Nevada Estate Planning For Families with Minor Children
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Transcript of Nevada Estate Planning For Families with Minor Children
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 1
NEVADA ESTATE
PLANNING FOR FAMILIES WITH
MINOR CHILDREN “Most parents try their best to plan for the unexpected, at least for
the sake of their children. In estate planning, the same is true.”
BRADLEY B ANDERSON RENO NEVADA ESTATE PLANNING ATTORNEY
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 2
Families with minors need to have at least a basic estate plan in place, should
anything unexpected happen to the parents.
The proper estate plan can answer the most important questions, not only for
your other relatives, but also for the court, if you are no longer there to take
care of your young children.
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 3
DECIDING WHO SHOULD RAISE YOUR CHILDREN
No doubt, the most critical question, in estate planning for families with minors,
is who will raise your children if
neither parent is able to.
This important decision has the
potential to substantially shape
the lives of your children, so it
is not a question to be taken
lightly. It is a one that must be
made after the parents have
discussed it with the potential
guardian(s), to make sure that
they are willing to take on this
critical role.
WHY PLANNING AHEAD
IS ESSENTIAL
Once you have made the
decision, the nomination of
your chosen guardian(s) must be incorporated into your overall estate plan.
Planning ahead is essential for at least two reasons. First, it puts your mind at
ease, because you know if anything unexpected happens, your children will be
provided for. The other reason is that, having your plan already in place,
prevents your family from fighting over who should have custody of your
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 4
children. There is no underestimating the natural affinity parents feel for their
own children. This natural instinct will likely cause a dispute between
grandparents and in-laws. Your children do not need to be embroiled in a
heated custody battle.
WHO SHOULD CONTROL AND MANAGE THE ASSETS AND
INSURANCE PROCEEDS?
Although your children will receive your assets, after you death, without an
estate plan, those assets will not be managed by a trustee that you would
choose. Instead, the assets left for your children will be administered through
the court. In order to receive any funds, your child’s guardian will be required to
file a petition with the court, on your child’s behalf. Further, the assets will then
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 5
be distributed outright to your children at the age of majority – 18 in most
states.
CREATE A TRUST
A trust names the trustee of your choice to manage your children’s money until
they are old enough to handle it themselves. The trust only goes into effect if
certain conditions are met, such as the death of both parents. You can set those
conditions any way you choose.
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 6
WHEN SHOULD YOUR CHILDREN HAVE ACCESS TO THE
ASSETS?
Again, without a trustee to manage your children’s money and other assets, the
court will oversee the estate. However, the court automatically loses the
authority to manage your children’s assets once they have reached the age of
majority in your state.In some states, including Nevada, that would be age 18.
You may not believe your children will be wise or mature enough to properly
manage their assets at that age. When you create a plan ahead of time, you can
determine when the funds should be released to your children.
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 7
PLANNING FOR SPECIAL NEEDS CHILDREN
If you have special needs children, you have more issues to be concerned with.
Many parents are not
prepared for the
long-term expense of
caring for special
needs children.
Couple that
responsibility with
trying to prepare for
their own long-term
care and retirement
needs, the
responsibility can
seem overwhelming.
Planning for special
needs children is
something that must
be done as soon as
possible. That
includes determining
who will continue to provide their care, after you are gone.
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 8
ESTABLISHING A SPECIAL NEEDS TRUST
A Special Needs Trust is the most important component of any special needs
plan for your minor children. This specific type of trust is designed to provide
security and care for your special needs child, without putting their eligibility for
needs-based benefits at risk. There are two types of special needs trusts you
can consider including. A Supplemental Care Special Needs Trust is the most
common type. It is meant to be a secondary source of benefits, to be used after
government benefits are exhausted. A General Support Special Needs Trust, on
the other hand, is meant to be the primary source of benefits for your child.
These are just a few issues families with minor children may face in the estate
planning process. Discuss these issues with your estate planning attorney.
If you have questions regarding minor children, or any other estate planning
needs, please contact Anderson, Dorn & Rader, Ltd., eitheronline or by calling us
at (775) 823-9455.
Estate Planningin Nevada for Families with Minors www.wealth-counselors.com 9
About the Author
BradleyB Anderson
Prior to founding his own firm in 1995, Mr. Anderson served as a
senior counsel for two major financial institutions and witnessed
the often devastating effects of ineffective estate planning with
many customers of those institutions. When he eventually decided
to venture out on his own, this experience led him to focus
exclusively on estate planning, providing his clients with a full
range of basic and advanced planning options.
Mr. Anderson began his professional life as a teacher of mentally-challenged, visually impaired
students. After four years as a special education teacher, Mr. Anderson returned to school to
obtain his law degree and begin a second career. Upon finishing law school, he went to work
for a civil litigation firm, spending five years handling litigation, probate and wills work. He
then moved on to Wells Fargo Credit Corporation where he served as senior counsel. In 1990
he accepted a position with the First Interstate Bank Legal Division, where he had
responsibility for several divisions, including the Trust Department. In 1995, he began his own
practice as Bradley B Anderson, Attorney at Law. The firm has continued to grow into the
premier estate planning law firm we see today.
Anderson, Dorn& Rader, Ltd. Legacy and Wealth Planning Attorneys 500 Damonte Ranch Parkway Suite 860
Reno, NV 89521 Phone: (775) 823-9455 Fax: (775) 823-9456