Probate is the often costly, complicated, and time-consuming process of transferring a deceased person’s assets to their rightful heirs or beneficiaries. However, Nevada law provides several routes that allow certain property to bypass the court’s oversight entirely.
Understanding what assets to avoid probate under Nevada law can help you during estate administration or for those preparing their own estate plan. By working with a Las Vegas probate administration lawyer and using these legal tools, you can simplify the transfer process for your loved ones.
Probate and Non-Probate Assets in Nevada Law
In Nevada, an asset is subject to probate based on how it is legally titled or designated. Probate assets are those owned solely by the decedent at the time of death and lack a specific beneficiary or co-owner with rights of survivorship. Examples of typical probate assets include:
- Real Property titled solely in the deceased’s name
- Personal Property, such as jewelry, furniture, vehicles, and collectibles
- Bank and Brokerage Accounts without any payable on death (POD) or transfer on death (TOD) designations
- Business Interests like partnerships, corporations, or LLCs, without a clear succession plan
These assets must be managed by the executor of the estate and are distributed based on the terms of the will, or by Nevada’s laws of intestate succession if no will exists. Non-probate assets can bypass the probate court entirely and transfer automatically to the co-owner and named beneficiary immediately upon the decedent’s death.
Assets Held in Joint Tenancy
When a property is held in a joint tenancy, it includes a right of survivorship, passing immediately to the surviving owner(s) without any court action. For example, if a couple co-owns a home and holds a joint bank account, if one spouse dies, it will automatically transfer sole rights to the other spouse.
Assets with Beneficiary Designations
Many financial accounts allow the owner to designate a beneficiary who receives the assets directly upon death. These designations supersede a will and are effective outside of probate. Assets with beneficiary designations typically include bank accounts (checking and savings), CDs, stocks, bonds, life insurance, and annuities.
Retirement Accounts
Most qualified retirement accounts are inherently non-probate because they require the designation of a beneficiary. Examples include 401(k)s, IRAs, 403(b)s, and pensions, and are distributed directly by the plan administrator to the named beneficiary upon the account holder’s death.
Assets Held in a Trust
A trust is one of the most protective and comprehensive estate planning tools available. When a trust is funded, the assets in it are then legally owned by the trust, instead of any person. Upon the grantor’s death, the successor trustee manages and distributes the trust assets according to the trust agreement, entirely outside the jurisdiction of the probate court. This process allows for more privacy and the ability to avoid probate that a will cannot match.
The Importance of Estate Planning
The extent to which an estate avoids probate in Nevada is a direct result of the deceased person’s estate planning strategy. By legally protecting your assets through these estate planning tools, you can reduce the burden of time and fees associated with the probate process. Periodically review all of your beneficiary designations, especially after major life events, to maintain an effective estate plan that avoids probate under Nevada law.