What Is Estate Planning?

Estate planning is the process of deciding in advance who receives your assets, who makes decisions for you if you cannot, and how to pass everything on with as little cost and delay as possible. A basic plan usually includes a will or a trust, powers of attorney, and health care directives.

What does estate planning include?

Estate planning includes the legal documents that control your assets and your care, both during your life and after death. A typical plan has a few core pieces:

• A will that names who inherits your property and who will carry out your wishes.
• A living trust, in many cases, to pass assets without probate and manage them if you become incapacitated.
• A financial power of attorney that lets someone handle money matters if you are unable to.
• A health care power of attorney and advance directive that state your medical wishes and name someone to speak for you.
• Beneficiary designations on accounts and policies that line up with the rest of your plan.

Why is estate planning important?

Estate planning matters because without it, the state decides what happens to your assets and who manages your affairs. A plan lets you choose your heirs, avoid or reduce probate, name guardians for minor children, and prepare for the chance that you become unable to make decisions. It also spares your family from guesswork and conflict during an already hard time.

Do you need an estate plan if you don't own much?

Yes. Estate planning is not only for the wealthy. Even a modest estate can end up in probate, and everyone can benefit from naming who makes their medical and financial decisions if they become incapacitated. If you have minor children, a plan is where you name who would raise them. The size of your estate changes the details of a plan, not the need for one.

What is the difference between a will and a trust?

A will takes effect only after death and usually has to go through probate to be carried out. A living trust can take effect right away, lets your assets pass without probate, and can manage those assets if you become incapacitated. Trusts use both a will and a trust with the will acting as a backstop for anything not placed in the trust. The right choice depends on what you own and your goals.

What happens if you die without an estate plan in Nevada?

If you die without a will or trust, Nevada's intestate succession laws decide who inherits, generally starting with your spouse and children. Your estate still goes through probate, but the court follows the statute rather than your wishes. That can mean assets pass to relatives you would not have chosen, and it takes away your say over who manages the estate or cares for your children.

When should you start estate planning?

The best time to start is now, while you are healthy and able to make clear decisions. Major life events are natural moments to create or update a plan, such as marriage, a new child, buying a home, a divorce, or a change in health. A plan is not something you set once and forget either, since it should be reviewed every few years and after any big change.

Building a plan that fits your family

Estate planning gives you control over your assets, your care, and your family's future, and it does not have to be complicated to be effective. If you are ready to put a plan in place in Las Vegas, the team at Ocampo Wiseman Law can walk you through the options and build one around your goals.

This article is general information about Nevada estate planning and is not legal advice. Every situation is different, so speak with a licensed Nevada attorney about your specific needs.