What Happens to Your Assets When You Pass Away in Nevada?

The Nevada probate process is a court-supervised procedure for distributing assets and paying any debts after a person passes away. Probate may seem confusing and overwhelming but you can utilize estate planning tools such as wills, trusts, and beneficiary designations to influence distribution decisions. Let’s break down asset distribution in Nevada.

The Probate Process

When is Probate Required?

In Nevada, only certain estates require probate. Estates valued under $25,000 may qualify for small estate affidavit, avoiding probate. Estates valued between $25,000 and $100,000 may use a simplified probate process designed to make probate less burdensome. Estates valued over $100,000 typically require a formal probate process and follow a typical step by step process to get probate started:

1. File a will or a petition if there isn’t a will.
2. An executor or administrator is appointed.
3. Notification of creditors and heirs.
4. Identifying and appraising of assets.
5. Payments of debts, taxes, and expenses.
6. Distribution of remaining assets to heirs.

Distribution of Specific Assets

Real Estate (House or Property)

• Joint Tenancy with Right of Survivorship (JTWROS): When two or more people own property together, JTWROS (NRS 111.675) ensures that when one owner dies, their share automatically transfers to the surviving owner(s) without probate.
• Community Property with Right of Survivorship: Nevada is a “community property” state (NRS 123.220), meaning that each spouse owns 50% of the property assets and debts acquired during the marriage. When one spouse dies, this ensures their share automatically transfers to the surviving spouse without probate.
• Sole Ownership: A person who solely owns property with no co-owners, the property will be distributed per the will’s instructions. If there isn’t a will, the estate will fall under Intestacy Laws where Nevada’s intestate succession laws (Chapter 134) determine who inherits the estate which is typically a spouse, children, or close relative.

Vehicles (Cars, Boats, Etc.)

If the decedent had a Title of Transfer on Death (TOD) to name a beneficiary, the beneficiary will automatically inherit an asset without probate after the owner’s death. If there isn’t a TOD designation, the vehicles are subject to probate or small estate affidavit process.

Jewelry and Personal Property

Jewelry and personal property is distributed based on instructions in a will or trust. If there isn’t a will, distribution follows intestacy laws where Nevada’s intestate succession laws will determine who inherits the estate.

Bank Accounts

If the decedent had a Payable on Death (POD) account, the named beneficiary will immediately receive funds upon the owner’s death, bypassing probate. If the decedent co-owned a joint account, the funds will automatically pass to the surviving co-owner(s) but if the decedent’s accounts didn’t have any named beneficiaries, they will go through probate.

Investments (Stocks, Bonds, Retirement Accounts)

IRAs, 401(k)s, and life insurance policies allow owners to beneficiary designations, ensuring the assets will transfer directly to the beneficiary without probate. However, if the accounts didn’t have a beneficiary designation, they are subject to probate and trust revisions.

Intestate Succession (If No Will)

If the decedent had a spouse and children, community property goes to the surviving spouse and separate property will be split between the spouse and children. If the owner doesn’t have a spouse or children, assets pass to parents, siblings, or extended family members. If there are no heirs, assets transfer to the state.

Avoiding Probate

There are a few ways, some listed above, to bypass probate including:

• Revocable Living Trust that allows assets to transfer directly to beneficiaries.
• Joint Ownership with Right of Survivorship to ensure living co-owners will receive the decedent’s share.
• POD and TOD accounts bypass probate with proper beneficiary designations.
• Small Estate Affidavit allows heirs to claim assets quickly for estates under $25,000.

Taxes and Debts

Any debts and liabilities will be paid before distribution to estate heirs and Federal Estate Tax only applies to estates exceeding federal exemption limits. Nevada does not have a State Estate Tax so that doesn’t apply.

Probate Attorneys in Las Vegas

Our experienced probate attorneys are ready to answer your questions and provide expert guidance throughout the process. Whether you’re dealing with a small estate or a large one with complex legal and tax issues, Michaelson Law’s skilled team is equipped to assist you in the best way possible. Contact us today to schedule a consultation!