Nevada is largely associated with vibrant casinos and sparkling lights. For many people, though, it is a tax haven. Nevada does not have income, gift, or inheritance taxes. Under this beneficial tax structure, residents of the state can pass on their wealth without worrying about significant taxes. Still, this does not mean that beneficiaries do not have to worry about inheritance taxes at all. There are still many laws and taxes that can come into play and it is important to understand what these are.
What are the Inheritance Laws in Nevada?
When a person passes away and has left a will behind, their property is distributed according to the provisions within the document. When a person passes away without a will, Nevada’s intestate laws will apply.
Nevada is a community property state, which means marital property is considered to be the property of both spouses equally. As such, when a person passes away without a will, the surviving spouse is entitled to 100 percent of marital property. Separate property will be distributed to heirs according to the intestate laws.
If a person only has a surviving spouse, they will receive all of the property within the estate. If there is one surviving child, the spouse will receive half of the property and the child will receive the remaining half. If there is more than one surviving child, the spouse will receive one-third of the property and the remaining two-thirds will be divided among all children.
What is an Inheritance Tax?
Inheritance taxes are applied to the property of someone who has passed away, including accounts and real estate. On the other hand, estate taxes are imposed on a person’s estate after they pass away. When estate planning, it is critical to understand the difference between these two. While the estate will pay for estate taxes, it is the beneficiaries who will pay for inheritance taxes.
Only a handful of states impose inheritance taxes on beneficiaries. These include Kentucky, Iowa, Nebraska, Maryland, Pennsylvania, and New Jersey. Again, Nevada does not impose an inheritance tax on beneficiaries. Estate taxes may be applied at the federal level.
When Might Taxes Apply?
Nevada repealed its estate taxes, also referred to as pick-up taxes, in 2005. However, this does not mean that there are no taxes applied to estates at all. Federal estate taxes may also apply.
In 2025, the federal estate tax ranges from 18 to 40 percent. It also only applies to property valued over $13.51 million. When the property within an estate is below this, it is exempt from paying taxes. People may also have to pay taxes if they inherit property from a state that does impose inheritance taxes. This is true even when the person inheriting the property lives in Nevada. For example, if a relative in Pennsylvania leaves an inheritance for a resident of Nevada, they may have to pay an inheritance tax on the property.
How to Minimize Estate Taxes
Although Nevada does not impose inheritance taxes on property, it is still important to consider federal estate taxes. There are certain tips you can follow to minimize the amount of taxes you are liable for paying. These are as follows:
- Gifts: The annual gift tax exclusion for 2025 is $19,000. This amount was increased from the $18,000 in 2024. This means you can gift property with values up to $19,000 without incurring any estate taxes. Married couples can also gift up to $38,000 in property without worrying about taxes.
- Donations: Making a charitable donation upon your death can reduce the value of the property within your estate. This is an effective way to lower the tax burdens it will incur. Additionally, any charitable donation made is tax-deductible, which means they can also help lower your income taxes.
- Create an estate plan: One of the best ways to reduce your estate taxes is to create a comprehensive estate plan. Creating a plan will allow you to not only optimize your asset placement but also help your loved ones avoid the probate process. An estate planning lawyer can help you structure your estate strategically so you can maximize marital deductions and tax exemptions.
Call Our Estate Planning Lawyer in Nevada for a Free Consultation
Planning for your estate is critical to protect your beneficiaries from inheritance taxes. At Boyer Law Group, our Nevada estate planning lawyer can create a comprehensive plan that will protect you and your loved ones. Call us now at 702-255-2000 or contact us online to schedule a free review of your case and to learn more about how we can help.