Finding the tools or subset of tools to create a comprehensive estate plan that checks all the necessary boxes is not always easy. For example, Nevada residents may believe that they want to use a trust to help protect their assets and give their beneficiaries the most out of the estate as possible. However, this planning tool comes in many forms to consider and have their pros and cons.
If individuals are hoping to allow their beneficiaries to receive as much of their assets as possible while also allowing those same beneficiaries to have control over those assets, a Beneficiary Controlled Trust may be a viable option. This planning tool offers many of the benefits and protects of any typical trust, but rather than choosing an outside party to act as trustee, the grantor can appoint the intended beneficiary as the trustee. This could allow the beneficiary to manage the assets and use them as the trust terms dictate without suddenly inheriting a considerable windfall.
Some reasons that using this type of trust may be appealing include the following:
- The assets remain out of the reach of creditors and ex-spouses in the event of divorce.
- The assets in the trust do not have to go through probate.
- The beneficiaries will not have their government benefits put at risk, if they receive any, because they will not suddenly receive a considerable amount of money.
- The beneficiary can make investment decisions as he or she sees fit.
The specifics of any chosen trust can differ from estate to estate, so Nevada residents who are interested in this planning option may wish to gain insight into how their exact circumstances could affect the use of Beneficiary Controlled Trusts. It may be a useful option for some, but it is also possible for another type of be more fitting. Fortunately, experienced estate planning attorneys could help interested parties find the best tools for their individual estates.