Estate planning is a complex process for many Nevada residents. There are a lot of emotions involved, along with complicated steps.
Because of this, it’s not uncommon to forget essential estate planning steps. There are a few essential things that you should make sure your estate plan covers though.
Who makes decisions if I become incapacitated?
It’s a nightmare scenario for many families, but it’s important to know who will make decisions if you can no longer do so. You’ll often need a healthcare proxy and a power of attorney.
A power of attorney will manage your finances and legal affairs, while a healthcare proxy will make medical decisions. Sometimes they can be the same person, but you may want two different individuals other times. Regardless, they will make decisions based on the living will you’ve set up in advance.
Will my beneficiaries be taxed?
The biggest question for many high-value estate owners is how their loved ones will be taxed upon inheriting the estate. Inheritances and sudden property acquisitions can often cause your beneficiaries to be taxed at a higher rate, eating away at what’s been set aside for them.
Many estate plans are created to avoid that process. Estate planning tools, like trusts, exist as a way to help avoid estate tax (and other taxes).
Trusts give you more control over your assets and can be essential when you’re making plans for children under 18. Whether you need these tools is entirely up to you and your family.
There are many other things to consider and prioritize depending on your unique family makeup. These are just some of the essential questions to help you start the estate planning process.