Whenever someone sets out to begin the estate planning process, there may be more options on the table than they realize. Leaving assets behind for family members can be a complicated process in and of itself. One option that can give someone flexibility in how they leave funds behind is the option of creating trusts. Anyone in Nevada looking to update or start estate planning may be surprised by the versatility of creating trusts.
Trusts are ideal if someone does not want to leave a bulk amount behind for whatever reason. While this may be perfectly acceptable for some, others may find it detrimental. One way to ensure some sort of responsible use of a trust is to distribute amounts at set periods of time. Giving a payout at the age of 25, then 30, then 35, and so on, can give everyone peace of mind over the use and fate of money.
There are plenty of individual reasons why someone may choose to not leave a bulk amount behind. If a child or beneficiary has had issues with substance abuse, gambling or any other financial mishaps, stipulations can be placed on payments of a trust. For example, a trust can be drafted to be paid only after certain criteria are met.
In Nevada and elsewhere, trusts are appealing because the owner has a semblance of control and flexibility. Estate planning is highly personal, and the creation of a trust is one way to express that creativity and individuality. Taking the time to explore options and discuss decisions with beneficiaries is one way to make the process smoother, less contentious and less likely to cause fights or disruptions among family members.
Source: cnbc.com, “Heir tight: The do’s and don’ts of creating rock-solid trusts“, Jennifer Woods, May 28, 2014