Probate is a legal process an estate goes through after the owner dies. If a person dies without a valid will, the court must decide how to pay creditors and divide assets. To avoid probate, meaning to avoid probate making those decisions, you need a legally binding will in place that meets all state requirements. If you have a will like this, the probate court still oversees the estate administration process, but does not ultimately make those decisions.
To avoid the court making decisions, or avoid probate in Nevada, there are several things you can do now that will protect your estate over the long term, and one of them is working with a Las Vegas probate lawyer.
Create a Valid Will
A will is one of the most important tools you have for avoiding probate court. While the court still oversees that the named executor handles the decision-making according to your wishes outlined in the will, it has far less interference in the matter. A will provides guidelines that, unless contested, are considered your last wishes.
A will should communicate all your wishes and needs. That includes what your debts and assets are, who receives what, and decisions around any concerns you have. Ensure that these documents are created in a way that meets all legal requirements.
Your attorney will help ensure your will meets all Nevada legal requirements (NRS Chapter 137), including being signed in front of witnesses and properly documenting your assets. Having a will also allows you to use other financial tools to help your assets avoid probate.
Utilize Retirement Accounts and Insurance Policies
If you want to keep assets out of the court’s reach fully, even through probate with a will, you can do so by creating legally binding documents that protect those assets. There are two specific tools commonly used for this purpose. Those include:
- Insurance policies: The proceeds from a life insurance policy pay directly to the named beneficiary. There are no taxes on those assets. Your named beneficiary has no limits on the use of those funds. Life insurance proceeds are not a part of your estate and, therefore, do not go through probate.
- Retirement accounts: Specifically, Individual Retirement Accounts (IRAs) can also serve as a financial tool for you. With these accounts, you can name the beneficiary who will receive the funds directly after your passing. They do not go through the probate process at all.
Your attorney can help you establish additional tools to help with your asset management to keep them out of probate, including the use of Payable on Death Accounts and Revocable Living Trusts. These financial tools allow you to make decisions about your assets now, put the legal tools in place to make that happen, and then know that your assets will transfer to the named beneficiaries after your death, never going through probate.
How an Attorney Can Help You
In each of these situations, it is critical to have a legal team in place to help you. The first step in avoiding probate in Nevada is to create a will that outlines your wishes and ensures it is valid. Then, your Las Vegas probate administration attorney can help you create additional tools, like those mentioned here, to move assets now, protect them from creditor claims, and minimize any risks going forward.