When a person passes away, their estate must often go through probate. The probate process can be long and expensive. The costs associated with probate are taken from the estate, which essentially reduces the size of the estate and the amount of assets available to beneficiaries. Fortunately, there are several ways to avoid the probate process but they involve careful estate planning. Below, our Nevada probate lawyer explains what these are.
What is Probate in Nevada?
Probate is a court-monitored process that administers a person’s estate after they pass away. If a person passed away with a will , the personal representative must act according to its terms. This includes distributing property to the beneficiaries. The personal representative is also named within the will. The court oversees this process, as the will is submitted to the probate court and validated.
If a person passes away without a will, the probate court will appoint a personal representative. The property within the estate will also be distributed according to the intestacy laws in Nevada.
Creditors typically have 90 days to make a claim against the estate if the deceased still owed debt. This can also reduce the amount of assets available to beneficiaries. The entire process typically takes between six months to one year to complete. For this reason, many people choose to take necessary steps to avoid probate. A Nevada probate lawyer can advise on the strategy right for you.
Life Insurance Policies
If you have a life insurance policy and you pass away under the covered conditions, your beneficiaries can receive the proceeds from the policy immediately after your death. There is no need to go through the probate process and the court will not be involved in the transaction.
Retirement Funds
Like life insurance policies, you can also name a beneficiary on your retirement account. The savings would also be distributed to the beneficiary immediately upon your death and would not have to go through probate.
Payable on Death Accounts
Financial institutions provide the opportunity to add a beneficiary when you open an account. These are known as transfer on death (TOD) accounts or payable on death (POD) accounts. Beneficiaries do not have access to these funds during your lifetime. After you pass away, the beneficiaries can then obtain a death certificate and show it to the financial institution. The funds can then be distributed to the beneficiary immediately and without probate. When property is titled payable on death, beneficiaries cannot sell the property for 18 months. A Nevada probate lawyer can advise of the rules associated with these designations.
Community Property
You can add another person’s name to the title or deed of your home, making them a co-owner of the property. This is known as joint tenancy with right of survivorship. Only a handful of states recognize Community Property with Right of Survivorship, and Nevada is one of them.
The title on the property must include the words “with Right of Survivorship.” The right of survivorship is assumed when there is joint tenancy, but not with community property, which is why you must include the entire phrase. If one of the co-owners passes away, the other co-owner immediately becomes the sole owner and the probate court is not involved.
Trusts
Trusts are one of the most common tools people use to help their loved ones avoid probate. When you create a trust, you fund it with property you would like to avoid probate. You can name yourself as the trustee during your lifetime, allowing you to manage and control the property within the trust. You must also name a successor trustee who will manage the trust, and the property within it, after you pass away. Your successor trustee will distribute the property in the trust to your beneficiaries, according to the instructions within the trust.
Trusts are separate legal entities from you and your estate. Due to this, any property held within the trust is not subject to probate.
Our Probate Lawyer in Nevada Can Draft the Estate Planning Tools You Need
There are many estate planning tools that can help your loved ones avoid probate and protect their inheritance. At Boyer Law Group, our Nevada probate lawyer can review your situation, advise on the estate planning tools that may be right for you, and draft your documents so you and your family are protected. Call us now at 702-255-2000 or contact us online to schedule a consultation with our experienced attorney and to learn more about how we can help.