Estates and trusts are among the legal structures that assist in the transfer of assets to the beneficiaries and heirs. While they might seem to be similar, they both function in a different manner. An estate helps in creating a document that allows a one-time transfer of your estate in the event of your death.
On the other hand, a trust helps you create a document that ensures ongoing asset transfer during and after your life. Understanding the difference between the two is crucial to ensure you create a strong estate plan.
Estate planning lawyers can guide you about the options available for you in creating an estate plan or a trust.
Simply put, the estate is whatever an individual owns, including real estate, investments, bank accounts, cars, furniture, jewelry, and life insurance policy. Creating an estate plan helps protect the estate and allows the distribution of the assets based on your requests in the event of your incapacitation or death.
Estate planning covers all your financial and personal affairs, including transferring of real estate property and medical directives in cases you are unable to make medical decisions for yourself.
The trust serves as a financial and legal document in your estate plan. Through a trust, you can name a trustee who would become responsible for asset distribution among the beneficiaries after your passing. Trust is one aspect of an extensive estate plan, which is why it is ideal for including other planning areas to cover everything.
There are different types of trusts, and the most common ones are as follows:
- Revocable Trust: It enables you to create any changes in the content of the trust or cancel it completely
- Irrevocable Trust: This is the opposite of revocable trust, meaning once you create the trust, no one can change or cancel it
- Special Needs Trust: It allows individuals with special needs to receive the inheritance without it affecting the benefits they receive through Social Security
- Charitable Trust: It prioritizes your philanthropic interests and is mostly utilized by the rich to decrease tax liability
There are also some trust rules specific to Nevada, including:
- Asset protection trust
- Beneficiary defective inheritor’s trust
- Decanted trusts
- Directed trusts
- Dynasty trust
- Incomplete gift non-grantor trusts
Trust planning enables you to create a specific document that highlights when, how, and who receives your assets. Our estate planning lawyers in Las Vegas can help you create a trust based on your wishes.
Consult Bourassa Law Group for Estate and Trust Planning in Nevada
Trust and estate serve distinctive functions and work differently. Both help you transfer your assets to your heirs and beneficiaries based on your wishes. Understanding the difference will allow you to determine the right option for you.
Our estate planning lawyers can help you create an estate plan and a trust based on your assets and wishes. We can provide you with personalized legal assistance to ensure you have an efficient estate plan prepared.
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