Nevada residents may worry about the impact of taxes when it comes time to create their estate plan. However, this may not be the only thing that they should be thinking about when writing their will or creating a trust. Therefore, the fact that President Trump wants to do away with the federal estate tax may not have as much of an impact as individuals may think.
It is important to note that the federal estate tax only applies to individuals with estates worth more than $5.49 million in 2017. Those who are married may combine their exemption, which means that there is no tax on the first $10.98 million. Therefore, most estates won’t have to pay this tax regardless of whether it exists or what the rate may be. However, an estate plan may be useful for a variety of other reasons, such as for parents who are looking to name a guardian for any minor children who they may leave behind.
Medical and financial powers of attorney may help protect assets in the event that an individual is mentally incapacitated. Creating a trust may allow a parent to determine when and how a child may gain access to his or her inheritance. This may prevent someone who is too immature or not mentally capable of handling money or other assets from squandering them.
Those who wish to exert greater control over their assets may wish to talk to an attorney about their estate planning options. The use of wills or trusts may make it possible to give assets to beneficiaries who may make the best use of them. It may also allow parents to appoint guardians who will look after the best interest of their children.