What a Special Needs Trust Can Be Used for

When a person has a special needs trust set up, he or she cannot directly receive the money in it. However, the trustee of the fund can use the money to pay for items on the recipient’s behalf. Working with a trust administration lawyer in Las Vegas can help trustees and family members correctly add to and use the trust’s funds for the recipient.

Uncountable Resources

A special needs trust can usually be paid for uncountable resources for the recipient. Uncountable resources are those that do not disqualify a person from Medicaid coverage or Social Security disability income. Some things that qualify for uncountable resources include a home with a value of less than $500,000, one motor vehicle and furnishings for a home, such as a new mattress and box spring set or an upholstered chair to sit on.

Personal Effects

The special needs trust can also be used for the recipient’s personal effects and most of their everyday needs. For example, the recipient may need a new pair of shoes every three months and a few pairs of pants each year. The special needs trust can be used to buy shoes, clothing, toiletries and household products.

Countable Resources

A special needs trust cannot be used to pay for countable resources. A countable resource includes cash, money in a checking or savings account, a vacation home, a rental home, stocks and bonds, retirement investments and other investment accounts. Burial expenses in excess of $1,500 cannot be paid for with a special needs trust. If the person’s burial has already been paid for with other funds, this is okay. The special needs trust cannot pay for a life insurance policy with more than a $1,500 cash value.

Why You Should Talk Openly About Your Estate Plan

Communication is the most important part of creating an estate plan. It is critical that your family members know what they are receiving and why they are receiving it. If a family member is going to be taken out of a will or trust, they should know why that is the case as well. While not everyone may like how you have chosen to distribute your assets, they will likely accept it if you are honest about your intentions.

Reduce the Chances of a Will Contest

If a child is completely written out of a will or trust could, he or she could claim that you made the decision while mentally incapacitated. It may also be possible to claim that you wrote your son or daughter out of a will because of the undue influence of other parties. By sitting down with family members and explaining the thinking behind the plan, it shows that it was created of sound mind and of your own free will.

Put People in the Right Roles

It may be tempting to appoint your best friend or oldest child to serve as your estate’s personal representative. However, this may not be the best idea. You should choose an individual who is best suited for the role and fully understands what it means to serve in such a capacity. The same is true of those who are given powers of attorney or other control over an estate. In some cases, it is best to have a lawyer or another professional act in such a capacity.

Don’t Leave Anything to Chance

Generally speaking, you want to create a legacy while alive that is preserved after death. Consulting with an estate planning attorney in Las Vegas can help you to create a plan that will help you to protect what you worked so hard to build while alive.

The Negative Aspects of Dying Intestate

Ideally, a person should create a will prior to passing away. This provides greater control over where assets go and who is to oversee their transfer. With a set plan in place, it can reduce the chances that family members fight over who gets a certain item or who is entitled to an individual’s money. What are some of the other drawbacks of not having a will?

The State Assigns an Executor

You may have wanted your brother, mother or best friend to act as your executive. Alternatively, you may have wanted a law firm to represent your estate after you pass. With a will, it is possible to determine who your executor is. Without a will, the state may appoint someone to fill that role or allow surviving family members the chance to do so. However, making such a decision could cause tension among relatives, cost money and delay the settling of your estate.

Your Estate Pays the Full Tax Rate

The federal tax on estates is 40 percent on any amount over $11.18 million. That figure doubles to $22.36 million for married couples who choose to combine their exemptions. In addition to federal estate taxes, it may be necessary to pay state estate taxes as well. This is on top of any income tax that you might owe at the time of your death. That is on top of legal fees that must be paid to settle the estate.

An Attorney Can Explain the Probate Process Further

A probate attorney in Las Vegas can help you learn more about the process of settling an estate when an individual dies without a will. Furthermore, an attorney may help you to create a will, trust or other estate plan documents to avoid dying without a coherent estate plan. These plan documents may also allow an estate to be settled without any details being made public.

3 Implications for Estate Planning When Living or Working Overseas

If you are thinking of living or working overseas, then you need to take a look at your estate planning before you depart. There are complications that normally do not occur with people who are United States citizens. Therefore, make sure to contact your estate planning attorney to make sure that you are covered should you die overseas.

Review Your Estate Plan

You will want to make sure that all your paperwork is in order before you live in a foreign country. In particular, take a look at your beneficiaries and make sure that your estate administrator is aware of your plans. You also need to take a look at what the other country’s rules say about your estate and taxes if you die on their soil.

Understand Domicile and Residency

Your domicile is the country that you consider home. Generally, people can only have one domicile. Alternatively, you can have residences in many different countries. Your residences are temporary as long as you intend to return to your homeland. Both your domicile and your residencies can have important tax implications when it comes to estate planning.

Think About Foreign Estate Disposition Laws

Generally, you can leave your estate to whomever you desire in the United States. That is often not the case in many other countries. Many countries have forced heirship that requires that your property go to your wife and children. In countries with forced heirship, it is easier for liabilities to be passed on to family members who are benefiting from the estate. Forced heirship laws exist in many different countries including Japan, France, Spain, Italy and Saudi Arabia. Other countries have still different laws. For example, in Thailand, your spouse is seventh in line while in Indonesia, your spouse cannot receive more than one-third of your estate if you have children.

Talking to an estate planning lawyer in Las Vegas can help eliminate many hassles in planning your estate. Take time out of your busy schedule to do it today.

Should A Trust Be Part Of Your Estate Planning?

No one knows what the future holds, which is why it’s important to get the advice of an estate planning attorney when it’s time to put your affairs in order. For example, a trust administration lawyer Las Vegas can help you reduce your tax obligations or avoid probate. There are two basic types of trusts and many ways of structuring them to suit your situation. You don’t need to have a large bank account or a vast estate to benefit, either.

Two Kinds of Trusts

The two main designations for a trust are living or testamentary, which means a trust that goes into play after your death. Trusts can be revocable, meaning you keep control of your assets and can change the terms of the trust. You can also create an irrevocable trust, meaning that someone else, called a trustee, oversees and manages the assets. Trustees are usually lawyers or financial services providers, but you can designate any person you want to administer a trust on your own or a beneficiary’s behalf.

Although the are many possible variables and goals, trusts enable you to:

* Transfer assets to an heir while reducing tax liability
* Make sure that someone trustworthy is in place to oversee your estate should you become incapacitated
* Protect your assets from creditors
* Provide for minor children or an adult child with special needs
* Set up a college fund for your child, protege, grandchild, or the child of a sibling

The Need for a Trust

You don’t need to be wealthy to establish a trust. There are many situations where it might be beneficial, and that requires an individualized approach. Here are a few situations when you could benefit from this option:

* You have an expectation of becoming incapacitated in some way
* You have a child or spouse with special medical or care needs
* You expect your income or business to grow substantially
* You want to limit your financial risk or liabilities

You want to make sure that all of your legal bases are covered when it comes to protecting your family and assets. It’s never too soon to get your affairs in order. Talk to a qualified trust lawyer about your situation today.