An estate plan can make it easier to manage your affairs today as well as after you pass away. For example, a will can dictate who gets your Nevada home or who should take care of your children if you die before they reach adulthood. A trust may enable you to pay bills, manage property or take care of other tasks if you become incapacitated. However, these documents are only effective if they are structured properly.
Not having an estate plan is the biggest mistake of all
Without a will, your assets will be allocated per state intestacy law after your death. If you don’t have a valid trust, you won’t be able to take advantage of the privacy it can provide yourself and your family. In some cases, waiting too long to create a plan is just as problematic, as it may limit your options. If you are not of sound mind, it may not be possible to create or execute any estate planning documents at all.
You need to manage assets strategically
The person who manages your estate or oversees your trust needs to be someone who pays attention to detail. Furthermore, they need to be of sound mind and capable of executing your estate plan in accordance with your wishes. If possible, make gifts prior to your passing to reduce the value of your estate for tax purposes. However, avoid transferring the title to a home or other assets that you might still need while alive.
Avoiding estate planning errors may reduce the risk that a judge invalidates a will, trust or other documents. It may also minimize the risk of a legal challenge, which could delay the closing of your estate and strain relationships between surviving family members.