Kerr SimpsonKerr Simpson2024-03-14T03:02:38Zhttps://www.sterlingkerrlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1402527/2022/01/cropped-favicon-1-32x32.pngOn Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517172024-03-14T03:02:38Z2024-03-14T03:02:38ZIf you have a beneficiary with special needs, it is important to consider them as you make your estate plan. One thing you may want to think about is setting up a special needs trust. This gives you the ability to set aside money for that beneficiary so that their needs can be met after you pass away.
Of course, there are alternatives. You may be considering leaving a significant inheritance to that beneficiary, perhaps by putting it in your will. Why would it be better to put it into a trust, rather than leaving it to that person directly through your will?
Replacing government benefits
The problem is that the individual who has special needs may receive certain government benefits. To get these benefits, there is a mean test. If someone has too much money, they are not going to qualify.In other words, the beneficiary may qualify for government benefits today, but they would suddenly become ineligible if you left them $100,000. They would have to spend all of that money down and then reapply for benefits. This can make things very complicated, it can put the benefits in jeopardy and it can essentially waste the money that you’re leaving behind.But if you put the money into a trust, then the trust owns it and your beneficiary will still pass the means test. This does not replace the government benefits. Instead, the trust is able to supplement them.
Setting up your estate plan
This can be a complicated financial situation. It’s important to understand all of the steps that you can take while focusing on your family.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517152024-03-04T14:27:34Z2024-03-04T14:27:34ZWhat does a Totten trust do?
The Totten trust is a very specific revocable trust used for financial accounts. It’s easy to set up because it only requires you to fill out a payable-on-death designation form, letting a financial institution know who gets the funds in the account when you die.
While the Totten trust passes down to the designated person, that individual won’t have access to the account until you pass away. This ensures that you get full use of the accounts without them being changed by anyone.
One of the good things about a Totten trust is that you can change it at will. This doesn’t require a significant undertaking. Instead, you can simply change the person named on the payable-on-death designation.
Remember, a Totten trust is only one part of a comprehensive estate plan. Other trusts might be beneficial, and a will can detail basic information. Powers of attorney designations give someone the ability to make decisions about your finances or health care in the event of capacity. These are only a few of the resources that you may want to consider as you’re crafting a comprehensive strategy to meet your needs.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517132024-02-29T14:38:53Z2024-02-29T14:38:53ZHow Nevada law differs
Every state has unique probate statutes. There are rules about who has the right to inherit from the estate and rules about what scenarios might justify a contest against the documents. For example, in Nevada, there are witness requirements for last wills.
Generally, Nevada wills must be written documents. The testator must sign and must have two adult witnesses sign the documents as well. Certain other details may also require revision and review even if they are not state specific matters. Someone may have changes to their family that transpire because of or during their move.
People may also need to add instructions for the descent of the real property that they now own in Nevada. They may also want to draft advance directives and living documents for their protection, especially if their closest family members are now in another state.
A relocation to a new state is one of many personal circumstances that could warrant a careful review of someone's existing estate planning paperwork. Any scenario that changes someone's resources or reflects a massive shift in their family circumstances could be reasons to go back over an estate plan and make certain adjustments.
Sitting down to draft estate planning paperwork or updated existing documents can afford someone better protection as they settle into a new phase of life in Nevada.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517112024-02-16T21:21:07Z2024-02-16T21:21:07ZDynasty trusts in Nevada are a unique estate planning tool that allow families to pass wealth down through multiple generations while minimizing exposure to taxes and creditors. With favorable trust laws, Nevada has become a leading jurisdiction for establishing such trusts.
Unlike many states, Nevada doesn’t impose a rule against perpetuities, which limits the duration of a trust. Currently, a dynasty trust in Nevada can continue to pass down assets to future generations for 365 years, which is considerably longer than the 90 to 120-year limit in many other jurisdictions that allow dynasty trusts.
Advantages of establishing a dynasty trust in Nevada
The extended duration of a dynasty trust in Nevada is ideal for the long-term management and protection of family assets across many generations. This perpetual nature helps safeguard the wealth from estate taxes at each generational transfer. Nevada's trust laws provide strong protections against creditors, offering a secure haven for assets that might otherwise be vulnerable.Nevada also offers favorable tax treatment for dynasty trusts. There is no state income tax on trusts. This tax advantage, combined with the federal gift, estate and generation-skipping transfer tax exemptions, makes Nevada an attractive location for high-net-worth individuals looking to maximize their estate planning efficiency.
Considerations and challenges
While the advantages are significant, establishing a dynasty trust in Nevada requires careful consideration and planning. The complexity of trust laws and the need for strategic asset allocation mean that families must work closely with experienced professionals in estate planning. These professionals can help navigate the legal intricacies and tailor the trust to meet the creator's specific needs and goals for their family.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517082024-02-14T02:32:26Z2024-02-14T02:32:26ZUnexplained delays in estate administration
One of the initial red flags that may suggest the executor is mishandling the estate is prolonged delays in the administration process. Even though settling an estate can be a complex task, unjustified delays can signal potential foul play. Executors stealing from the estate may intentionally prolong the process to cover their tracks or siphon off assets without detection. If beneficiaries notice significant delays without valid explanations, it may be time to investigate further.
Lack of transparency in financial matters
Transparency is crucial in estate administration, particularly when it comes to financial matters. Executors are required to keep accurate records of all transactions related to the estate. Therefore, if beneficiaries notice a lack of transparency in financial reporting, it could indicate fraudulent activity. A rogue executor may attempt to conceal their actions by withholding financial documents or providing misleading information. Beneficiaries should insist on regular updates and full transparency from the executor to help ensure accountability.
Discrepancies in asset distribution
Another telltale sign of potential theft by the executor is discrepancies in asset distribution. Executors have a legal obligation to distribute the estate's assets according to the deceased's wishes as outlined in the will. Therefore, if beneficiaries notice inconsistencies or disparities in asset distribution, it could indicate foul play. For example, certain beneficiaries may receive less than their entitled share, while others may receive more than they should.
Dishonest executors may manipulate asset distribution to benefit themselves or favored beneficiaries. Beneficiaries should closely scrutinize asset distribution and consider taking legal action if such discrepancies arise.
Dealing with the loss of a loved one is difficult enough without having to worry about the executor stealing from the estate. However, beneficiaries should remain vigilant and proactive in protecting the deceased's assets and helping ensure that the executor fulfills their duties with integrity and transparency. By recognizing the signs of potential theft and taking appropriate action, beneficiaries can help safeguard the estate and uphold the deceased's final wishes.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517062024-02-02T01:31:25Z2024-02-02T01:31:25ZEstablishing a trust in Nevada offers a range of advantages for estate planning. This makes it an appealing option for residents looking to effectively manage and protect their assets.
Nevada's legal framework provides unique benefits for trust formation, including enhanced asset protection, tax benefits and privacy. Understanding these benefits can help residents of Nevada make informed decisions when incorporating trusts into their estate plans.
Asset protection
Individuals can safeguard their assets from future creditors under certain conditions by setting up a Nevada-based trust, such as a domestic asset protection trust (DAPT). These trusts provide a legal means to protect wealth while maintaining some level of control over the assets.
Tax advantages
Nevada is one of the few states with no state income tax, which extends to trusts. This absence of state income tax on trusts makes Nevada an attractive location for establishing trusts, particularly those seeking to minimize the tax impact on investment income and capital gains. Additionally, the state doesn’t have an inheritance or estate tax.
Flexibility in estate planning
Nevada's trust laws are designed to provide flexibility in how trusts are structured and administered. This flexibility allows customized estate planning to meet specific family needs and goals.
Dynastic trusts
Nevada's favorable laws allow for the creation of long-term dynastic trusts. These trusts can last up to 365 years, which allows a creator’s wealth to be passed down through multiple generations while minimizing exposure to estate taxes. This extended duration is significantly longer than in many other states, offering a valuable tool for long-term legacy planning.Understanding the benefits and purposes of various trusts can help those making an estate plan determine the best option for their needs. ]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517042024-01-20T01:13:22Z2024-01-20T01:13:22Zessential qualities must be considered to better ensure that the process is handled efficiently and with integrity.
Reliability and responsibility
Managing your estate is a significant task that requires attention to detail and the ability to follow through on various responsibilities. This includes paying off debts, managing estate assets and distributing inheritances according to your wishes.
Organizational skills
The executor must keep track of numerous documents, deadlines and financial details, so being organized is critical. They must be able to manage these elements effectively to ensure your estate is settled correctly and promptly.
Financial literacy
A certain level of financial literacy is beneficial. While the executor does not need to be a financial expert, understanding basic financial concepts helps manage estate assets, address debts, and deal with taxes and other monetary obligations of the estate.
Impartiality and fairness
Impartiality and fairness are critical, especially if the executor is also a beneficiary or a close family member. The ability to navigate potential conflicts of interest and make decisions that align with your wishes and the best interests of all beneficiaries is paramount.
Communication skills
The executor must correspond with beneficiaries, creditors, court, attorneys and accountants. Keeping all parties informed and addressing concerns is a crucial role.
Choosing an executor is only one part of your estate plan. Ensuring everything is in order can make things easier for your loved ones and give you peace of mind. As such, seeking legal guidance if you have questions about choosing an executor – or any other part of the estate planning process – is generally a good idea.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517022024-01-03T23:25:54Z2024-01-03T23:25:54ZThere are many different ways to create a trust to hold assets as part of an estate plan. One common option is to pick a specific goal and authorize the trust to fund that goal – such as giving a beneficiary the capital needed to start a business, buy a home or pay college tuition. The trust has a distinct purpose and the trustee ensures that the money is used for that purpose.
Another option, though, is to use a discretionary trust. Rather than picking a specific goal, you pick a trustee who gets to use their discretion to make decisions regarding how the beneficiary can use the money. This can be helpful if you are not convinced that the beneficiary would make wise choices with the funds on their own, for example. Maybe they have problematic spending habits, so you want someone else to be in control of how they use their inheritance.
The flexibility of a discretionary trust
One of the key benefits of doing things this way is that a discretionary trust is more flexible. The trustee can consider all relevant information at the time and make the right decision, rather than being bound by restrictions or limitations created years earlier.For example, say that you use an educational trust for college tuition. But then the beneficiary has a terrific business idea before they graduate from college. If the trust says that the money can only be used for college tuition, the trustee cannot violate those regulations. But if they’re allowed to use their discretion, they may decide that you would have been fine with the money being used to start the business, and they can authorize those payments.Setting up an estate plan can be very complicated. Make sure you know exactly what legal options you have.
]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=517002024-01-02T11:50:11Z2024-01-02T11:50:11ZNevada is the optimal location for you to start your business.
Favorable tax environment
One of the most significant advantages of starting a business in Nevada is its favorable tax law. The state doesn’t impose a corporate income tax, which can substantially benefit your business. This absence of corporate tax reduces the financial burden on companies, allowing them to invest more in growth, development and workforce. Additionally, Nevada doesn’t have a personal income tax, which can be attractive for business owners and their employees.
Business-friendly legal environment
The legal environment in Nevada is particularly business-friendly. The state has established courts that specifically handle business disputes, known as the Nevada Court of Business. This specialized court system can lead to faster resolutions of legal matters, which is beneficial for businesses that must promptly and efficiently address legal issues.
Strategic location and infrastructure
Nevada's strategic location provides easy access to major markets. Situated between California and Utah, businesses in Nevada can conveniently reach a large customer base. The state's infrastructure, including well-maintained highways and major airports, supports efficient transportation and logistics, which is vital for businesses that rely on shipping and travel.
A diverse workforce and a growing economy
Nevada boasts a diverse and growing workforce, partly due to its attractive living conditions and employment opportunities. This diversity can be an asset for businesses hiring talented individuals from various backgrounds. Nevada's economy goes beyond tourism and gaming into sectors like technology and renewable energy, providing new business opportunities.
Access to funding and support
Nevada offers various funding options and support for businesses. The state has several programs and incentives to help companies grow, including grants, loans and tax incentives. These resources can benefit startups and small businesses seeking financial support and guidance.
Starting a business in Nevada can offer many advantages. Whether you're launching a startup or expanding an existing company, Nevada's unique combination of benefits makes it a location worth considering.]]>On Behalf of Kerr Simpson Attorneys at Lawhttps://www.sterlingkerrlaw.com/?p=516972023-12-20T14:39:20Z2023-12-20T14:39:20ZIf you thought a recently deceased loved one had never gotten around to putting a will in place, you may be relieved to find one as you’re going through their things. But what if you find another one – and maybe even a third? What if one or more of those wills has lines crossed out and notes written in the margins?
This isn’t an especially uncommon scenario – particularly when a person hasn’t used the services of an estate planning professional to create and modify their estate plan over the years.
How do you determine which one (if any) is valid?
Don’t try to do that yourself – especially if there are multiple beneficiaries who have a stake in your loved one’s estate. The probate court should decide after looking at all the documents. Generally, the court will accept the most recent will (assuming it’s dated) as long as it’s valid under state law. Here in Nevada, a person can write their own will as long as they’re at least 18 and “of sound mind.” They must sign it in front of two witnesses who also sign it. Even handwritten wills can be valid in Nevada.
Why might an earlier will be deemed the valid one?
Remember that for a will to be valid, the person who creates it (the testator) must be of sound mind. If your loved one created a will and then later made revisions when they were in cognitive decline, those revisions would likely not be recognized. The same would be true if it appears that they made revisions under the “undue influence” of someone else. One or more heirs may have reason to believe that the updated will was created under “undue influence” by someone or was not created or signed by the deceased person at all. That’s particularly true if the latest will make significant – and perhaps unexplained -- changes to beneficiaries and other terms of the previous document(s).Multiple wills and other estate plan documents can cause family turmoil – especially if they reflect changes in who inherits assets and how much. If you’re not able to resolve these on your own, the only option may be to go to court. Before you do that, it’s wise to seek legal guidance.]]>