Attorney’s Experience Makes a Difference
One of the most important aspects of setting up your Nevada trust is using an experienced trust attorney to draft the agreement. Trusts laws are complex and nuanced. Your attorney should be familiar with State and Federal laws as well common law relating to the type of trust you plan to establish.
A great trust attorney will spend time understanding your wishes, even if they are complicated. The agreement they draft will ensure your wishes will be carried out. They will also learn about your beneficiaries and recommend ways to prevent foreseeable problems such as not giving young adults access to large sums of money, spendthrift provisions, asset protection against children’s future divorces, and care for children with special needs.
Finally, a good trust attorney will take the time to explain things you need to do, such as how to title your assets so they are owned by the trust and how the trust fits into your overall plan.
Is a Will-Based Plan or a Trust-based Plan Best?
A testamentary trust established by your will may be “Penny wise and pound foolish.” Testamentary trusts require the will to be probated which takes time, costs money, and makes your assets and beneficiaries a matter of public record. Will-based plans can be useful for young families on limited budgets because they will probably revise their plan later. For mature clients, a trust-based plan is usually best.
If you establish a trust and transfer most of your assets to it prior to your death, the majority of your estate will avoid probate, your heirs receive their inheritance quickly, your assets and beneficiaries will not become a public record, and the estate won’t be subject to probate fees.
The Cost to Set up a Nevada trust
The cost to set up Nevada trust includes two factors:
- The cost of preparing the documents
- Administration fees for managing trust assets
The cost of preparing documents varies based on the complexity of the agreement. A trust can be as simple or complex as you would like to make it. If you set up a Living Trust and you are the Trustee, there will not be any administration fees during your lifetime. Trusts with a Trustee who manages the assets pay a percent of the assets under management to the Trustee.
Nevada trusts for non-residents must be at least partially administered in Nevada which may increase the cost for non-residents.
When Should I Revise My Plan?
It’s important to keep your estate plan up-to-date. If you marry, divorce, lose a beneficiary to death, or if a new person is born or adopted into the family, you’ll want to review your plan to ensure it reflects your current wishes. The way your documents are worded will determine if these events change the way your assets will be distributed when the time comes.
Trusts aren’t just for the wealthy; trusts benefit people who own real property or have assets that would need to go through probate.
For more than 30 years, Attorney Lee A. Drizin has practiced in the areas of estate planning, probate, trusts, guardianship and real estate matters representing clients throughout the state of Nevada.
Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.