Nevada Estate Planning & Elder Law Information Blog

4 Reasons to Consider Using a Corporate Trustee

1. You and your heirs gain from their experience.  Since Corporate Trustees manage trust assets on a daily basis, they have more familiarity with investment strategies - and statistically tend to achieve higher investment returns.  They are also familiar with tax and estate planning requirements, and the legal responsibilities of a trustee.
2. You may have greater protection since corporate trustees are regulated by both state and federal agencies.  Further since court's tend to treat corporate trustees as experts, they are usually held to higher standards than a nonprofessional.
3. A corporate trustee is always available to you and will not become ill, get divorced, decline to act as a trustee, or become distracted by personal problems.  Further since they are professionals you can count on them to act objectively and faithfully follow your trust instructions.
4. A corporate trustee insures continuity over time.  If you have a child who is not responsible with money, or have a relative with special needs for whom you are concerned about their care in your absence, a corporate trustee can maintain your wishes and objectives when you are not available.

Consider Your Options Carefully When Selecting the Beneficiary of Your IRA

Were you aware that the selection of the beneficiary of your Individual Retirement Account or "IRA", could have a big effect upon its value in the future? 

If you have an IRA, you are probably aware that once you reach a certain age you are required to take mandatory distributions from your IRA.  However keep in mind that these are minimum mandatory distributions, you are not required to spend the entire balance.  If you do not withdraw all of the money from your account before your death, it will pass to your beneficiary; and, depending upon who you have named as the beneficiary, the balance in your account can continue to grow in a tax deferred manner for many years into the future.   Consequently a person of modest means can grow their IRA to a significant estate for their family and loved ones.

Your choices for beneficiary include a spouse, children, grandchildren, other individuals, charities, or a trust.  Each choice has benefits and detriments so be sure to weigh your options carefully.  We recommend that you talk with an estate planning attorney as well as your family accountant, or financial professional before making your final choice.

Happy 4th of July!

Allison Herr and The Herr Law Group wish you and your family a safe and relaxing 4th of July. 

Happy Independence Day everyone!

Should I Be Concerned About Estate Taxes?

Your estate may be taxed a number of different ways.  First if you earned income during the last year of your life, your estate will need to pay final income taxes.  Additionally, if you have property located in the State of Nevada, and have assets sufficient to necessitate the filing of a federal estate tax return, you will also have to pay taxes to the State of Nevada.  Finally, if your estate exceeds the federal estate exemption you will pay federal estate taxes at a rate of 45%. 

The current schedule for the federal exemption amount is as follows:

Year of Death	Exemption Amount
2007	$2 million
2008	$2 million
2009	$3.5 million
2010	Estate Tax Repealed
2011 and thereafter	$1 million

To determine your taxable estate add the value of all of your assets including the value of your home, business interests, retirement plans, and the expected benefits from your insurance.   Subtract from that amount any outstanding debts.  This net amount, is the value of your estate upon which the exemption will be applied.  If your assets exceed the exemption amount, the remaining value is your taxable estate.

Check back with us frequently as we discuss ways you can reduce or eliminate your estate taxes.