Depending on the value of an estate, Nevada law deals with the probate process differently. Those who qualify for set aside probate in Nevada are typically smaller estates valued at less than $100,000. Working with a Las Vegas probate administration lawyer can help you understand if the estate you are administering qualifies for any of the state’s simplified probate processes.
What is Set-Aside Probate?
For relatively small estates, Nevada law offers a more streamlined probate process. Unlike the full probate administration process, a set-aside probate does not require the appointment of an executor and avoids formalities such as court supervision and accounting.
As the name denotes, a beneficiary or heir will typically file a petition with the court requesting an order to set aside the assets. These assets will then be distributed to pay outstanding fees and creditors, and then to the beneficiaries of a will. If there is no will, assets will be distributed under Nevada intestate succession laws.
What Estates Qualify for Set-Aside Probate?
Estates including real property valued at $100,000 or less typically qualify for the set-aside probate process. This is the net value. This means that if an estate solely consists of a home valued above this threshold at $150,000, but has an outstanding mortgage of $70,000, the net value of the estate would be considered at $80,000 and would qualify for set-aside probate.
This valuation threshold will apply to any probate assets that are held solely by the decedent. Non-probatee assets are exempt, such as any held in a trust, accounts with payable/transfer-on-death designations, or joint tenancy property.
Who Can Petition for a Set-Aside?
If you are entitled to receive the estate or part of it, you likely will be able to file the petition for set-aside probate. This typically includes a surviving spouse, children, beneficiaries of a valid will, or heirs if no will exists.
Prioritization of Disbursal of Funds in a Set-Aside
The court typically prioritizes the distribution of the estate’s assets in a specific order, making sure that all fees and expenses are paid. The order typically follows:
- Attorneys’ fees related to the estate and petition
- Funeral and medical expenses
- Any owed medicaid reimbursement
- Creditors
- Beneficiaries or heirs
If the deceased person left a surviving spouse or one or more minor children, the court may choose to disregard creditors to set aside the entire estate for their benefit. This protection ensures that vulnerable family members receive estate funds quickly. To be fair to creditors, the court may choose to pay them first if the spouse or minor children have received substantial non-probate payouts, such as from a large life insurance policy.
The Benefits of Simplified Probate
Probate can be costly, time-consuming, and delay family members in getting the assets they need after a loved one’s death. For estates with a net value of $100,000 or less, a set-aside probate offers a significantly faster and less expensive route to settlement.