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Posted on September 16, 2024 in probate
Understanding exempt and non-exempt probate assets can be confusing, especially for those unsure about the estate planning process and how probate works. At Ken R. Ashworth & Associates, we can share a clear overview of what assets are exempt from probate in Nevada.
Probate is a legal process that happens after a person passes away to ensure their assets are distributed according to their wishes and that their debts are paid. An appointed administrator manages the estate, gathers assets, pays debts, and distributes the remaining assets to beneficiaries.
Generally, most estate assets are subject to probate. Careful estate planning can, however, help to exempt some assets from the probate process. By taking the time to make sure the proper documents are in place, you can significantly reduce the burden on your loved ones and potentially save your estate from substantial probate fees, taxes, and delays.
Assets that fall under these categories can be exempt from probate:
Most assets that are subject to probate are:
Estate planning is not just for the wealthy, it is a vital step for anyone who wants to protect their family’s financial future. In Nevada, without a proper plan, your assets could be distributed according to state laws and most likely not in the way you wanted.
A well-structured estate plan ensures that your assets are distributed according to your own plans, providing financial security for your loved ones and hopefully minimizing potential family disputes. It will also protect your assets, minimize the impact of taxes on your family, and avoid going to probate.
A: In Nevada, assets subject to probate include real estate (houses and land), bank accounts, savings accounts, stocks, bonds, other investments, personal belongings like furniture, jewelry, vehicles, and business interests. These are subject only if they are solely owned by the deceased or not in an established trust.
A: Joint ownership means there will be a direct transfer of the property or assets to the surviving co-owner without having to go through probate. You can set up joint ownership with an estate planning attorney. Married couples automatically have community property with the right of survivorship, which means that the surviving spouse will inherit the deceased spouse’s share.
A: The most effective way to avoid probate or to minimize the amount of your estate that will have to go through probate is to do proper estate planning. A comprehensive estate plan consists of but is not limited to living wills, trusts, and appointment of a durable power of attorney and a healthcare power of attorney. Properly preparing your estate for your passing will provide you peace of mind while looking out for your loved ones.
A: Nevada offers a simplified process for small estates. If the estate’s value is under a certain threshold, it may qualify for summary probate procedures, which are faster, less costly, and simpler. Besides the estate being small, there must also be no contests or objections from beneficiaries or creditors and there is a limited number of assets for the estate to qualify for a summary probate.
A: If there are no assets in an estate, probate is generally unnecessary. Probate is used to transfer assets to heirs, but if no property, bank accounts, or valuables exist, the process can be avoided. It could be beneficial to appoint an executor if there still are debts that need to be settled and if the decedent’s final tax filings still need to be completed.
An estate planning attorney can help set up a plan for your assets when you die. They can provide personalized advice, knowledge, and peace of mind that your affairs are in order and your wishes will be followed.
Once you have the estate planning document in place, it is important to update it whenever there are life changes, such as the birth of children, the loss of a loved one, marriage, divorce, or a significant increase in wealth. You may also need to update your powers of attorney or modify your will when your minor children reach adulthood. By taking the time to create and maintain an effective estate plan, you can provide for your loved ones and ensure that your legacy lives in the manner you desire.
Knowing which assets will go through probate allows you to plan accordingly. Ken R. Ashworth & Associates can help you craft an estate plan that minimizes probate and provides support for you and your family upon your death. To schedule a consultation, reach out to us today.
