Wills and trusts are two of the most basic elements of any estate plan. However, while the creation of a will or trust is straightforward in theory, there are many nuances that you must consider; otherwise, the document may not have the intended effect.
At Mills & Anderson Law Group, our knowledgeable Las Vegas wills and trusts lawyers have extensive experience helping our clients through the estate planning process.
We are immediately available to answer your questions and begin creating a custom-tailored will or trust that accomplishes exactly what you need it to.
Wills
A last will and testament, more commonly referred to as a will, is the cornerstone of an estate plan. While most people associate a will with outlining how someone wants their property distributed upon their death, wills actually do quite a bit more than that.
Through the creation of a will, you can:
- Decide who gets your property when you die;
- Identify a person to manage your estate;
- Select who will care for your minor children;
- Outline where your pets will live;
- Create a trust;
- Provide instructions for your digital assets, such as social media accounts and digital photos;
- Leave money to your favorite charitable causes; and
- Clarify funeral and burial instructions.
Of course, not everyone has the need to address each of these topics. This is why it’s important that you have a customized will tailored to your specific situation.
Nevada Will Requirements
The requirements for the creation of a will in Nevada are not overly complex. However, you must follow certain procedures, or a court may determine your will is invalid.
The requirements of a Nevada will are:
- You must be at least 18 years old; and
- You must be of sound mind.
Most people have a printed copy of their will. If so, you must sign your will in front of two witnesses that do not stand to inherit any part of your estate.
Nevada permits electronic wills as long as they contain your electronic signature. Additionally, you must sign in front of two witnesses, a notary public, or the will must have some “authentication characteristic.”
What Happens If You Die Without a Will in Las Vegas?
If you die without a will, you are said to have died “intestate.” While the terminology isn’t important, the effect of dying without a will can be severe.
If you don’t have a will in place when you die, the court will not know how you want your assets distributed. And for obvious reasons, courts cannot take the word of loved ones who stand to benefit from the court’s decision.
Instead, if you die without a will, Nevada courts rely on a set of default rules called intestacy laws. The Nevada intestate laws provide a way for courts to distribute your assets among your living loved ones. However, the intestacy laws are rigid, meaning there is no room for variance.
Below are a few examples of how the intestacy laws might play out:
- You leave behind a spouse and two parents but no children: Half of your estate goes to your spouse, and a quarter goes to each of your parents.
- You leave behind a spouse and one or more siblings: Half of your estate goes to your spouse, and the other half is divided among your siblings in equal shares.
- You leave behind a surviving spouse and one child: Half of your estate goes to your spouse, and the other half goes to your child (regardless of who the child’s other parent is).
- You leave behind a surviving spouse and two children: One-third of your estate goes to your spouse, and two-thirds gets divided up between your children.
As you can see, the intestate laws are very specific and may not comport with your desires. Thus, if you are considering drafting a will, it is best to work with experienced Las Vegas will lawyers. Our estate planning professionals can effectively guide you through the process, ensure that your will complies with state law, and ensure that your desires are clearly spelled out so there are no misunderstandings or feuds after you pass.
Trusts
Trusts are another common estate planning tool that you can use to accomplish all types of goals. In essence, a trust is a three-part relationship between the person creating the trust (the grantor), the person administering the trust (the trustee), and the people for whom the trust was set up to benefit (the beneficiaries).
Revocable Versus Irrevocable Trusts
Trusts come in many types.
However, all trusts are either revocable or irrevocable. Revocable trusts are more flexible in that they allow you to modify or even terminate the trust at any point during your life.
However, the benefits of revocable trusts are limited. Irrevocable trusts are inflexible, and once you create an irrevocable trust, you cannot modify its terms unless you have the consent of the beneficiaries.
However, irrevocable trusts have valuable benefits. They effectively remove trust assets from your estate, so they are not subject to estate tax and not countable for the purposes of a Medicaid application.
Additionally, irrevocable trusts are typically outside the reach of creditors, which makes them a good choice for those looking to protect their assets from the threat of litigation.
Trust Administration: Roles and Responsibilities
Having a trust doesn’t guarantee a smooth ride. Trust administration refers to the trustee’s ongoing responsibilities, which include managing the trust assets according to your wishes. This significant responsibility must comply with legal guidelines and ethical principles. Here are some specific duties of the trustee.
Managing Assets
Managing assets involves safeguarding trust investments, collecting income, and ensuring proper record-keeping. Like a responsible investor, the trustee must act prudently to protect the trust’s value.
Distributing Funds
The trustee follows the trust document’s instructions regarding distributions to beneficiaries. This may involve regular payouts, distributions upon reaching a certain age, or contingency-based disbursements for specific needs.
Fiduciary Duties
A core principle in trust administration is the duty to act in the best interests of the beneficiaries. Trustees must avoid conflicts of interest, maintain confidentiality, invest trust funds, and keep accurate financial records. The trustee must communicate effectively with beneficiaries, providing the necessary information about the trust and its administration.
Trust administration also involves managing any disputes or conflicts among beneficiaries or other parties involved in the trust. Transparency and accountability are essential aspects of fulfilling fiduciary duties.
Funding Your Trust
A well-crafted trust is only effective if it holds assets. Funding your trust involves transferring ownership of your desired assets—cash, investments, real estate—into the trust.
Here are some critical steps:
- Inventory assets. Identify all assets you wish to transfer to the trust, including bank accounts, real estate, and investment holdings.
- Titling assets. Retitle the assets in the trust’s name, following the specific legal requirements for each asset type. This ensures the assets become legally owned by the trust.
- Beneficiary designation updates. Review the current beneficiaries on your retirement accounts and life insurance policies. If you wish for these proceeds to flow into the trust, update the beneficiary designations accordingly.
- Consider tax implications. Transferring assets to a trust may have tax consequences. Consult with a tax advisor to understand potential tax liabilities.
You can minimize potential legal or tax complications and ensure proper funding of your trust by working with a Las Vegas trusts attorney who can walk you through the process.
What Can a Trust Do for You?
Trusts have many purposes, some of which are very specific. However, as a general rule, assets contained in a revocable trust do not need to go through probate. Probate is the legal process in which a court recognizes an individual’s death, appoints the personal representative named in the deceased’s will, and oversees the administration of the estate.
Before a court allows your personal representative to distribute any estate assets to your beneficiaries, the personal representative must settle all estate debts and may need to file a tax return. By transferring assets into a revocable trust, they can transfer directly to the beneficiary without unnecessary delay.
Irrevocable trusts have a wider range of benefits. In large part, this is because once you transfer assets into an irrevocable trust, they are no longer a part of your estate.
For example, an irrevocable trust can accomplish the following goals:
- Remove trust assets from the probate process;
- Protect trust assets from creditors;
- Reduce the taxable value of your estate;
- Remove life insurance proceeds from your estate; and
- Reduce your assets, so you can qualify for Medicaid.
Of course, these are just a few of the benefits of an irrevocable trust; there are many others depending on the situation. The trust lawyers in Las Vegas at Mills & Anderson can help you understand all the benefits a trust can provide to your family.
Specific Types of Trusts
The creation of a trust can help accomplish very specific goals that would otherwise be unattainable. For example, below are a few specific types of trusts and their benefits.
Special Needs Trust
For individuals with disabilities, a special needs trust offers a valuable estate planning tool. These irrevocable trusts provide financial security for vulnerable beneficiaries while protecting their eligibility for government benefits like Medicaid and Social Security.
Here’s how they work:
- Eligibility protection. Assets held within a special needs trust are generally not considered when determining eligibility for government benefits like Medicaid and SSI. This provision ensures that the beneficiary can receive essential support from the trust without risking the loss of eligibility for government programs.
- Supplemental needs support. The trust allows the trustee to distribute funds for expenses not typically covered by government programs. These may include improved housing, educational opportunities, specialized therapy, and other needs that enhance the beneficiary’s overall quality of life.
- Long-term security. If the primary caregiver is unable to continue providing care, a special needs trust can guarantee the beneficiary’s long-term security by providing continuous financial support throughout their life.
Establishing a special needs trust offers families peace of mind by ensuring their loved one has the resources needed to sustain a comfortable lifestyle. Knowledgeable Las Vegas trust lawyers can help you establish a special needs trust that adequately protects your relative.
Miller Trust
Miller trusts are commonly used to help those with excess income qualify for Medicaid benefits, usually in anticipation of the need for long-term care. A Miller Trust, also referred to as a qualified income trust, allows you to place assets into an irrevocable trust so that you can more easily qualify for Medicaid benefits. Miller Trusts must be irrevocable and must also meet additional criteria to be effective.
Spendthrift Trust
A spendthrift trust allows grantors to place all distribution decisions within the discretion of an independent trustee. In this way, spendthrift trusts help avoid a situation where the beneficiary squanders the trust assets, either because they are young, inexperienced with money, or suffering from a substance abuse disorder. Spendthrift trusts also prevent the beneficiary from selling or giving away their interest in the trust assets.
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Experienced Trust and Will Lawyers Near You – Schedule Your Consultation Today
The creation of a trust or will is essential to an estate plan. These documents can provide your family with certainty, regardless of what the future holds. If you do not yet have a complete estate plan established, or have questions about an existing plan, reach out to a will and trust attorney in Las Vegas at Mills & Anderson Law Group for assistance.
At Mills & Anderson Law Group, we have more than 40 years of combined experience creating customized estate planning solutions for our clients. We can meet with you to go over your objectives and quickly get started developing an effective estate plan that will provide you with peace of mind for years to come.
To learn more and to schedule a no-obligation consultation with a skilled wills and trusts attorney, you can reach out to Mills & Anderson through our online contact form.
