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Nevada estate planning could benefit from use of trusts

On Behalf of | Nov 7, 2012 | Heirs & Beneficiaries

Many people in Nevada and across the nation believe that they do not need to create an estate plan because of the relative small size of their estate. However, those folks may be surprised to learn that the amount of savings they can achieve in taxes by creative estate planning could be considerable. One reason for such estate planning is due to the fact that the estate tax exemption will return to the relatively low figure of $1 million in 2013 without Congressional intervention.

It is easy for a person in Nevada to get to that $1 million mark, says at least one authority. Factoring in investments, life insurance, retirements and property, the number is attainable for many in our country. Trusts may be a way for these individuals to take advantage of tax benefits that in some cases few are aware exist.

There are many different types of trusts that can be used in estate planning in Nevada. An individual who is estate planning may find that they can take advantage of irrevocable Qualified Personal Residence Trusts that allow an individual to remain in their home while avoiding some estate taxes after their death. This happens because the asset, in this case the family home, is placed into the trust and is no longer owned by the individual.

Others in our state may find that they wish to give gifts to their heirs during their lifetime. In fact, an individual may give a gift of $13,000 this calendar year to a person without paying gift tax. This is a useful estate planning tool that some find worth utilizing. There are many different estate-planning tools available in our state. An individual may wish to review all such available trusts as they consider if they should create an estate plan for themselves and their heirs.

Source: Fox Business, “Plan Your Estate Like Romney to Beat Taxes,” Judy Martel, Oct. 25, 2012