Nevada is one of the best states to live for people who want to protect their assets and pass them along to family members in the future. Nevada laws are very different from most other states concerning wills and trusts. This is important when you want to protect your assets, provide for your family, and ensure your wishes are met when you're unable to communicate them yourself.
FindLaw's section on Nevada estate planning laws describes these laws in detail, with links to the most recent Nevada state codes.
Nevada Wills
Although writing your last will and testament sounds like something your great-grandfather did, it's just as important now as it was a hundred years ago. Your "last will" may not be a final document, depending on when you make it, but you should have something that tells your loved ones how you want your property divided after your death.
There are DIY estate planning options available for simple wills. If your situation is more complex, you should consult legal counsel before completing your will.
What Makes a Nevada Will Valid?
In Nevada, as in every state, there are specific requirements for a valid will. If you don't follow them, your will can be contested, or challenged, after you die.
In Nevada, a will must:
- Have two witnesses who are not beneficiaries. Spouses or adult children who may inherit in your will cannot witness your signature.
- Be "self-proving," that is, the two witnesses must witness your signature and then witness each other's signatures.
- Be a hard copy. Nevada will not recognize an electronic will.
Nevada Trusts
A trust is a method of granting assets and property to beneficiaries without a will. Nevada state laws recognize several types of trusts.
The person making the trust (the "grantor" or "settlor") designates property for the trust. The trust must have a trustee and at least one beneficiary. The trustee manages the trust property while the settlor is alive, according to the settlor's trust directives. After the settlor's death, the trustee distributes the property based on the settlor's wishes.
There are a few types of trusts:
- A revocable living trust is the trust most people think of when they consider making a trust. You can alter this trust during your lifetime. The settlor can be a beneficiary and the trustee if there is an alternate trustee and at least one other beneficiary.
- An irrevocable trust usually cannot be changed. A living trust becomes irrevocable upon the settlor's death, but some living trusts are also irrevocable prior to death. Irrevocable trusts avoid estate taxes or court judgments. Special needs trusts, which provide income for individuals who receive government benefits, are a type of irrevocable trust. These trusts are also used for minor children who have their own income, and so-called “spendthrift" trusts to prevent access by certain individuals.
Nevada law allows irrevocable trusts to be decanted rather than modified through court order. Decanting lets the trustor, trustee, and beneficiaries "pour" the trust assets into a new trust with new directives, creating a new trust. This requires the services of an estate planning attorney who specializes in modifying trusts
Powers of Attorney
Power of attorney laws in the state of Nevada let your agent make decisions for you if you cannot make your wishes known. Every adult should have a power of attorney. While you may be healthy today, it is impossible to predict when you may be in an accident or otherwise incapacitated.There are two types of powers of attorney in Nevada:
- General or financial durable power of attorney: This document allows you to choose a person (agent) to act for you in financial, real estate, and personal matters.
- Power of attorney for healthcare: This document allows you to name someone to make healthcare decisions on your behalf.
Estate Planning and Probate
A comprehensive estate plan helps you avoid probate. Probate is the court process determining the value of an estate and who has the right to the decedent's personal property and real estate. Then, it distributes the assets to heirs and creditors. Nevada probate courts typically take six to eight months to open probate once the personal representative files.
If the decedent died intestate (without a will), the process can take longer because the court must appoint a personal representative. Nevada intestacy laws resemble those of other states, and most property goes to surviving spouses and children. If you do not want your property to go to your spouse and children, or you want specific items to go to certain people, you must have a will.
A trust avoids probate by letting the trustee distribute property and pay estate taxes and creditors directly from the trust. The court does not need to assess the property value because the trustee has already done this. Nevada probate law is unique in having a 365-year Rule Against Perpetuities, meaning multiple generations can inherit the same property.
Finding an Estate Planning Lawyer
Whether you want to write your own will or need legal advice on setting up a complex trust, you should have the services of a Nevada estate planning attorney. You need someone who knows the unusual Nevada wills and trust laws, and can guide you through the correct processes to make your estate planning accurate and legal.
