Estate Planning
What is an Estate Plan?
One phrase that I hear a lot is “I don’t have an estate, so I don’t have to plan”. In Nevada, if you leave assets in your name that exceed $25,000, those assets could be subject to probate. An estate is made up of everything that you own, including a home, other real estate, cars, checking and savings accounts, life insurance, personal possessions, furniture and other investments.
If something unexpected happened to you today, do you know who would take care of your young children? Do you know what would happen to your assets? Do you know who would make decisions regarding your health in the event you become incapacitated and are unable to express your wishes?
There is always an answer to each of the questions above, but whether you or the State of Nevada gets to answer these questions comes down to estate planning An estate plan is a set of instructions for administering and distributing your estate at your death. A good estate plan may also include instructions for your personal and financial care should you become disabled prior to death.
The scope of your plan will depend on the level of assets and the complexity of those assets. An experienced estate planning attorney wants to ensure his or her clients are confident they have made the best decision regarding their estate plan so that they know their families are adequately protected.
What is included in an Estate Plan?
The following documents may be included in an estate plan, although not all of the documents will necessarily be included in every estate plan:
- Last Will and Testament—A will is the main component of every estate plan, whether a trust is also established or not. Those with minor children will also need a will in order to designate a guardian for the children.
- Durable Power of Attorney—A Durable Power of Attorney designates a person to act on the behalf of a person who becomes disabled. If there is no Power of Attorney, a Nevada court could decide what will happen to any assets. A person with Power of Attorney can transact real estate deals, enter into financial transactions and make other legal decisions on behalf of the disabled person.
- Beneficiary Designations—Because some assets are able to pass to heirs without being listed in a will or trust, such as life insurance or a 401(k) plan, those assets require primary beneficiary designations as well as contingent beneficiaries.
- Letter of Intent—This document is left to the executor or beneficiary, defining what is to be done with specific assets; some letters of intent also include funeral details.
- Advance Health Care Directive—An Advance Health Care Directive consists of 2 components: 1) a Health Care Power of Attorney in which you designate another person to make healthcare decisions for you in the event you become incapacitated; and 2) a Living Will in which you declare your wishes with respect to end-of-life care and organ donation.
- Guardianship designations—These documents will designate a guardian for minor children and a guardian for an adult who has become incapacitated.
- Trusts—Trusts have many benefits over wills, however whether a trust is the best way to go for any individual will require the assistance of an experienced Nevada estate planning attorney. A revocable trust can be changed by the person making the trust at any time for any reason. An irrevocable trust offers important tax and long term care cost benefits, but cannot be altered once made.