Probate is a court process meant to settle the estate of a deceased person. The representative of the estate must find the assets, pay outstanding debts, and distribute the remaining assets to the heirs and beneficiaries. Depending on how big and complex the estate is, the probate process can be long and costly. Your loved ones may meet with a Probate attorney in Nevada, attend hearings in court, and arrange for asset distribution. Thankfully, there are several ways to avoid the probate process in Nevada. Proper handling and titling of assets is key to avoiding probate, and your loved ones may not need to appear in court to get their inheritance.
Reasons to Avoid Probate
Probate can be an important process. It offers heirs uncertainties that all assets in an estate are accounted for and debts are paid. Court supervision offers accountability and guarantees property asset inventory and distribution. This can be quite essential if the owner of the estate passes away without a will.
However, sometimes, avoiding probate has some benefits. Beneficiaries do not have to seek approval from the court to transfer assets or run a business. Also, they can avoid the expense of probate. In addition, avoiding probate offers your loved ones some privacy. Probate filings tend to be public records, which means that anyone can attend the court proceedings.
Assets that Don’t Go Through Probate
Assets such as the following avoid probate:
- Trust assets. Your loved ones avoid the probate process if you place some assets in a living trust. During your lifetime, you have access to these assets. This means you act as both the trustee and beneficiary while you are still alive. The trust declaration should include the named successor trustee who will administer the trust following your death. Your heirs will be the successor beneficiaries. When you pass away, the successor trustee directs the asset distribution based on your wishes as mentioned in the declaration. The assets in a trust don’t go through the probate process since the trustee holds them.
- Life Insurance benefits. Life insurance policies are contracts between you and your insurance provider. Since the contracts specify who will get the benefits, they don’t go through the probate process.
- Retirement plans. 401(k) and IRAs pass directly to your designated beneficiaries. As with life insurance policies, the parties involved agree upon payments in advance, and assets pass directly to designated beneficiaries.
- Jointly owned assets. These are assets jointly owned by at least two individuals. For instance, married couples usually hold joint assets like motor vehicles, jointly owned real estate, and bank accounts. Such assets don’t pass through the probate court. In Nevada, Community Property with Right of Survivorship is recognized. You need to be quite specific to include the whole phrase.
- Transfer on death or Payable on death designation. This includes bank accounts, bonds, stocks, and brokerage accounts. After your death, the assets are given to your designated beneficiaries.
Is Probate Still Necessary if There is a Will?
Even if you have a will, probate can still occur. Even if the will names an executor and beneficiaries of the estate, assets owned by the deceased person should still pass through probate before title transfers can happen.
If you die, your will should be admitted to probate. The court will use it as a roadmap as they supervise the asset distribution.
Importance of Working with a Probate Attorney
Probate can be a complex process, particularly while you are grieving. An experienced probate lawyer offers invaluable support by:
- Giving expertise. A probate lawyer understands the complexities of probate law and can efficiently navigate the legal system.
- Simplifying the process. An attorney can deal with paperwork, file documents in court, communicate with creditors and heirs, and relieve stress from family members and the executor.
- Resolving disputes. A lawyer can mediate any conflicts that can arise between heirs and the executor.
