Legacy Wealth Planning in Nevada www.wealth-counselors.com 1

LEGACY WEALTH

PLANNING IN

NEVADA Learn How to Preserve Financial Wealth in Nevada Using Various Estate Planning Tools such as Living

Trusts, Wills, Powers of Attorney, Irrevocable Trusts, Charitable Giving and Others

GERALD M. DORN

RENO NEVADA ESTATE PLANNING ATTORNEY

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Estate Planning is essential for everyone regardless of economic status. If you

have been fortunate enough to establish a strong financial base for you and

your family, it is that much more essential that you plan ahead for your family’s

future. You have the ability to determine ahead of time, exactly how your

legacy will be passed on. Otherwise, your family may not benefit from your

hard work in the end.

The purpose of legacy wealth planning is to allow clients to preserve their

financial wealth using various estate planning tools such as living trusts, wills,

powers of attorney, irrevocable trusts, charitable giving and others. When these

tools are used to create a comprehensive plan for the future, the benefit can be

invaluable.

WHAT IS A LEGACY WEALTH PLAN?

Not only does Legacy Wealth Planning help to preserve your financial wealth,

but a comprehensive estate plan will also include a plan for managing your

assets in the event you become incapacitated. An estate plan can also

designate the person you want to care for your minor children at your death.

Most estate plans include a Durable Power of Attorney and a Will. However,

there are several other legal instruments that can be used to provide for your

heirs after your death. An estate planning attorney will be able to help you

create the comprehensive plan that will best fit your situation.

PROTECTING YOUR ASSETS

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Before your heirs can receive the property you leave for them, any legal

judgments or debts still

remaining at the time of your

death will need to be settled

and paid from your estate.

Therefore, proper asset

protection must be a

component of your legacy

wealth plan. Otherwise, your

debts can have serious

financial consequences. Asset Protection is simply a way to arrange your assets

so that they do not become subject to creditors when you die.

The planning process is completely legal. However, it can be tricky and must be

done properly. Each state establishes its own estate planning and asset

protection laws, which protect creditors from individuals who attempt to avoid

judgments by transferring assets into someone else’s name. So, asset

protection must be planned well in advance of any possible threat of judgment.

An estate planning attorney can aid in determining which of your assets may be

exempt from creditors. Those that are not exempt can be carefully repositioned

by your estate planning attorney, so that they will, nonetheless, be protected

from creditors.

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PLANNING FOR ESTATE TAXES

Another estate planning issue that will likely

have an effect on your legacy wealth is

estate taxes. In 2014, the personal estate

tax exemption is $5.34 million. This means

you can give a total gift up to that amount

without incurring any estate taxes. If your

total assets now exceed that amount, you

will need a legacy wealth plan in place that

will take into consideration your estate tax

liability. An experienced estate planning attorney can take the proper steps in

order to reduce the impact of taxes on your estate.

Another huge tax break is the marital deduction. This deduction allows married

couples to transfer property to one another, either during their lives or at their

death, without paying any federal estate or gift taxes on their gifts to each

other. When the spouse giving the gift dies, the value of the property passing

to the surviving spouse is deducted from the gross estate of the spouse who is

deceased. This amount is unlimited.

CHARITABLE DONATIONS

Charitable donations are not only a worthwhile investment, but they also

provide a great tax advantage as well. The federal government has created tax

deductions for donations to qualified charities in order to encourage individuals

to be philanthropic. This tax benefit can also be included in your legacy wealth

planning in order to allow you to benefit from this tax deduction.

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IT IS IMPORTANT TO REVISIT YOUR PLAN IF YOUR

CIRCUMSTANCES CHANGE

Whenever your financial status or family situation changes, your legacy plan

should be reviewed by an estate planning attorney to determine whether

revision need to be made. For instance, if your financial status has changed

significantly since your plan was first established, revisions will likely be

required.

If your plan included specific amounts to be left to named beneficiaries, any

decrease in the value of your estate will likely have consequences. So, may be

best to distribute your assets based on percentages. For instance, if your estate

plan donates $100,000 to your favorite charity and the remainder to your heirs,

a significant decrease in the value of your estate could very possibly mean your

heirs will not get nearly as much as you intend.

Let’s say you decide to leave your two children different assets worth the same

amount. You leave your son a house worth $300,000 and your daughter stock

also valued at $300,000. If the value of either asset increases or decreases

considerably, then the gifts to your children will no longer be equal. That is why

it is important to update your estate plan whenever the value of your assets

changes.

In sum, one of the most important estate planning objectives, the protection of

legacy wealth, will likely preserve your financial independence and the

independence of your family. Having a suitable legacy wealth plan can help you

achieve that objective for your family’s future.

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About the Author

Gerald M. Dorn

Gerald Dorn is a shareholder and has been a partner at Anderson,

Dorn & Rader, Ltd. Since 1998. Mr. Dorn has extensive experience

serving wealthy families and business owners in the development of

estate, tax and asset protection planning strategies. He made the

decision to focus his practice in the area of estate planning after

witnessing the personal grief and financial loss suffered by several of

his clients as a result of poor planning. These experiences motivated

him to dedicate his professional life to assisting his clients to preserve their life’s work for

their heirs and to create a lasting legacy for those they love. Mr. Dorn is able to accomplish

his mission through the use of a vast number of estate planning tools, both basic and

advanced, for all of his clients at Anderson Dorn & Rader, Ltd.

Just out of law school, Mr. Dorn helped to found Harris & Dorn, LLP., a private firm in San

Diego that concentrated on family law, estate planning and probate cases. Mr. Dorn relocated

the Reno area when he was offered a position as general counsel to a national estate

planning company, drafting documents and teaching continuing legal education classes to

attorneys, financial planners and accountants. Mr. Dorn is a frequent author and lecturer on

such topics as Revocable Living Trusts, Family Limited Partnerships and Family Limited

Liability Companies, Irrevocable Trusts, Tax Planning with Life Insurance, Charitable

Remainder Trusts, Charitable Lead Trusts, Private Foundations, Qualified Personal Residence

Trusts, Dynasty Trusts, Sales to Defective Grantor Trusts, Estate and Tax Planning for IRAs

and Qualified Plans, Trust And Estate Administration and Asset Protection. He is a member of

WealthCounsel, LLC, WealthCounsel Advisors Forum, InKnowVision, LLC, the State Bar of

California’s Estate Planning, Trust and Probate Law Section, the American Bar Association’s

Real Property, Probate and Trust Law Section and the Washoe County Bar Association.

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