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Reasons to consider creating a trust

As Nevada residents consider their mortality, the distribution of their assets may become a priority. Without planning, it can be difficult to ensure your family observes your wishes. Establishing a trust offers several benefits to help guide decisions around your estate.

What is a trust?

A trust is a legal agreement that transfers ownership of assets to a third-party trustee. This individual maintains the assets on behalf of the beneficiaries and is responsible for distributing them according to your wishes.

Most trusts fall into two categories: revocable and irrevocable. You can make changes to a revocable trust while you are alive. Irrevocable trusts are fixed once they are in effect.

Spelling out your expectations

You can include specific conditions for asset distribution when you draft the trust. For example, the trust might hold the dispersal of funds for a beneficiary until they reach a certain age.

A revocable trust also provides adaptability. This estate planning model allows you to adapt to new situations among your beneficiaries such as marriage, divorce, or death.

Tax benefits of a trust

An irrevocable trust may shelter some of your assets from estate taxes. Since the assets belong to the trust, it changes how the government calculates taxes on contributions and distributions.

Avoiding probate

A trust may streamline asset distribution after your death. Assets in a trust avoid the delays of probate because they have already been verified during the creation of the agreement.

Wills and much of the probate process are part of the public record. Establishing a trust can help maintain privacy around your assets.

Trust benefits during your lifetime

Revocable trusts can help you and your family if you cannot handle your assets while alive. The appointed trustee can manage your assets to ensure your bills and taxes are paid, preventing your loved ones from inheriting unexpected debt.

Estate planning is an important step in caring for your loved ones. Creating a trust can minimize complications after you are gone.