Which Assets are Exempt from Probate in Nevada?
When an individual dies owning assets in his or her individual name, the process by which the individual’s assets are transferred to his or her heirs is through a court proceeding known as “probate.” In some cases, a probate may not be necessary or may be accomplished through simplified proceedings. For example, if there are insufficient assets to require a full probate, or if the deceased person’s assets will be transferred by contract to beneficiaries already designated by the deceased person, then the probate process may be simplified or not required at all.
Which types of assets can be excluded from probate to avoid or simplify the process? We will answer that question in this article.
If you or your family needs help, the experienced Las Vegas probate lawyers at Lee Kiefer & Park can help. We represent beneficiaries, personal representatives, and creditors in all probate cases. Call our probate law firm at 702-333-1711 and schedule a consultation.
What is Probate?
“Probate” is the court-monitored process of:
- Proving a will’s validity
- Taking inventory of estate debts and assets
- Paying debts and obligations of the deceased person, as required
- Transferring remaining property to the deceased person’s heirs or chosen beneficiaries
If the deceased person does not have a will, a similar administration process is followed to settle the deceased person’s affairs.
When Is Probate Required in Nevada?
After a person dies in Nevada, the process for settling the deceased person’s estate hinges on the nature and value of the deceased person’s assets, and whether the deceased person left a valid will. If there are no assets to include in the estate, or minimal probatable assets (of total value less than $25,000, and no real estate), then there is typically no need for the probate process.
If a probate is required, then the probate process will change the legal title of estate assets to those who are entitled to the assets, which may include:
- Creditors with valid claims
- Government agencies that are owed taxes
- Beneficiaries named in a will, or the next of kin if there is no will
Nevada District Courts monitor the probate process.
Which Assets Do Not Go Through Probate?
The process starts with determining which assets must pass through the deceased person’s estate and, if such types of assets exist, determining their value. Generally, if there are few assets included in a deceased person’s estate with relatively low value, the simpler and faster the process will be. One way to help avoid probate is to have as many of your assets as possible in non-probate assets. Estate planning using a living trust may help you achieve that goal.
Non-probate assets may pass by operation of law or pursuant to a contract’s terms.
1. Operation of law
Assets that pass by operation of law include assets held by:
- Two or more people in joint tenancy, including those with a “right of survivorship.” In joint tenancy, after one of the joint tenants passes away, the ownership interest in the property automatically passes to the surviving owners.
- Married spouses as community property with a right of survivorship
Under Nevada law, a landowner can also choose to make a “deed upon death” (also known as a “transfer-on-death deed,” “beneficiary deed,” or “deed on death”) to transfer real estate to a named beneficiary or beneficiaries upon the landowner’s death without having to go through probate. A deed upon death can be amended or revoked at any time during the owner’s lifetime.
2. Under the terms of a contract
Assets that pass by contract might include business interests subject to a buy-sell agreement among the business owners, or one or more of the following types of assets:
- Retirement accounts (Keogh accounts, 401ks, IRAs, and qualified plan benefits)
- Annuities
- Life insurance policies
If you’re investing in these types of instruments, there should be a primary beneficiary designated to receive the proceeds if they outlive you, and a contingent beneficiary in case the primary beneficiary predeceases you.
Which Assets Go Through Probate?
In short, all of the deceased person’s property that doesn’t pass under a trust, under contract terms or by operation of law, and is either real estate or has a combined value of more than $25,000, will pass through probate. This most often includes assets with no co-owner holding survivorship rights or without a beneficiary designation. A probate lawyer can help you make this determination.
How Are Assets Inherited if There Are Insufficient Assets to Require Probate?
If there are no real estate holdings and the value of probate assets is less than $25,000, then the individuals entitled to such assets (either by will or as heirs according to Nevada law, as the case may be) may initiate a transfer by a simple Affidavit of Entitlement executed 40 days after the deceased person’s death, and avoid the probate process. If this is the course of action you’re considering, consult with a probate attorney to ensure it is done properly.
Lee Kiefer & Park are Probate Attorneys You Can Trust
If you or your family need a probate attorney in Las Vegas, the experienced probate law firm of Lee Kiefer & Park can help. Call us at 702-333-1711 or use our online contact form to schedule a consultation.
Attorney Kennedy Lee practices in all aspects of trust and estate law. He views all legal issues from multiple angles (e.g. from litigation to administration point of view) to provide a higher quality of service to our client.
