Timing the Transfer of Assets Into a Trust

When you pass, assets that remain in your estate may need to go through probate before they can be transferred. Depending on the size of your estate, it may need to pay taxes to state or federal government authorities. However, you can save future generations time and money by putting assets into a trust. How do you decide when it’s the right time to make such a transfer?

Which Assets Have the Highest Cost Basis?

If an asset has appreciated or is expected to appreciate in the near future, put it into a trust as soon as possible. For instance, if you have a stock that you think is going to suddenly grow in value, let it appreciate in the trust. The same is true if you own a business that you assume will continue to grow over several years or generations. Even after the asset is titled in the trust’s name, you can still retain control over it or derive an income from it.

Can an Asset Be Gifted Outright?

Let’s say that you have a bank or brokerage account that you want to pass to your son or daughter when you pass. If that son or daughter is under 21, a custodian will need to be appointed to handle the money on your child’s behalf. Even if your child is an adult, he or she might not be suited to inherit a large gift on his or her own. Instead of selling an asset and giving that child the proceeds directly, you can put the asset in the trust.

Don’t Hesitate to Seek Legal Advice

A trust administration lawyer in Las Vegas can help you draft a trust document or determine when to move an asset into a trust. This can help you retain control of that asset until you no longer want or need it to meet your financial needs.

How to Choose Someone to Oversee Your Estate Plan

If you are over the age of 18, you could benefit from having an estate plan. This plan should include a will, trust and health care proxy. It should also contain plans for your funeral as well as appoint a guardian for any minor children who you may leave behind upon your passing. As your estate plan allows you to create a legacy and provide for future generations, it is important that you choose an executor, trustee or other representatives with care.

Make Sure a Representative Is Qualified to Serve

You don’t just want to appoint someone to be your estate’s executor without first talking to that person. Ideally, you will talk more about the details of the role, what that person’s responsibilities would be and discuss any concerns a prospective representative may have. This should also be done when choosing a trustee or any other surrogate to ensure that he or she is capable of doing the job. If you don’t have any friends who can fill a given role, an attorney or accountant may be able to step in.

Make Sure Everyone Has a Clear Role

There are times when individuals will have roles that overlap with each other. This can cause confusion and even infighting between parties that may not be able to work together. Whenever you ask someone to act in a given role, make sure that it is defined and separate from the responsibilities another person may have.

This Doesn’t Mean Several Parties Can’t Work Together

An estate planning attorney in Las Vegas can take care of the administrative side of an estate while a friend or family member oversees how assets are distributed. This can be ideal because it means an estate plan will be executed in accordance with the law and with the needs of a beneficiary.

What to Check for During an Estate Plan Review

An estate plan review is a time when you meet with your attorney, accountant or important plan surrogates to ensure that plan still works as designed. It can also be a time when either you or your surrogates can ask questions or express any concerns with the plan as structured. Let’s take a look at some of the key questions that should be asked during a review session.

Are Your Beneficiary Designations Correct?

If nothing has changed in your life since your last review, the beneficiary designations that you have chosen are likely worth leaving unchanged. However, if you got divorced, its generally not a good idea to leave that person as a beneficiary. If your child developing a gambling problem or drug habit, it may not be wise to keep him or her as a beneficiary of a bank account.

Do You Need to Appoint New Surrogates?

It may have been appropriate to appoint your best friend as the executor of your estate 10 years ago. However, if you are married now, it may be best that your spouse is the executor. It may also be a good idea to appoint an alternate trustee or health care proxy in the event that those currently performing those roles can’t or won’t do in the future. Finally, you should consider appointing new or alternate guardians for your children.

An Attorney May Help Answer Your Questions

An estate planning lawyer in Las Vegas may be able to help you create or review an estate plan at any time. This may increase the odds that the plan meets your needs and is also created in accordance with state law.

The Importance of Regularly Reviewing Your Estate Plan

If you have an estate plan, it is important that you review it on a regular basis. This is because you need to be sure that your beneficiary designations reflect your wishes and that your will and trust are properly structured. If you don’t have an estate plan, it may be a good idea to create one today as dying without a will could leave you at the mercy of intestacy laws.

Review Your Estate Plan After a Change in Family Status

If you have a child, you will want to update your will to provide a guardian in the event that you pass away. If you get married for the second or third time, you will want to protect your assets with a trust or change the terms of one that already exists. After a divorce, be sure to update beneficiary designations and revoke any powers of attorney that a former spouse may have had.

Review Your Plan Prior to a Planned Medical Procedure

There is a chance that a surgery could be botched or otherwise lead to complications that leave you physically or mentally incapacitated. Without the proper health care proxy and power of attorney documents, you might not receive the care or lack of care that you desire. Therefore, be sure to create or review those documents prior to the procedure out of an abundance of caution.

Review Your Plan Every Two Years

At a minimum, you should review an estate plan with an estate planning attorney in Las Vegas every two years. This allows you to take into account any changes to the tax law or any other laws that could render some or all of your estate plan obsolete. It also reduces the odds that you have overlooked anything such as not titling assets correctly.

Questions That You Should Ask A Probate Attorney

When you are attempting to deal with the loss of a family member, you may need to contact a probate attorney to assist you through the standard probate process that can occur with a will. Before you choose a probate attorney to help you in this matter, there are a variety of questions that you should ask that will allow you to gain a better understanding of which attorney you should choose.

What Kind of Experience Do You Have?

Identifying the amount of experience an attorney has is paramount to making the right decision on which attorney should represent you. You want to be certain that you’re speaking with an attorney who has garnered a substantial amount of experience in handling probate cases and has a special focus in this area of law. Search for attorneys who primarily specialize in this area of the law as opposed to it being a small portion of the services they provide.

How Much Time Do These Cases Take to Complete?

It’s impossible to be certain of how long a probate case can take to complete, which is true even if you select the best attorney available to represent you. While you may fear that a probate case can take years to complete, this is rarely ever the case. The attorney you’re considering may be able to provide you with a general time frame. However, be aware that it’s possible for issues to occur that could delay the conclusion of the process.

What Types of Fees Should I Expect to Pay?

There are several different ways that attorneys can charge you for their services, which include by a flat fee, contingency fee, or hourly fee. How much the case will cost largely depends on how extensive it. More complicated cases will invariably cost more. Request estimates from several attorneys beforehand to make sure that you don’t pay too much. Now that you’re aware of the types of questions you should ask a probate attorney, you can start searching for a probate attorney in Las Vegas.