Apr 13 2021

Guide to Estate Beneficiaries by Estate Planning Attorneys From Las Vegas

Estate Planning Attorneys in Las Vegas: Naming Estate Beneficiaries

Estate planning attorneys in Las Vegas field questions from every corner of the industry. Beneficiaries remain among the most common topics of discussion with our clients. Since it is such an important concept, understanding their mechanisms will be crucial. Otherwise, you’ll have limited knowledge regarding how your assets would be disbursed.

Estate Planning Attorneys in Las Vegas: What Is a Beneficiary?

So, if you have been planning for retirement wisely, you’ll have a few accounts full of assets. When planning for how those should be handled, you must consider who should receive them. Those people should be your beneficiaries. In other words, you should name them as the legal inheritors of such assets. That way, when the time comes, everything goes where it should.

By Naming a Beneficiary, You’ll Avoid a Lot of Potential Fees

Plus, on top of that peace of mind, you’ll also avoid a ton of fees. When you don’t name a beneficiary, assets pass through a number of 3rd parties before they disburse. As a result, your inheritors must pay a fee for each of those steps. By naming them ahead of time, you avoid most of those costs.

Primary vs. Contingent Beneficiary

Depending on the circumstances, you may want to name them contingent beneficiaries. Thus, only giving them access to your assets should certain circumstances be met. Otherwise, everything would remain under your control. In contrast, you are the primary beneficiary for most of your retirement accounts. Assuming you live to retirement, then those funds would belong to you. With a contingency, you avoid any unnecessary transfers. That way, these things only come into the picture when they are needed.

Benefits of Naming a Beneficiary to Your Retirement Estate

What would make someone name a beneficiary? If your assets go to your relatives either way, what are the benefits? Well, if you would like to minimize the fees and taxes, there’s nothing more effective. By naming beneficiaries, your inheritors save a ton. Since you eliminate a lot of legal processing, it’s much more affordable in the long run.

Guaranteed Funds for the Future

By setting up one of these, you provide a security net. In the future, when your inheritors receive their funds, they’ll appreciate the difference. Plus, by doing it this way, you ensure the funds don’t reach them too early. That way, they are old enough to appreciate such a large sum. Otherwise, wasting the funds would be a much larger risk.

A Few Potential Disadvantages

To complete this process, you’ll have to navigate some legalities. As a result, we recommend working with experienced estate planning attorneys in Las Vegas. When it comes to your retirement assets, you don’t want to leave things up to fate. If you can avoid it, you’ll appreciate such certainty. However, at the same time, this does place a few restrictions on you. Since these are legal contracts, once they are in place, overturning them can be a chore.

Comparing Types of Beneficiaries

In general, beneficiaries belong to one of two groups. On the one hand, they can be the primary beneficiaries. On the other hand, they can be the contingent beneficiaries. Each of these groups is important to understand. Unless you are familiar with them, it is worthwhile information.

Primary Beneficiary

Generally speaking, the primary beneficiary should be the account holder. For example, suppose you have an IRA. With one of those, once you reach retirement, the funds belong to you. As such, you would be the primary beneficiary. According to estate planning attorneys in Las Vegas, unless you transfer ownership of those assets, you’ll remain the primary beneficiary until the funds are gone.

Contingent Beneficiary

When planning for an inheritance, you can name a contingent beneficiary. These contracts specify which circumstances would grant individual access to the assets. Suppose you would like to set aside some money for one of your children. If that happens to be the case, you would name them as a contingent beneficiary to one of your retirement accounts. That way, if something transpired, they would receive them. At the same time, your assets continue to belong to you unless something happens. That way, your relatives have a sense of financial security. Plus, you’ll give it to them without giving anything away unnecessarily.

Naming Beneficiaries to a Trust

Naming a beneficiary to trust is similar. However, there a few key differences. Compared to an IRA, these would be much more involved. Unless you have a substantial sum of assets, the extra work may not be worthwhile. Nevertheless, under certain circumstances, these make more sense than anything else. Thus, if you’d like more information, we suggest pursuing it. By speaking with a professional, you’ll receive better guidance pertaining to your situation. That way, while you plan for the future, you’ll have all the needed knowledge.

Trusts vs. Other Forms of Inheritance

When you set up a trust, you are initiating a complex legal procedure. With other forms of inheritance, things are not as complicated. One consequence would be the higher costs that accompany trusts. Since they tend to be a bit more expensive, they are not suitable for all financial situations. In many instances, you’ll lose money in the run by using one of these. Fortunately, those same funds could be applied to an IRA. With one of those, you’ll prevent most of the fees. In this way, your retirement plans will be a bit more efficient. Plus, on top of that, you won’t have to worry about all the legalities of a trust.

Mar 23 2021

What Estate Planning Attorneys in Las Vegas Want You to Know Before Starting Probate

10 Things Estate Planning Attorneys in Las Vegas Recommend Knowing About Probate

If you’re looking to leave a will behind after you pass on, the fact is that your family is likely to have to go through probate. There is a misconception that probate is something that we should avoid at all costs; however, probate is very common and can be a speedy process if done correctly. Thus, the following includes 10 things you should know about the probate process.

10. What Is the Probate Process?

Many people don’t know what the probate process is or what probate even means. However, that is very understandable as most people will not have to deal with it more than once or twice in their lifetime. So, what exactly is probate? According to estate planning attorneys in Las Vegas, probate is the process of authenticating a last will and testament. The process includes detailing everything in the estate, placing value on it, paying any debts you may have had, and lastly, distributing the assets to the people you placed within your will.

9. Know the Terms that Estate Planning Attorneys in Las Vegas Know

Probate is filled with a number of uncommon terms that the ordinary person may know have ever heard about. That is why estate planning attorneys in Las Vegas promote the importance of familiarizing yourself with the various terms you’re going to encounter. Failure to do so can lead to making costly mistakes. So, let’s begin with the decedent and who that is within probate. The decedent is the person who owned the estate and created the will. If the person left a will, they would be called a testate estate or intestate estate if they did not leave anything behind. The executor is the person who is appointed by the courts to deal with the estate. A personal representative is usually a catch-all designation for both administrators and executors.

8. Probate Records Are Public

If you’re worried about other people knowing your personal business, probate may be something you should attempt to avoid. The fact is that a large majority of probate will be made public. A probate attorney may help you understand the process much better and may place your mind at peace. Fortunately, most families do not have dirty laundry that they are scared of sharing with the world.

7. Debts and Taxes Don’t Go Away

Contrary to popular belief, your debts and taxes are not going to go away after you pass on. Creditors and the IRS will begin looking at your estate to see what they can obtain to pay back what you owe. For example, if you owe money on your car loan, it is likely to be taken by creditors to repay anything you owe on it because it is considered a secured loan. In terms of taxes owed, the IRS will look into any liquid assets you may have left over to repay back taxes.

6. Start Creating an Inventory of Assets

Although it can be waived by the courts, your personal representative will still need to make an inventory of all your assets. This is done to ensure that nothing is being hidden from family and friends are included in your estate plan. In addition, an inventory list of your assets can help mitigate any challenges introduced by your family members.

5. Probate Assets

Perhaps the most common issue people have with probate is understanding which are probate assets and which are not. One of the best ways to determine and remember if your assets are considered probate assets is to think about if the assets are in your name alone. If they are, then they will be added to the inventory. However, any joint accounts such as retirement accounts are usually going to transfer to a spouse.

4. Fees Involved in Probate

Much like any legal proceedings, there are going to be a few fees that need to be paid. Those fees are likely to be taken out by your estate and will be used to pay personal representative and attorney fees, to name a few.

3. How Long a Probate Process Takes

The unfortunate fact is that the average probate period will be around 6 months. This is largely due to waiting periods of certain assets and, of course, the speed at which the courts move. However, the probate period may be shorter if there is less to deal with.

2. Understanding the Power of the Courts

Understandably, people are going to be worried about how much the courts have over their estate. Fortunately, the courts usually only act as overseers of the entire process. This will usually only chime in if they begin to see some irregularities or if there is a challenge filed by one of the family members.

1. Probate Closes, Then What?

Once everything has been distributed, and creditors/IRS have been paid, the personal representative will summarize everything to ensure that nobody is missing or if they have any challenges regarding the distribution. Once that occurs, the courts will allow the matter to be closed, and the personal representative will be relieved of their duties.

Mar 09 2021

Issues That a Probate Lawyer Recommends Covering in Your Estate Plan

Checklist of Issues a Probate Lawyer Suggests to Address in Your Will

According to recent statistics, over 42% of Americans have a will in place. A will allows people to place in writing their wishes after they have passed on. Contrary to popular belief, wills are not only for the well-to-do or the elderly. Anyone can and should make a will in order to provide their family with some peace and protection after you are gone. However, although the amount of people with a will is pretty high, that does not mean they are being crafted perfectly. Thus, the following includes a probate lawyer’s checklist of issues that will help you address some of the items that people tend to forget during their estate planning process.

Why a Probate Lawyer Recommends a Checklist for Your Will

As stated above, simply creating a will is not enough to protect your estate or your family after your passing. Missing items such as one piece of real estate property being left out of your will can quickly throw everything out of order. Because your will is not clear, the decision power is then placed on the state in which you reside in. It is likely that your family will then have to go into probate. Everyone who is interested will likely need a probate lawyer, and infighting within families begin. Of course, this is not the route anyone wants to go down, and thus the importance of creating and executing your checklist of issues that need to be addressed.

Understanding the Value of Your Estate

Perhaps the most common item that is left out of most wills is the overall value of your estate. The misunderstanding tends to stem from believing that simply having all your assets on paper is enough. The reality of the matter is that it does not. Every asset in your estate is going to have a different valuation, and thus it should have its own number attached to it. Although it can be difficult to get exact value numbers for each item of your home, it is still important to come up with a proper estimate. More valuable and sensitive items such as a business should be a bigger focus. You may bring in a business planning lawyer Las Vegas that can help you determine the value of your business now and even the potential growth of the company. Now, you may be thinking that it’s too soon to place value on property that will only increase in value over time. That is understandable and the reason why wills must be reviewed every few years.

Personal Debts

If you’re older and still owe a significant amount in personal debt, it is likely that you will pass on with that debt. This may worry you in terms of what is going to happen to your family once you are no longer around to pay them. Fortunately, there are a few things you can add to your will to ensure that your family is protected. This all begins by separating your secured and unsecured debts. Unsecured debts include debts unrelated to the estate, such as medical bills or credit card debt. Secured debts are anything that gives your creditor the legal right to take your property in order to pay off the debt. Examples of secured debts include car and home loans. This is where many people get into trouble. If they promised a car or a home to their child, that property might not be there if creditors choose to use it to pay off your loan. That is why asset protection lawyer Las Vegas firms highly recommend that you mention these properties specifically within your will. Although not full-proof, it does help minimize the chances of having that asset taken away from your family member.

Choosing Your Beneficiaries

Perhaps the most important part of a will is naming your beneficiaries. These are the people who are going to be receiving something from your estate. However, some will tend to forget to add their own children to the list. Now, this doesn’t come from any malicious intent; the children may be minors at the time of the writing of the will. However, you should still add them (If you want) as the main heirs to your estate, but only if they are adults at the time of your passing. If there is no family left, you may choose to leave your estate to a charity or non-profit organization.

Gather Your Witnesses

Most states require that you bring in at least two witnesses when it is time to sign your will. However, experts recommend that you bring in additional parties to the signing event. In addition, you may also want to look closely at who you choose to sign your witness document. Probate Las Vegas attorneys suggest a close family member and someone who is not in the will themselves as a means of having an unbiased party involved in the event that any disputes arise.