What You Need to Know About Estate Planning in Nevada

What is an estate plan?

An estate plan is a set of documents that protects you and your family if you become incapacitated or die. Typically, our estate plans include a trust, a will, a power of attorney for financial matters, a power of attorney for healthcare matters, a general assignment, a certificate of trust, and an Advanced Directive — sometimes called a living will.

Why do I need a trust if I have a will? Isn’t a will enough?

The point of estate planning is to help you and your family transfer property with the most control, the least expense, and the fastest speed. A will can identify where you want your property to go, but it cannot prevent your estate from going through probate — the court process by which a deceased person’s property is distributed to the entitled parties. Holding property in a trust allows you to avoid probate entirely.

Do I have to place my home in a trust?

If you own your home, it is a very good idea to place it in a trust. There are limited options for passing a home outside of probate, and a trust is by far the most convenient, least expensive, and fastest one.

What happens if I fail to place my home in a trust?

If your home is not in a trust when you pass away, your family — or someone else — will have to initiate a probate proceeding to transfer the property. In some circumstances, this can force the sale of your home. In all cases, it is expensive and time-consuming. Placing your home in a trust gives you control over how it is disposed of and allows your family to complete the process in a very short period of time and at negligible expense.

I still have a mortgage. Can I put my home in a trust? Will it affect my loan?

Yes, you can place a mortgaged home in a trust, and doing so will not affect your mortgage. Lenders are generally prohibited from altering the terms of your loan based on a transfer of property into a trust.

I’m not sure I’ll live in this house forever. Should I still put it in a trust?

Yes. Once your trust is established, properties can be moved in or out of it as your circumstances change. A home held in a trust can be sold just like any other home. When you purchase a new home, you can request that the title company record it directly into your existing trust. Our office is also happy to assist in ensuring that any real estate you acquire is properly placed in the trust.

Why do I need a will if I have a trust?

The wills we prepare to accompany our trusts are designed to capture any property that you intended to place in the trust but didn’t get around to transferring. If that happens, Nevada law allows a streamlined, short-form probate process — significantly faster and less expensive than full probate — to sweep those assets into the trust.

Who should I select as the trustee of my trust?

Selecting your trustee is one of the most important decisions you will make in creating an estate plan. Your trustee should be someone with good financial management skills, scrupulous honesty, and strong communication skills — someone you trust completely and who you know will take the proper steps when the time comes. We are always available to assist trustees who are administering trusts.

Who should I choose as the beneficiaries of my trust?

That is entirely up to you. Most people choose close family members — children, siblings, grandchildren — but some people designate charities or other organizations. We are happy to discuss the options with you and help structure the trust to reflect your wishes.

Can I prevent a specific relative from inheriting from me?

Yes. In fact, a trust is one of the safest and most secure ways to ensure that you control who inherits from you. Under Nevada’s intestacy laws, if you die without a will or a trust, state law determines who your heirs are. It is not uncommon for an estranged family member to inherit simply by operation of law, while family members who cared for you during a final illness — or who maintained a close and loving relationship — may receive nothing. By placing your property in a trust, you eliminate that risk entirely.

How much does it cost to prepare a trust?

The cost varies depending on the complexity of the trust, the nature of the assets, and what is required. Our firm strives to be affordable and approachable. Most of our trusts are prepared for everyday people who don’t have significant assets beyond their home and reasonable retirement savings. We can usually provide you a quote over the phone and can accept payment over time. We want to provide our clients the protection of a well-drafted trust without pricing them out of it.