Out-of-State Planning and Probates: Considerations for Non-Nevada Residents
Do you have any out of state planning and probates issues that you need help with? The Wood Law Group can help. Call us today for more information.
Estate Planning and Probate for Non-Nevada Residents
Nevada boasts one of the most attractive regulatory frameworks in the U.S. when it comes to estate administration and planning. This is because, unlike many other states, it prohibits the collection of estate and inheritance taxes. The state’s laws also allow for the creation of domestic asset protection trusts, which allow individuals to shield their assets from future creditors.
As a result of the many benefits offered, many people from outside the state seek to benefit from these laws by making their estate plans and assets subject to them. The usual approach for people with such desires is to purchase real estate in Nevada and make a will that outlines how the asset (s) would be distributed after they pass on. That strategy may be successful for inheritance and estate tax purposes. But often, non-residents making such plans forget one crucial detail: their property may still be subject to the probate process.
Probate is avoidable in Nevada, but unlike the situation with the above taxes, avoidance is not automatic for residents and non-residents alike for property situated in the state. A Nevada property owner who wishes to bypass the probate process on behalf of their beneficiaries may need to leave comprehensive instructions and set up a system to that effect when preparing their estate plan.
In this guide, we discuss some of the probate and estate planning issues you may need to resolve as a non-Nevada resident who has assets in Nevada to ensure that you enjoy the maximum benefits available under the state’s laws.
The information here is also relevant for non-residents who wish to understand how probate over a non-resident’s estate works in Nevada. Please read on to learn more.
When Is Probate Required in Nevada?
Probate is the legal process that occurs after a person’s death in which the court supervises the administration of the deceased person’s (decedent’s) estate and distribution of the person’s assets to those entitled to them.
In Nevada, the process is compulsory in certain circumstances, including when;
- The decedent left a will
- The estate includes real estate property, regardless of the value
If your Nevada estate falls within these categories, then your estate would likely need to go through probate.
The probate process could last for months, and during that time, your loved ones would not have access to the assets you left them, which is why you ought to consider taking steps to help them avoid it.
Is Probate Required if the Decedent Made Their Will in a State Other Than Nevada?
As a non-resident, you may have made a will in your state of primary residence to cover your out-of-state property in Nevada.
Even though the will was made under the laws of a different state, it may still be executed in Nevada for the assets you have within the state. However, even though the will may have gone through the probate process in the state where it was made, it would also need to go through Nevada’s ancillary probate proceedings for wills made outside the state.
The ancillary probate process would occur in the district court in the country where your assets or one of your assets are located. If multiple assets exist in different counties, your family or personal representatives may Open a Probate Estate (begin probate proceedings) in the district court in any of the counties.
Once the process is complete, the part of your will related to your Nevada assets can be executed by your personal representative, and the assets can be distributed to your intended beneficiaries.
How Do You Avoid Probate as a Non-Novada Resident?
The probate process in many states is complex and stressful on its own. If Ancillary Probate is needed, it is equivalent to going through the same process twice.
As a non-resident, you can reduce the burden on your loved ones and help them avoid (ancillary) probate while ensuring your Nevada properties go to the right people with a comprehensive estate plan.
You could adopt several strategies to achieve this goal, including the following:
You could create a revocable living trust over your assets that you can manage while you’re alive. On your instructions, the trust assets can be passed directly to your chosen beneficiaries after your death.
You can hold each asset in joint ownership with your intended beneficiaries. After your death, the property will pass automatically to the surviving owner.
Selling Real Property in Probate is always a hassle. You can be preemptive and sell your real estate while you’re alive and transfer the funds to a bank account. You can make a payable on death election for the account. After your death, the funds would be transferred directly to your chosen beneficiary in the desired manner.
There are many factors to consider before deciding on a suitable strategy, and it might be overwhelming to work through them alone. An experienced estate planning attorney can explain the pros and cons of each strategy above and possibly offer more suggestions beyond them, depending on your unique circumstances.
Contact the Wood Law Group for Help With Your Out-of-State Estate Plan and Probate Issues in Nevada
As a non-resident seeking to take advantage of Nevada’s estate planning laws, there are many angles you need to consider. You need someone who understands the local laws to help you devise an estate planning strategy that would offer you the maximum benefits available under the law.
That’s where we come in.
At the Wood Law Group, we offer comprehensive estate planning and probate services in Las Vegas and have done so for many years. With our experience, we can help you decide on a suitable estate planning strategy that meets your needs as a non-resident and prepare the estate planning documents that would help you legalize your wishes.
If your loved one has left a will that covers property in Nevada as a non-resident, our experienced probate attorney can also help you navigate the complex ancillary probate laws and represent you diligently until your case is concluded.
Contact our Estate Lawyer in Las Vegas immediately to get started.