Revocable Living Trust:
A Revocable Living Trust (RLT) is also known as a “Living Trust” and/or “Family Trust”. It is created to hold the Grantor’s (Trust Creator’s) assets for the duration of that person’s lifetime. Typically, the Grantor retains control over all of the trust assets, as long as he/she is alive & well. A RLT dictates who the assets should be distributed to (the Beneficiaries) after death, and who should oversee making those distributions & managing the trust assets if the Grantor is unable to do so (the Successor Trustee).
A revocable trust can be modified by the grantor. It is called a revocable trust because the trust can be revoked or modified at any time during the grantor’s life and does not become irrevocable until the grantor passes away. You may be thinking, “what in the world would I put in a trust?!”, especially if you don’t own a home or any significant property. This is a common misapprehension, but it should not deter you from establishing an estate plan. A properly funded trust avoids the probate process- which applies to all estates over $20Kin Nevada! (Probate also applies to any estate that owns any real property (real estate), even if the equity in the property is non-existent). Creating a trust is a foundational step in preparing you and your loved ones for the inevitable. Also, it is very important to establish a trust so that as you progress and build your wealth you have a safety net already in place. Therefore, if you come into a windfall of wealth or inheritance, your assets can be easily added to the trust.
To simplify further, think of a bucket, as time goes on, you keep putting stuff in that bucket and once you are gone, your things are disbursed amongst those whom you chose to give when you were alive. Now, it can be more advanced than that (i.e. estate tax planning, subsidiary entities, etc.). For now, let’s keep things basic.
I have recognized the importance of having a trust. I am not wealthy nor do I have real property to place into a trust. However, that does not mean I am not planning on having any of those things, and if something happens to me, it is nice to know that my family would not have the burden of sorting this out in probate court. Furthermore, I recognize that securing the foundations of estate planning early-on is much easier than leaving things up to chance (or up to the discretion of a court!).
A Revocable Living Trust isn’t the only document you need, however. The following are other ancillary documents that should typically be included in a Nevada Estate Plan:
Pour-Over Will – A Pour-Over will is a special type of Last Will & Testament used in conjunction with a trust-based Estate Plan. It can save the day when the grantor of a trust fails to transfer property into the trust (which unfortunately, happens often over the years). A Pour-Over Will simply states that any assets that have not been funded (placed into) into your trust should go there when you die. More importantly, however, a Pour-Over Will document nominates guardians/custodians for minor children, in the event you’re unable to care for them.
Durable Power of Attorney (POA) for Financial Decisions– Your Power of Attorney designates an individual to make any legal and/or financial decisions for you on your behalf if you beco