SimplyTrust Knowledge Base

A: When you hire an attorney to set up a trust, you’re usually paying for their time. That means the drafting of a legal document (or documents) reflecting your goals. The documents may include related estate planning documents like a pour-over will, power of attorney, and healthcare directive.The cost of attorney fees for establishing trusts varies based on location, the complexity of your estate, and how much customization you need. But here are some rough figures:National averages show that setting up a basic revocable living trust with an attorney typically costs between $1,200 and $3,000. For a simple trust in a lower-cost region, fees might be as low as $900 to $1,200. For a highly customized trust in a metro area, fees can range from $4,000 to $7,000 or more.

A: Nevada is a “trust-friendly” state. One major reason is its tax structure. Nevada has no state income tax, and it also imposes no state estate or inheritance tax. For some families, that means a Nevada-sited trust can:1) Avoid state income tax on trust income administered in Nevada.2) Operate without any separate state estate or inheritance tax layer.3) Pair federal tax planning with a relatively simple state tax environment.By contrast, Nebraska taxes individual income and retains its county-level inheritance tax system. So when you compare revocable trusts in Nebraska versus Nevada, the underlying state-tax environment can be just as important as the trust document itself.

A: Nebraska inheritance tax is a tax on beneficiaries, not by the estate itself. The rate and exemption depend on how closely the beneficiary was related to the person who passed. As of 2023, most beneficiaries fall into three main classes: Class 1 – Immediate family and siblingsParents, grandparents, children (including adopted children), grandchildren, and siblings. Each person receives a $100,000 exemption. Anything above that faces a tax of 1%.Class 2 – Certain relativesAunts, uncles, nieces, nephews, their descendants, and their spouses. Each person gets a $40,000 exemption, and amounts above that face a tax of 11%.Class 3 – Everyone elseFriends, neighbors, employees, and other non-relatives. Each beneficiary receives a $25,000 exemption, and amounts above that face a tax of 15%.Nebraska inheritance tax generally applies to all property owned by a Nebraska resident at passing and to Nebraska real estate or tangible personal property owned by nonresidents. Tax is usually due within one year of the date of passing. If someone doesn't pay on time, Nebraska law can add interest and penalties on the unpaid amount.

A: An estate tax is a tax on the estate itself before assets go to heirs. The state once had a state estate tax, but it applied only to people who passed away before January 1, 2007. After that date, the statute that created the tax simply stopped applying, so the state no longer collects it. Today, when people talk about estate tax in Nebraska, they’re usually referring to two different things that can still show up: federal estate tax and the state inheritance tax.

A: Minnesota allows revocable trusts and recognizes them as valid estate planning tools. These trusts can help residents avoid the state’s formal probate process, which is time-consuming and sometimes costly. However, Minnesota doesn’t offer enhanced privacy or asset protection for revocable trusts. Minnesota also has a state estate tax, which can apply to estates valued at over $3 million. (Although no inheritance tax.)Nevada is one of the most favorable states for trust law. Nevada’s laws make it easier to convert revocable trusts into irrevocable ones when needed. In addition, Nevada offers no state income tax and no estate tax, which can be a major advantage for high-net-worth individuals looking to preserve wealth across generations. Trusts created under Nevada law may also benefit from stronger privacy protections and flexible trust terms—especially when combined with Nevada’s dynasty trust or directed trust statutes.

A: Probate is the court-supervised process of authenticating a will and transferring assets to beneficiaries. Avoiding probate through a trust keeps affairs private and expedites asset distribution.

A: Digital execution allows electronic signatures and online notarization, streamlining management and reducing physical document requirements, particularly beneficial in Nevada.