No one likes to pay taxes, but many Nevada residents recognize that taxes are a necessary evil. That recognition does not mean, however, that they want to pay any more than is absolutely necessary. When it comes to estate planning, numerous strategies are available that can reduce the taxes that an individual will have to pay during life and that his or her estate will have to pay after death.
Since Nevada does not have an estate or inheritance tax, most people will not need to worry about reducing estate tax liability. However, for those individuals whose estates are larger than the federal estate tax exemption, planning is imperative. Otherwise, a good portion of the estate could end up going to the federal government instead of to an individual’s heirs and beneficiaries.
Beyond a last will and testament, many people include trusts as part of their estate plans. After the tax considerations, one of the biggest advantages of trusts is that they allow an individual to control how the assets in the trust are distributed. Therefore, it is not necessary to have a large estate to benefit from a trust. People can take care of their loved ones after death with the peace of mind that the assets will be available for them when the time comes.
Whether a person’s concern is taxes or simply providing for family after death, estate planning can achieve those goals. Estate planning documents can be tailored to each individual’s family circumstances and wishes. Nevertheless, an estate plan needs to be reviewed periodically to ensure that it still fulfills the wishes, goals and desires of its maker.
Source: U.S. News & World Report, “5 Estate Planning Strategies to Keep Your Money in the Family“, Maryalene LaPonsie, Nov. 19, 2015