If you have special needs family members such as an elderly parent, child or grandchild, it is important to account for those needs when creating an estate plan. It may be possible to create trusts that will hold assets on their behalf. This may allow them to have money or other assets without losing the ability to collect Medicaid or other financial assistance.

How Trusts Help Special Needs Family Members

To qualify for Medicaid, an individual needs to have less than $2,000 in assets. Otherwise, that individual may need to deplete their assets to cover the cost of hospital stays or meet other care needs. By holding assets in a trust, an individual can have access to items without owning them directly. This means that special needs family members can still gain access to residential communities, wheelchairs or other items without having to pay for them.

Make Sure Family Members Know About the Trust

It is important that family members know that they should make gifts to the trust instead of to the disabled person. Even if a gift is made in error, it could still jeopardize a person’s ability to receive government benefits. Losing such assistance could result in a parent having to pay hundreds or thousands of dollars per month in health care and other costs.

Legal Assistance May Be Available

It may be a good idea for a parent or grandparent of a special needs person to talk to an estate planning attorney in Las Vegas. This may allow an individual to determine how an estate plan should be created and learn how to craft a will or trust in accordance with state law.

While most people understand the importance of a will, the details in deciding how to distribute your assets can be a complex and overwhelming decision. One of the ideas you may have come across is the idea of transferring your assets through a family trust, instead of through a traditional will. Here are a few advantages and considerations to account for.

A Trust is More Likely to Reflect Your Desires

While a will can be a powerful document, it can also be a distinctly limiting one. The laws surrounding the creation and interpretation of wills are complex and often lead to unclear outcomes. For example, the simple difference between the phrase “as long as” and “but if” can have hugely meaningful ramifications for how your loves ones inherent – or don’t inherit – your estate. Utilizing a trust allows you to use plain language and express your intents in a much more natural way.

A Family Trust Provides More Flexibility

Once an estate has gone through probate, there is very little oversight or protection over how your estate is utilized. For example, money can generally only be paid out through a will in a lump sum. In contrast, the flexibility of trusts is almost limitless. Thus, if you would prefer to have your assets distributed more carefully, or with more oversight, a trust may be the best option for you.

A Trust Can Be Less Stress for Your Family

The process of probating a will can be an extremely stressful time for your family. Based solely on the technical wording of a single document, a judge will quickly determine the final disposition of your assets. This is often done with little consideration for your actual intent. In contrast, the beneficiaries of a trust maintain an ongoing and beneficial relationship with your chosen trustee. This not only reduces the time pressure, but it ensures that your desires are reflected so that your assets can best benefit those you love. If you have any questions or ideas regarding the best way to structure your estate, the best solution is to talk to an estate planning lawyer in Las Vegas. The right solution for you may be a family trust or a hybrid approach using both a will and a trust.

According to the Secure Act, beneficiaries under the 410 (k) plans and personal retirement accounts need to take out the finances within ten years. During this time, there are no RMDs as per the law. It means that your balance should read zero by 2030. This way, you will not be blocked from accessing your inheritance for ten years.

Additionally, if you are earning a lucrative salary, you will have a substantial tax hit. The minimum distribution will differ depending on your life expectancy and age. Plus, the amount will rely on the balance that you have in the account. To be on the safe side, you might need to consult a trust administration lawyer in Las Vegas for in-depth information.

Additional Rules According to the Secure Act

The retirement bill also stipulates that beneficiaries cannot roll over the amount to an IRA account. They only take out the distributions if they are not spouses to the account holder. However, the Secure Act has exempted people, such as disabled persons, spouses, and younger siblings. Also, minor children do not fall into this category.

For better understanding, if your granddad intends to leave you an inheritance worth $200,000, here’s what will happen. He will pay premiums instead of life insurance death benefits. Additionally, your grandfather will pay taxes so that you can get the payment with sheer simplicity. The highlight is that you receive the amount in the long run without the need for a tax deduction. To make the process simple, you will need an inheritance attorney to guide you.

How to Maximize the Opportunity

If you are a beneficiary who is on the verge of retirement age, you can delay taking out the money. You will avoid heavy taxes that come with your annual income. As aforementioned, the new laws come with huge deductions on high salaries. Thus, you can patiently wait until you retire so that you can continue with the withdrawals. The inherited account will be safe, and you will reap huge benefits from it.

The Role of Behavior Clauses in a Will

Behavior clauses may require that a beneficiary take some sort of action in return for receiving an asset. For instance, such a clause could require a grandchild to go to college if he or she wants to inherit $10,00 from a grandparent. Let’s take a closer look at how to include these provisions in a will, if they are legal and if it’s a good idea to do so.

How to Add a Behavior Clause Into a Will

Generally speaking, a behavior clause can be inserted into the original will or into a subsequent version of a will. If a will is changed to include such a stipulation, it is typically a good idea to have the document reviewed by an attorney. Otherwise, a beneficiary may try to claim that the change is invalid.

Should You Add Behavior Clauses in a Will?

While you can add such a clause in a will, it may be easier to do so with a trust. This is because trusts are harder to challenge than wills because there is no need to make its terms public. Furthermore, a will must generally go through probate, and probate can typically only end after assets have been distributed. Therefore, it may not be wise to add requirements that a beneficiary may need months or years to comply with before an asset is distributed.

Not All Clauses Are Considered Valid

If a clause is deemed to be illegal, immoral or otherwise against the public interest, it may be stricken. A probate attorney in Las Vegas may be able to explain why a clause was stricken and what may be done to ensure that a deceased person’s wishes are ultimately met.

Have a Will and Keep It Updated

Having a will is of vital importance for all adults. Even if you are young or feel that you do not have enough assets to justify a will, it is still worthwhile to invest the time to have one composed. Without the direction of a will, your family can often be left in a difficult situation. There are two primary reasons for this. First, if you pass away without a will, the state determines where your property is distributed in a process known as “intestate succession.” This can lead to painful and unpredictable outcomes. Second, a will can also help clarify your desires regarding difficult end-of-life decisions.

Beyond having a will, you must keep it updated. A highly outdated will is often the same as having no will at all. The process of writing an maintaining a will can be simple and inexpensive with a respected probate attorney in Las Vegas, so there is truly no reason to delay.

A Will Isn’t a Good Place for Surprises

While surprise clauses in a will make for great movies, they are not as fun in real life. When drafting your will, try to avoid any clauses or demands that may be confusing or difficult for your family. A surprising distribution of your property may seem like a good idea on paper, but it can be painful for your loved ones.

Be as Clear as Possible

The idea of a will is not to be poetic. Rather, the goal is to be as clear as possible. Try to state your intentions and desires as plainly and clearly as possible. This makes it less likely for your will to be contested and makes it clearer for the courts to administer your wishes.

Don’t Try to Control Too Much

It is often tempting to try to maintain control even after we are gone. This is an understandable impulse that can lead to clauses like “I wish to leave my home to my daughter unless she drops out of college.” While these directions may come from a place of good intention, these modifications can have complex and unpredictable effects on the outcome of a property settlement. Thus, simplicity is a preferable option if at all possible.