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Estate Planning in Nevada: Residency Requirements

Do you have any questions about estate planning in Nevada and the residency requirements? The Wood Law Group can answer your questions. Call us for more information.

Is Residency a Requirement for Estate Planning in Nevada?

Nevada has some of the most favorable estate planning laws in the U.S. The Nevada Constitution prohibits the collection of any inheritance tax and allows for reduced estate taxes. This means that the beneficiaries of deceased persons or decedents, whose estates are subject to Nevada law, do not have to spend so much money to access their inheritance.

These conditions make estate planning in Nevada very attractive from a tax perspective, even to those who live outside the state. Unfortunately, Nevada’s estate planning laws do not apply to everyone in the United States. Only Nevada residents and those with real property in the state can plan their estates in accordance with Nevada law and benefit from the various tax concessions available.

This residency requirement also affects other areas of the estate planning process, even for residents. There are legal restrictions that discourage Nevada residents from appointing non-residents as personal representatives or administrators of their estates after their demise. Hence Nevada residents or those who own assets in the state need to be aware of the residency requirements in the state and how it could affect them before beginning the estate planning process.

 If you’re in that position, the discussion below offers insight into the state’s residency requirements for estate planning purposes to help you decide on a suitable estate planning strategy.

The details provided here could also help non-residents who wish to benefit from the state’s estate and inheritance tax-free regime. If this is you, read on to learn how you might meet the Nevada residency requirements and secure your estate under the state’s liberal laws.

Who Is a Nevada Resident?

Nevada resident is a person who lives and is physically present in Nevada. In some cases, the law may require a person who wishes to claim residency in the state to have lived there for varying lengths of time. For example, anyone seeking annulment of a marriage or divorce in Nevada must have resided in the state for at least six weeks.

While the law does not state any mandatory residency period concerning estate planning, a person who wishes to be considered a Nevada resident must demonstrate an intention to remain in the state indefinitely.

 

How Residency Affects Estate Proceedings in Nevada

 

When a person dies, their estate would likely go through probate proceedings (handled by the district courts) before it is distributed to the beneficiaries. The decedent’s residency is important in such cases as it determines which court has jurisdiction over the case.

The rule in such cases is that the decedent is considered a resident of the place where they lived at death. The court would usually rely on the address listed on the decedent’s death certificate to determine the deceased’s place of residence. The court will only assume jurisdiction if the address listed is within the state.

 

Non-Residents With Real Property in the State

You can own real estate in Nevada even though you may reside elsewhere. But bear in mind that owning real property within the state does not bring your entire estate under the application of Nevada’s estate laws.

The law would only cover the property that is within the state. You can only get the inheritance and estate tax benefits the state offers for those properties. The rest of your estate would be governed by the law of the state where you reside.

If a non-resident with properties in Nevada dies, the decedent’s personal representatives would need to apply for ancillary probate to cover the Nevada properties. The main probate would be obtained from the decedent’s place of residence.

If you have assumed the Role of the Executor or personal representative in such a situation, the ancillary Probate Resolution Process in the state may be unfamiliar to you. If you plan to sell off the decedent’s Nevada real estate, you may also need help understanding the process of Selling Real Property in Probate. You could contact a skilled probate attorney to explain how these processes work and provide personalized guidance throughout.

 

Residency and the Choice of Administrator Where There Is No Will

When people make a will, they can appoint anyone they like to act as their executor. Nevada law does not impose residency restrictions on executors, which means non-residents can validly serve as executors in the state.

This is not the case when a person dies without a will. In such instances, the probate court would appoint an administrator for the estate from among close family members or an interested person. But here’s the catch. Only Nevada residents can be appointed as sole administrators. If a non-resident is appointed, a resident co-administrator would also be appointed to work with them.

If you’re a Nevada resident and you’d prefer a specific individual who lives outside the state to administer your estate when you’re gone, do not leave anything to chance. Consider making a will and naming the said individual as your executor as part of your estate planning strategy.

This way, you can bypass the residency requirement and ensure you have someone you trust managing your affairs when you’re no longer around. Get help from a Nevada estate planning attorney to get started.

How Do You Establish Residency in Nevada?

If you’re a non-resident who wants to obtain privileges under Nevada’s estate planning laws and the accompanying tax concessions, you must be prepared to establish your residency in the state. To be recognized as a Nevada resident, you must demonstrate that you intend to reside in the state indefinitely.

You must also be physically present in the state as much as possible. This means you’ll need a residential address in the state at the very least. You could also obtain a Nevada driver’s license from the Department of Motor Vehicles (DMV).

To avoid doubts about your intentions, consider filing a declaration of domicile in the county district court where you’re located. This declaration is a sworn statement that affirms your intention to make the state your primary residence. Contact your attorney to learn more about this process if you have questions.

 

Do You Have Further Questions About Residency and Estate Planning in Nevada? Reach Out to Wood Law Group for Answers

At Wood Law Group, we understand the fine points of estate planning laws in Nevada and how they can affect the validity of your estate planning devices, such as wills, powers of attorney, and trust. With our extensive estate planning and probate practice experience, we can answer your questions and help you create a solid estate plan to protect your assets and your future.

Contact us today to share your concerns about residency requirements or any other aspect of the estate planning process. Let us assess the situation and help you find solutions that work.

Steps to Establish Residency in Nevada

Securing Your Status as a Nevada Resident

If you’re planning to establish your residency in Nevada, several critical steps must be taken:

  1. Physical Presence and Intent: Establish a physical presence by moving to the state, showing your intention to remain indefinitely.

  2. Nevada Driver’s License: Apply for a Nevada driver’s license at the Department of Motor Vehicles (DMV), signaling your commitment to being a state resident.

  3. Vehicle Registration: Register your vehicle in Nevada, aligning your personal property with your new state residency.

  4. Declaration of Domicile: Consider filing a declaration of domicile in your local county district court to legally declare Nevada as your primary residence.

These actions not only affirm your residency status but also ensure you can fully benefit from Nevada’s favorable tax policies and estate planning advantages.