Planning is always smart, but when it involves end of life decisions, people lose interest fast. It’s easy to disconnect with the distant future and put off topics of mortality. The reality is, the benefits and advantages of establishing a Revocable Living Trust are more for your family and those closest to you. A Revocable Living Trust can save your estate thousands of dollars and help relieve the stress on your loved ones.
Why Have a Revocable Living Trust?
Without a revocable living trust, your assets go through probate when you pass away. Probate is a legal process for settling claims against you and for distributing your assets. Probate in Nevada is lengthy and takes a minimum of 150 days. In addition, if there’s real property that still needs to be sold, another year would be added on to the process. This can lead to confusion and property financial burdens that your family must deal with when you pass on.
Why Avoid Probate?
A Revocable Living Trust is more important than a Last Will and Testament, because probate occurs even with the addition of those two factors. Also, if you’re married, your property is community property. Probate normally requires an attorney, which means legal fees will add up, especially when charged as a percentage of the gross value of your assets. California caps the percentage fees at 3%. However, Nevada doesn’t cap fees. The normal percentage charge in Nevada is 5%. Fees for filing, mailing, copying, and creating appraisals for CPA fees for tax returns are all extra.
If you and your spouse have an estate gross value of $1,000,000 in a community property estate, the value of your probate estate is $500,000. In Nevada, if a percentage fee basis is used, the probate legal fees, not including other costs, would be $25,000.00. Note that if the couple owns several rental properties, besides their house and bank/brokerage accounts, the value of the estate could be $3-$4 million. At $4 million, the deceased’s estate is worth $2 million and the probate legal fees are $100,000.00. For a $2 million probate estate, federal estate taxes are also necessary and are due 9 months after death.
Control Where Your Assets Go
A Revocable Living Trust ensures your assets go to your intended beneficiaries, which keeps you in complete control. Children or family members who require care are your biggest assets to keep in mind. It’s best to prepare for the unexpected. In the event of a sudden death, your decisions now will protect those you care about most. In addition, you can also appoint guardians for children or adults with a Revocable Living Trust. This is especially important for children and young adults. Even with limited funds, you can’t afford to not have these documents.
Creating a living trust is one of the most important steps you can take to help protect your assets. No matter the size of your estate, there are numerous benefits of creating a living trust. Not only does it protect your assets, but it gives your loved ones the peace of mind they deserve. Give us a call at 1-800-508-1729 to get started with creating a living trust!