Losing a loved one is not only emotionally devastating for a family, but it can also leave them financially devastated. The Nevada Probate Code is intended to settle a decedent’s estate as quickly as possible, and with as little expense as possible for their family. There are many family-friendly features of the Code. Below, our Nevada estate planning lawyer explains what these are.
Setting Aside of Small Estates
The Probate Code allows for small estates to be set aside for the surviving spouse and minor children if the gross value of deducting encumbrances is not greater than $100,000. The law specifically states that the estate must not be administered upon but the court has the discretion to direct debt payments that are fair. However, the court is not required to do this. If the court believes it is in the best interest of the spouse and children, the estate as a whole can be set aside for their support and the debts can be discharged.
Homestead Provisions
For most families, the biggest asset owned is their home. Due to this, the Probate Code allows surviving spouses and minor children to stay in the home regardless of claims from creditors and other charges against a person’s estate after they pass away.
Under state law, if either spouse recorded a homestead on their residence while they were married, the home is bestowed ‘absolutely in survivor’ in the event that either spouse passes away. If the homestead property was classified as community property, it is exempt not only from the creditors of the decedent, but also the creditors of the surviving spouse. If a home was separate property of the decedent, it is protected from the creditors of the decedent, but not those of the surviving spouse.
Setting Aside of Community Property
As a community property state, upon the death of a spouse in Nevada, the property of the decedent automatically becomes the property of the surviving spouse. This can be done without the added time and expenses necessary for full probate administration because the property is not subject to intestate succession rules.
Family Allowance Pending Probate
When one spouse passes away, it is not uncommon for the surviving spouse to be significantly reduced. Access to financial accounts and funds is also often limited because of the probate process.
Once the inventory is filed with the probate courts, the court or anyone with an interest in an estate can have property of the decedent set aside to the spouse and minor children of the deceased. If the property that has been set aside is not enough to support the family, the court can allow for a reasonable portion of the estate to go to the family as required by their circumstances.
However, the family support can only be paid for one year after the granting of letters of administration. Additionally, this family allowance is prioritized over any other charge against the estate with the exception of funeral expenses, administrative expenses, and expenses related to the last illness of the decedent. The family allowance is also only allocated to the individuals who have the most need.
Ownership of Estate Assets
People sometimes pass away with assets that do not belong in their probate estate. For example, someone may create a trust during their lifetime and fund it with property so the assets are not subject to the probate process upon their death. Occasionally, the decedent may not properly fund the trust, or remove assets from it inadvertently. This leaves the property subject to probate and goes against the wishes of the decedent.
The Probate Code in Nevada allows the personal representative or anyone with an interest in the estate to petition the court to transfer the property from the estate of the decedent to the legal owner. The petition must include the facts upon which it is based, as well as the names and addresses of every person who has the right to notice of the petition. In most cases, if there is enough proof of the decedent’s intention, the court will grant the relief and allow the property to avoid the probate process.
Our Estate Planning Lawyer in Nevada Can Help Your Family
One of the main purposes of estate planning is to make things easier for your family after you pass away. At Boyer Law Group, our Nevada estate planning lawyer can help you create a plan that will provide protection for you and allow your family to take advantage of the features of the law. Call us now at 702-255-2000 or fill out our online form to schedule a free review of your case and to learn more about how we can help.