What Triggers Probate in Nevada?

Knowing what triggers probate in Nevada will help you to avoid the time consuming and expensive legal process known as probate. Whether a petition to open a probate estate is required to be filed depends upon how the decedent’s assets are titled and the value of the probatable assets.

Generally, probate in Nevada is triggered when assets are owned by the decedent in their individual name with no beneficiary listed and the value of the estate is over $100,000.

Below explains in more detail the four things to know about what triggers probate, specifically (1) asset ownership, (2) how real estate specifically is owned, (3) probate estate value thresholds, and (4) the effect of not having an estate plan.

Asset Ownership

If the decedent owned assets in his or her name individually, probate may be required.

Some assets, such as life insurance or retirement accounts, even though owned by the person individually, typically have a beneficiary designated. Such assets pass directly to the named beneficiary without probate.

If the named beneficiary has predeceased the person who died, and there is no secondary beneficiary named, the account will become part of the probate administration. 

Assets owned jointly can avoid probate administration on the first joint owner’s death, if held with rights of survivorship. 

Real Estate Ownership

How real property in Nevada is owned often serves as a key factor in triggering probate proceedings. If you own property in the Silver State, it’s crucial to understand how this asset can impact your estate’s legal process after your passing.

As mentioned above, if you hold property solely in your name, it’ll likely require probate to transfer ownership to your heirs or beneficiaries. Nevada probate courts must oversee the transfer of real estate located in Nevada.

So, even if the decedent lived in another state upon death, if he or she owned real estate in Nevada, not only may probate be required in the state where they lived, the Nevada property would be subject to probate in Nevada. This is referred to as an ancillary probate. 

Spouses commonly own real property as joint tenants or as community property with rights of survivorship. Upon the first spouse’s death the property will pass automatically to the surviving spouse. But, probate will be required at the second spouse’s death if nothing is done to avoid probate.

Understanding these nuances can help you make informed decisions about your estate planning, potentially saving your loved ones time and expenses associated with probate proceedings.

Estate Value Thresholds

Understanding Nevada’s estate value thresholds is crucial when determining whether an estate will trigger probate proceedings. In Nevada, the value of an estate plays a significant role in dictating the probate process you’ll need to follow.

If you’re dealing with a small estate valued at $25,000 or less, you may be eligible to use a small estate affidavit. This will save you time and resources. The small estate This streamlined approach is designed to help beneficiaries of modest estates settle affairs more efficiently.

The small estate affidavit can also be used for vehicles, regardless of value, assuming that other probatable assets do not exceed $25,000.

However, if the estate you’re handling exceeds the $25,000 threshold, you’ll need to navigate anotherprobate process.

If the estate is between $25,000 and $100,000, a petition is filed with the court in Nevada to set aside estate assets to the beneficiaries. This only requires one petition and one court hearing.

Larger estates, over $100,000, typically require more extensive legal procedures and court involvement. As the estate value increases, so does the complexity of the probate proceedings.

For estate between $100,000 and $300,000, the personal representative may petition the court for a summary administration.

For estates over $300,000, a formal probate, also referred to as a full probate, is required. Under a full probate, creditors are given 90 days to file a claim against the estate instead of only 60 days under a summary administration.

It’s essential to accurately assess the estate’s value to determine which path you’ll need to take. Whether you’re an executor or a beneficiary, knowing where the estate falls in relation to these value thresholds will guide your next steps and help you manage expectations.

Absence of Estate Planning

A lack of estate planning is one of the most common triggers for probate in Nevada. When you fail to create a valid estate plan, you’re essentially leaving the distribution of your assets to the state’s laws of intestacy. 

This means that without a properly funded trust in place, the probate court will oversee the distribution of the assets of the estate.

Nevada intestacy laws dictate how your assets will be distributed when you haven’t left any estate planning documents. The court will appoint an administrator to manage your estate, which may not align with your wishes or your family’s expectations.

To avoid triggering probate, it’s crucial to establish a comprehensive estate plan. This should include a living trust that outlines how you want your trust estate property distributed.

By taking these steps, you can help your loved ones avoid the time-consuming and potentially costly probate procedures, ensuring a smoother transfer of your assets after your passing.

Contested Wills

While a will contest does not in and of itself trigger probate, if there needs to be a probate petition to admit a will, if a beneficiary or disgruntled heir disagrees with the will, he or she may intervene with the probate case to contest the will.

Contests typically occurs when there are disagreements over inheritances or when certain individuals believe they should have been named as beneficiaries but weren’t.

Challenges to a will’s validity often revolve around two key issues: the testator’s mental capacity and potential undue influence. I’ve written this post to learn more about will contests,.

If you’re involved in a situation where a will is being contested, you should be prepared for potential delays and increased complexity in the probate process. It’s advisable to seek a good probate attorney or law firm to navigate these challenges effectively and protect your interests.

Frequently Asked Questions

How Long Does Probate Typically Take in Nevada?

You’ll typically face a probate timeline of four to six months in Nevada. However, at the time of writing this article, 2024, in Clark County, that time frame has increased to eight to twelve months because of the backlog of cases.

Of course, challenges like beneficiary disputes or creditor claims can lead to probate court delays. Estate litigation can take years.

Can a Living Trust Help Avoid Probate in Nevada?

Yes, a living trust can help you avoid probate in Nevada. It’s one of the most effective probate avoidance strategies.

Furthermore, under Nevada law, having a living trust and pourover will help avoid the need to petition for probate since a set aside procedure is available instead. 

What Are the Costs Associated With Probate in Nevada?

You’ll face various probate expenses in Nevada. Legal fees often make up the largest portion. You’ll also encounter court costs, executor compensation, appraisal fees, and publication expenses. These can add up quickly, potentially impacting the estate’s value. Read this article to learn more about Nevada probate costs.

Are There Any Assets Exempt From Probate in Nevada?

You’ll find several probate exemptions under Nevada inheritance laws. Assets with designated beneficiaries, jointly owned property, revocable living trusts, POD/TOD accounts, and vehicles with TOD registrations can all bypass probate, simplifying the transfer process for you. Even real estate subject to a transfer on death deed.

Can Out-Of-State Executors Handle Probate for Nevada Estates?

Yes, you can handle probate for Nevada estates as an out-of-state executor. You’ll need to meet legal requirements, such as posting a bond or appointing a resident agent in certain situations. Out-of-state representation is possible if you comply with Nevada’s probate code.

What Statutes Govern Probate in Nevada?

Probate matters are governed by Title 12 of the Nevada Revised Statutes beginning with Chapter 132.

Conclusion

You’ve learned about the key triggers for probate in Nevada. Remember, it’s not just about estate value; but also how assets are titled and the absence of proper planning can also lead to probate.

If you’re facing a contested will or complex asset distribution, you’ll likely need to go through probate. To avoid this process, consider creating a comprehensive estate plan.

It’s always best to be prepared and protect your assets for your loved ones.