or asset protection or some type of investment, we might need to talk about setting up more than one trust for different purposes.
What Are The Different Types Of Trusts Available And Their Purposes?
For most families the basic revocable living trust is adequate. There’s the standard scenario of a husband and wife leaving everything to each other and then when the second one dies it passes down to other beneficiaries. You might want a single trust to split into two different trusts upon the death of the first person – one to take care of the surviving spouse and one to flow down to a different family or a charitable trust. There are tax planning concerns that can go into it. We’ve also talked a little bit about asset protection trusts. Those are very effective at protecting assets from creditors but they do have their downsides which you really do need to understand carefully before you jump into them.
A trust is a very flexible tool. You can do almost anything you can dream of with one as long as it’s not violating some other law. They’re really very flexible.
Is A Will Just As Good As A Trust? Do I Need Both?
They are two different animals. The will is the way we’ve been doing it for over a thousand years and it’s a basic document that only does one thing – it declares where the property of the deceased should go. That whole process is administered by a judge, and it can take between six months and a year and a half. There’s no privacy – that will is published for the public to see, for all the creditors to see, and notices go out to literally everyone connected to the estate. It can be a drawn-out process. The trust is a more modern way to get to the same place without all the hurdles and expense. The trust is a little bit more work upfront, but a lot less of an ordeal for the beneficiaries. The cost of a trust is a small fraction of the cost of a full-blown probate. A million-dollar estate could cost five figures to probate. The cost of a trust can be as little as a couple of thousand dollars.
The other thing is that a trust can speak for you. For example, if you’re incapacitated, you’re hospitalized and unable to manage your own affairs, then a designated successor trustee can step in and access the money of the estate to pay insurance, to pay bills, and to keep the mortgage paid. A will really do nothing whatsoever for you unless and until you have passed on.
For more information on Need For Trusts In The State Of Nevada, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (702) 899-8989 today.
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