When people in Nevada consider creating an estate plan, they have many different goals. Some hope to leave money to a favorite charity, while others seek to ensure that their kids are well cared for. The good news is that, in every case, there are estate planning documents that can be customized to fit the needs of the person encountering the process.
As many readers in Nevada know, recent discussions in the national government have been contentious as Congress sought to avoid the fiscal cliff. One of the most important issues to those considering planning an estate has been the estate tax that was set to adjust at the start of the new year. As we have discussed before in this column, under the Bush tax cuts the estate tax was set to revert to the 2001 level of a $1 million exemption.
People in Nevada may be interested to learn that many of the difficult challenges faced by heirs and beneficiaries going through the probate process can be avoided with action by the person creating an estate plan. These actions include a review of all estate planning documents for accuracy and adequacy. Such an effort can save those who may inherit from an estate thousands of dollars in some cases, according to a report.
Many in Nevada who have begun to plan an estate have learned that there are rules that apply to the construction of a will. This most basic of estate planning tools is used commonly for those in our state who have assets to distribute and guardians to appoint. With this type of document, many of the wishes of an individual can be explained to a person's heirs.
Readers in Nevada may be interested to learn that the heirs of George Lucas, famed director of the Star Wars movies, may have avoided potential tax problems and planning issues over his high value estate recently. This may be because the director recently sold his movie business for more than $4 billion dollars to Disney. The sale was made in stock and cash and is a part of an estate planning move that may have been designed to limit some taxes.
Many Generation Z people in Nevada and across the nation expect to inherit money from their parents. This may lead some of them to fail to appropriately save for their future, one report indicates. That could be bad news for some parents who, in the study, were less likely to believe that their children would inherit wealth from their estate after their death. However, many kids in the study were already saving for immediate needs such as college and living expenses.
There are many issues that Nevadans must consider as they begin to write an estate plan. As they go through the planning process, it is always the case that the person creating a will or a trust seeks to ensure that their wishes for asset distribution are made apparent to their heirs and survivors. These wishes may not always be popular with all of the potential heirs, especially those who do not stand to inherit from the person creating the plan.
Having a blended family can lead to big challenges for a person considering estate planning in Nevada. The estate plan that is created must reflect the wishes of both spouses and provide for a surviving spouse after the death of one of the spouses. Without effective planning, families may end up in a legal battle over the distribution of assets after a death.
A recent out-of-state probate court decision has brought to light many of the changing laws that govern estate formation. What is worth noting for Nevada residents is the importance of keeping an estate current with the constantly changing tax laws that surround the distribution of assets. This upkeep can be crucial to minimizing the taxes that estate distributions can be subjected to.
For many in Nevada and elsewhere, there has been a change of perspective on the amount of inheritance that they may be able to leave their heirs at the time of their death. This may be due, in part, to changing economic times and the longer lifespan that many can expect. The shift has also changed estate planning for many, as they consider how much money they will need to support themselves into their 80s and beyond.