Many are surprised to discover that Nevada does not have inheritance taxes. However, it charged estate taxes up until 2004, before it was repealed on New Year’s Day.
If you’re confused about estate and inheritance taxes, you’re not the only one. Estate taxes are immediately charged after someone passes away, while inheritance taxes are received from the deceased’s children.
Therefore, Nevada is a good place to reside if you wish to avoid paying too much in taxes and want to leave your assets to your children.
Let’s explore a guide to Nevada’s inheritance laws.
What Happens if You Prepare a Will Before You Die in Nevada?
One of the best things you can do to ensure your assets get passed down is to leave a will. You can add your kin or people you are close to in your will, which serves as a binding contract of sorts. Rest assured that under Nevada laws, your property will be received by them after you pass away.
If you do not prepare a will before you die, your estate will be passed on according to Nevada’s inheritance laws. The two terms you should familiarize yourself with are testacy and dying intestate. These refer to preparing a will and not preparing one, respectively.
Nevada laws give certain conditions for having a valid will. For example, you must be of legal age (18 in this case) and should not be intoxicated when preparing it. Your will must also be signed by two witnesses, ensuring someone you trust was present and has agreed to your statement. Under Nevada laws, you can choose to submit your will as a handwritten piece or have it electronically printed.
Your assets may be distributed to your spouse or children in most cases. However, your assets must be valued at 100,000 USD or more to avoid skipping probate for your spouse. It must also be over 25,000 USD if someone is making a claim on your estate. If you prepare diligently, you can avoid the probate process altogether. This is possible by setting up a trust that helps your children receive what they deserve.
What Happens if You Don’t Prepare a Will Before You Die in Nevada?
As mentioned above, if you don’t prepare a will before you die in Nevada, your property will go through Nevada’s inheritance or succession laws. However, if you’ve already named someone in your will, their assets will be exempted from these laws.
Some examples of assets exempted from inheritance laws include retirement accounts, co-owned properties, trust property, etc.
In the worst-case scenario, your lack of will result in a long and drawn-out probate, whose results may or may not be controversial. It is also quite expensive, meaning you should carefully prepare a will several years in advance. Not doing so could result in major hassle for your spouse, children, and others claiming a stake in your estate.
Who Gets What Under Nevada’s Inheritance Laws?
In most cases, your estate will be distributed to your spouse and children. However, some complications can arise since spouses have a claim to the property despite not having their names on the property documents.
If you have community and separate property, your spouse will receive all of the former and half of the latter. In contrast, your children will only receive half of your separate property. However, these rules change slightly depending on the number of children you have. For example, if you have two children, your surviving spouse will receive one-third of your separate property.
Your children will only receive a portion of your separate property if you do not prepare a will. If you only have one child, they will be entitled to half of the separate property. With two children, they will have two-thirds of the separate property evenly distributed among themselves. However, the situation can be complex if you consider other factors, such as unmarried couples, half and whole relatives, etc.
Seek Bourassa Law Group for Expert Advice on Nevada’s Inheritance Laws
It can be tricky to deal with Nevada’s inheritance laws, meaning you should work with an experienced attorney to handle your will before you pass away. Finding a trustworthy professional will help make your spouse’s and children’s lives easier.
Bourassa Law Group has a team of dedicated attorneys specializing in handling your estate distribution to your spouse, kin, or chosen party. You can reach out to them to book a free consultation at (800)870-8910 today.
1-800-870-8910