Stone Law Offices, Ltd. and our Las Vegas estate planning lawyers are committed to assisting you and your family with all aspects of your estate planning needs, and providing competent, comprehensive, and relevant legal advice that is responsive to your specific circumstances.
Nobody wants to think about death or disability; however, establishing an estate plan is one of the most important steps you can take to protect yourself and your loved ones. Proper estate planning not only puts you in charge of your finances, it can also spare your loved ones of the expense, delay and frustration associated with managing your affairs in court when you pass away or become disabled.
What is Estate Planning?
At its essence, estate planning is about leaving what you want, to who you want, when you want, and how you want, while keeping the wrong people out and reducing the impact of taxes, creditors, and predators on your beneficiaries.
Estate planning is also about preserving your assets and designating the persons you want to manage your affairs at two different stages – in the event you become incapacitated, and when you pass away. Our Las Vegas estate planning lawyers know this.
When done properly, your comprehensive estate plan should include the following:
- Trusts (including a Revocable Living Trust)
- Personal Property Memorandum (to distribute your personal effects)
- Financial Powers of Attorney
- Healthcare Powers of Attorney
- Living Will (aka Advance Directive)
- HIPAA Authorization to Release Medical Records
- Memorial Instructions (to designate your funeral wishes)
- Proper Titling / Transfers of Property consistent with your estate plan
In some cases, you may need Advanced Estate Planning to address specific circumstances, including:
- Asset Protection
- Charitable Planning
- High Net Worth Planning
- Income Tax Planning
- Estate Tax Planning
- Pet Trust Planning
- Retirement Planning
- Business Succession Planning
- Special Needs Planning
Do I need Estate Planning?
In short, “Yes!” Everyone needs to do estate planning regardless of their level of assets, age, or family situation. If you don’t document your wishes for how you want things to be handled when you become incapacitated or pass away, then the State will gladly manage you and your assets according to the state statutes.
Our clients include members of the middle-class, as well as affluent individuals and families with substantial assets and income – all of whom wish to make sure that their estates will properly and efficiently managed and distributed.
What happens if I suffer incapacity in Nevada without an Estate Plan?
If you become incapacitated, you won’t be able to manage your own financial affairs. Many are under the mistaken impression that one’s spouse or adult children can automatically take over for them if they become incapacitated. The truth is that in order for others to be able to manage your finances, they must petition the guardianship court to declare you legally incompetent. This process can be lengthy, costly, stressful, and very public. Even if the guardianship court appoints the person you would have chosen, the individual may have to come back to the court every year and show how he or she is spending and investing each and every penny.
If you want your family to be able to immediately take over for you, it’s essential that you work with a competent attorney to create the proper legal documents to designate a person, or persons, that you trust so they will have the authority to handle your finances, i.e., withdraw money from your accounts, pay bills, take distributions from your IRAs, sell stocks, and refinance your home. Many people mistakenly think that a simple Will can effectively protect you in the event that you become incapacitated, but the truth is that a Will does not take effect until you die.
In addition to planning for the financial aspect of your affairs during incapacity, it’s critical that you & your Las Vegas estate planning attorney establish a plan for your medical care. The law allows you to appoint someone you trust – for example, a family member or close friend to make decisions on your behalf about medical treatment options if you lose the ability to decide for yourself. You can do this by using a durable power of attorney for health care where you designate the person to make such decisions on your behalf. In addition to a power of attorney for health care, you should also have a Living Will which informs others of your preferred medical treatments such as the use of extraordinary measures should you become permanently unconscious or terminally ill. Finally, you should have a HIPAA Authorization to release your medical records to the persons you chose to make healthcare decisions on your behalf.
What happens if I die in Nevada without an Estate Plan, or I only have a Will?
If you pass away without a formal estate plan (i.e., a Will or Trust), or if you leave your estate to your loved ones using only a Will, everything you own will pass through probate. The process is expensive, time-consuming and open to the public, and the probate court is essentially in control until your estate has been settled and distributed. During this process, it is not unusual for the probate courts to freeze assets for weeks or even months while trying to determine the proper disposition of the estate, making it difficult for your family to pay for living expenses. If you are married and have children, you want to make certain that your surviving family has immediate access to cash to pay for living expenses while your estate is being settled. With proper planning, your assets can pass on to your loved ones without undergoing probate, in a manner that is quick, inexpensive and private.
Can I provide for my Minor Children in Nevada with an Estate Plan?
It is important that your estate plan address issues regarding the upbringing of your children. If your children are young, you may want to consider implementing a plan that will allow your surviving spouse to devote more attention to your children, without the burden of work obligations. You may also want to provide for special counseling and resources for your spouse, if you believe they lack the experience or ability to handle financial and legal matters. You should also discuss with your attorney the possibility of both you and your spouse dying simultaneously, or within a short duration of time. A contingency plan should include a list of persons you’d like to manage your assets and name a guardian you’d like to nominate to raise your children in your absence. The person, or trustee, in charge of the finances need not be the same person as the guardian. In fact, in many situations, you may want to purposely designate different persons to maintain a system of checks and balances.
You should give careful thought to your choice of guardian, ensuring that he or she shares the values you want instilled in your children. You will also want to give consideration to the age and financial condition of a potential guardian. Some guardians may lack child-rearing skills you feel are necessary. If you fail to plan, the decision as to who will manage your finances and raise your children will be left to a court of law.
Another issue to consider during the planning process is whether you’d like your beneficiaries to receive your assets directly, or to have the assets placed in trust and distributed subject to conditions and circumstances such as age, need and even incentives based on behavior and education. All too often, children receive substantial assets before they are mature enough to handle them in a prudent manner. Ask you Las Vegas estate planning lawyers for help today.
Will I be subject to Death Taxes in Nevada?
The IRS will want to review your estate at death to ensure you don’t owe them that one final tax: the federal estate tax. Whether there will be any federal tax owed depends on the size of your estate and how your estate plan is structured. Many states have their own separate estate and inheritance taxes that you need to be aware of. Nevada does not currently have its own state estate or inheritance tax; however, you may be subject to another state’s tax if you own any assets in that state. There are many effective strategies that can be implemented to reduce or eliminate death taxes, but you must start the planning process early in order to properly implement many of these strategies.
Can I provide for a Charity with my Nevada Estate Plan?
Do you want to benefit a charitable organization or cause? Your estate plan can provide support for such organizations in a variety of ways, either during your lifetime or at your death. Depending on how your planned giving is set up, it may also allow you to receive a stream of income for life, earn higher investment yield, or reduce your capital gains, income, or estate taxes. Our principal attorney, S. Craig Stone II, has worked extensively with clients in implementing charitable planned giving strategies to minimize and/or avoid substantial taxes, generate additional income, build a legacy in the community, and teach stewardship to the family members.
We are here to help!!!
Stone Law Offices, Ltd. is ready to help you prepare a comprehensive estate plan that is a reflection of your purposes, passions, goals, objectives, and unique family circumstances. We strive to educate clients on the many details involved in estate planning, and choose to focus on a whole-person approach to build deep relationships and create a plan that will firmly encompass everything you want to pass on to your loved ones. Contact us a complimentary consultation.