Nevada Estate Planning Law

Nevada Estate Planning Law

The things you own today can become part of a legacy you leave behind for loved ones and other beneficiaries. The things you own today can become part of a legacy you leave behind for loved ones or other beneficiaries. By creating an estate plan, you have the power to decide how your assets are distributed, ensuring your wishes are carried out. This is important irrespective of the value of your wealth. Despite the importance of estate planning, only around a third of US citizens have one in place. The most common reason cited for not having one is a lack of knowledge about estate planning laws. This blog looks into Nevada estate planning laws and is an excellent read for a basic understanding of estate planning laws. 

What Is Estate Planning Law?

Estate planning law is the area of law that addresses the distribution of assets accumulated by a person in their lifetime among named beneficiaries. These laws ensure that the person’s wishes while alive are followed and minimize property division stress. This area of law covers the creation of wills, trusts, powers of attorney, etc.

Additionally, estate planning can also help minimize losses. For example, by reducing payable taxes as assets change ownership. 

Wills 

Creating a will is the foundation of estate planning. A will is a document outlining how you want your properties and assets distributed after your demise.

This document can only be legally binding if the testator writes and signs it while they are of sound mind and witnessed by two people. If you die intestate (without a will), the state takes over the role of wealth distribution, which may not align with your wishes.

Trusts

A trust is a higher level of estate planning. It’s an agreement between an estate-owned (grantor) and a trustee where the grantor authorizes the trustee to hold assets on behalf of a beneficiary for a set period. 

A trust can be revocable or irrevocable, with each option having its pros and cons. There are also other subclasses of trusts. For example, you can have a traditional trust that helps transfer wealth from one person to another or a dynasty trust that helps pass down wealth through generations. 

“Trusts ensure your assets are distributed outside of probate, streamlining the process for your beneficiaries. Depending on the type of trust, you can also leverage tax advantages,” says Nevada trusts & estates lawyer Tyson Cross of Cross Law Group.

Durable Power of Attorney

A durable power of attorney is more like a will, with the difference being that it only comes into effect while the grantor is alive. It’s a document that authorizes another person to make critical decisions on behalf of the grantor in the event of incapacitation. 

Besides the power of attorney, you may also consider Advance Healthcare Directives, which lets you designate someone you trust to make critical healthcare decisions on your behalf when you can’t due to incapacitation. 

Probate

Unless a person has created a trust while alive, their estate has to go through the probate process. This is a court-supervised process of asset distribution, which ensures that the estate doesn’t have outstanding debts, is valued correctly, and the will is validated. 

The process can be pretty time-consuming and expensive, with statutory fees in Nevada as much as four percent of the asset value, not to mention other costs such as court filing, appraiser, accounting, and legal fees. A trusts & estates lawyer can help give you a more precise figure based on your property value.