The Informed Investor
A living trust, also known as a revocable, or family trust can provide invaluable benefits for you as the trustor, and for your beneficiaries. It’s widely regarded as a must-have in a comprehensive estate plan. In certain situations, an irrevocable trust may also offer benefits, particularly for high-net-worth individuals. This article will focus on how, and why you should consider adding a revocable trust to your estate plan.
What is a Revocable Trust?
A revocable, living, or family trust is a legally formed entity that you will transfer ownership of assets to while you’re alive. A living trust is entirely revocable until you pass away. At that point the trust becomes irrevocable. Revocable trusts are created as part of an estate plan, with specific goals in mind. A living trust will spare your beneficiaries the probate process. A living trust will also keep your information private, whereas a will becomes a public record. Living trusts also often allow beneficiaries to receive their inheritance without delay. Moreover, revocable trusts are harder to challenge in court than a will. Finally, a living trust safeguards your assets if you become incapacitated.
Reasons to Include a Living Trust in Your Estate Plan
When you create a family trust, you decide who will serve as your trustee. They will be responsible for seeing your assets distributed in keeping with your wishes. The court will not be responsible for dividing your assets after you die. This also prevents your loved ones from having to pay for court costs and fees associated with probate which can be a costly and lengthy process.
Living trusts also offer extraordinary flexibility. They can be revoked, or modified at any time before your death. As the grantor, you remain in complete control of your assets until your death.
A revocable trust also allows you to create highly specific allocations and instructions for your assets upon your death. For example, if you do not wish for children, grandchildren, or others to inherit large sums of money before they reach a certain age, you may stipulate that in the trust. Likewise, you may establish educational requirements for beneficiaries to receive their portion of your estate.
What To Include in a Living Trust
A wide variety of assets can be placed into a revocable trust in Nevada. Exceptions include accounts with named beneficiaries such as IRAs, 401ks, and HSAs. Nearly all other assets may be placed in the trust including:
- Bonds & Annuities
- Savings and Checking Accounts
- Real Estate
- Stock Certificates
- Art, Jewelry, Musical Instruments, and Other High-Value Items
- Mutual Funds
- Money Market Accounts
- Non-Retirement Brokerage Accounts
- Partnership Businesses
- Certificates of Deposit
Most people with significant assets, heirs or charitable objectives will benefit from having a revocable trust in addition to a last will and testament. However, for some individuals, other trusts, such as a domestic asset protection trust, dynastic trust, or an irrevocable trust may offer greater benefits. Consult with your attorney and your financial advisor.
Schedule a Consultation or Call
The Investment Counsel Company of Nevada (ICC) provides collaborative financial planning services including retirement planning and tax planning, in coordination with your estate planning attorney and accountant. Let us help you solidify your legacy with prudent planning for your loved ones’ futures, charitable giving, and strategies to help you achieve all that is important to you.. Contact us today at 702-871-8510 to learn how our team can help you.
IMPORTANT DISCLOSURE INFORMATION
The Investment Counsel Company of Nevada (“Company”) is an SEC registered investment adviser located in Las Vegas, Nevada. Company may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Company’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Company’s web site on the Internet should not be construed by any consumer and/or prospective client as Company’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Company with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of Company’s current written disclosure Brochure discussing Company’s business operations, services, and fees is available from Company upon written request. Company does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Company web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Company), will be profitable or equal any historical performance level(s).
Certain portions of Company’s web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Company (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Company, or from any other investment professional. Company is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.
Please Note: Limitations: Neither rankings and/or recognition by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree, or license, membership in any professional organization, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Investment Counsel Company is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (see below as to participation data/criteria, to the extent applicable). Unless expressly indicated to the contrary, Investment Counsel Company did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of Investment Counsel Company by any of its clients.
ANY QUESTIONS: ICC’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking. Please review Important Disclosure Information set forth in the last section of this website.