Going through the estate planning process is essential if you live in Nevada and have assets, such as a home, stocks and valuables. It can designate the beneficiaries who receive your property and help you reduce estate taxes, which can occur when you die.
Knowing how estate taxes work is essential
One of the top benefits of an estate plan is its ability for you to limit the taxes placed on your estate when you die. Examining your situation and its association with federal estate taxes can help you limit the amount paid when you die. Doing so is a great way to ensure your beneficiaries receive the most money possible.
Using a trust can be beneficial
Another advantage of using an estate plan is its ability to place your assets in a trust, avoiding probate. When your beneficiaries don’t have to deal with the court system to split your assets, it saves time, frustration and money. This action can help provide a fast distribution of your assets. When you create a trust, it’s managed by a trustee who is in charge of administering your wishes. Some of the responsibilities of the trustee can include tax filing.
Different types of trusts are available
You can choose the type of trust you’d like to use in your estate plan by matching your needs with the trust’s specifications. Here are four trusts that are popular to use:
- A-B Trust
- Life Insurance Trust
- Charitable Remainder Trust (CRT)
- Qualified Terminable Interest Property (QTIP) Trust
After examining each of these trusts and how they can meet your requirements, you can determine the best one suited for the job.
When you’d like to ensure your assets get distributed correctly, using a trust can be highly advantageous.