How to Avoid Probate in Nevada

Avoiding probate in Nevada can simplify the process of transferring assets after death, saving time and money for your loved ones. Going through probate, on the other hand, can significantly reduce the size of the estate due to fees and other costs, while delaying the delivery of financial benefits to heirs and beneficiaries. There are several ways to avoid this situation, including setting up a living trust, designating beneficiaries on accounts and holding property jointly.

A financial advisor can help you and your family manage the estate planning process.

Understanding Probate in Nevada

Probate is the legal process that administers a deceased person's estate so that debts are paid and assets are distributed to beneficiaries. In Nevada, probate involves validating the will, inventorying the estate's assets and resolving any claims from creditors before distribution.

This process begins in the Silver State with the filing of a petition in the county where the decedent resided. An executor or court-appointed administration is responsible for managing the estate, which includes notifying creditors, paying debts and distributing the remaining assets according to the will or state law if there is no will.

The time required to complete probate in Nevada varies, typically ranging from several months to over a year. Factors influencing the duration include the estate’s complexity, the presence of a will and any disputes among heirs or creditors. Simple estates with minimal debts and clear instructions can often proceed faster.

Probate for Small Estates

In Nevada, estates valued at less than $300,000 may be able to transfer assets to a surviving spouse, children or other heirs without going through full probate. Depending on the size of the estate, a couple of different processes may be used.

Estates that are valued at $25,000 or less and do not include real property such as real estate or vehicles may be able to use a small estate affidavit . If approved by the court, this affidavit can empower a family member or other person to claim and distribute assets without going through probate.

For a larger estate, worth up to $100,000 , a surviving spouse may be able to successfully petition the court to allow distribution of assets without first considering debts the estate may owe. If the court approves the debt set aside petition, heirs may receive assets without additional court supervision, cost or delay.

Larger estates up to $300,000 may still qualify for a somewhat abbreviated process called summary administration. This is less complicated, costly and time-consuming than full probate, but still requires court supervision.

Joint Ownership

Owning property jointly is a common and convenient way to ensure the property isn't subjected to probate when one co-owner dies. In Nevada, this type of ownership is called joint tenancy . When two people own property as joint tenants, the property goes directly to the surviving co-owner on the death of the other, bypassing probate.

Living Trusts

Living trusts offer a reliable and popular option for avoiding probate in Nevada. When you set up a living trust, you transfer ownership of your assets to the trust while retaining control as the trustee. Upon your death, the successor trustee you appoint distributes the assets to your beneficiaries according to your instructions. This transfer bypasses probate entirely, offering privacy and efficiency.

Transfer-on-Death Designation for Securities

Transfer-on-Death (TOD) designations provide a particularly straightforward way to bypass probate for securities in Nevada. By registering your securities account with a TOD designation, you can name a beneficiary who will directly inherit the assets upon your death. There is no need for the securities to go through the probate court.

Setting up a TOD designation is typically done through your brokerage or financial institution, requiring you to complete a simple form. Once in place, the TOD designation ensures that your designated beneficiary will automatically receive your securities without delay.

Payable-on-Death Designations for Bank Accounts

Similar to TOD designations, payable-on-death (POD) designations can shield bank accounts from probate in Nevada. By naming a beneficiary directly on your account, the funds will automatically transfer to them upon your death without probate involvement.

This designation can be set up through your bank by filling out a form that names your chosen beneficiary. This approach can not only speed up the transfer of assets but also keeps your financial matters private, as probate proceedings are public records.

Transfer-on-Death Deeds for Vehicles and Real Estate

While transfer-on-death designations can be used to keep securities and brokerage accounts out of probate, transfer-on-death deeds can do the same for vehicles and real estate.

This type of deed allows the vehicle to pass directly to a named beneficiary without going through the court process. To set up a TOD, you need to complete a form from the Nevada DMV and specify the beneficiary. The vehicle remains in your name until your death, and the beneficiary gains ownership immediately afterward.

When using a TOD deed for real estate, you'll need to fill out the necessary paperwork and record it with the county recorder's office where the property is located. The property will automatically transfer to the beneficiary when you die, avoiding the delays and costs associated with probate.

Bottom Line

By carefully planning and using common estate planning strategies like living trusts, joint ownership and transfer-on-death designations, you can simplify the transfer of assets and minimize the challenges of probate in Nevada.

Estate Planning Tips

• A financial advisor can help you avoid common estate planning mistakes that could cost you and your family money. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now .
• For a primer on Nevada's inheritance laws, you can read SmartAsset's guide .

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