Nevada is one of the states where if you own property in Nevada, you must go through probate in Nevada. There are a few exceptions to this rule however.
If the property is held by a trust. If the property passes outside of probate by using a trust, you need not go through probate in Nevada. A trust is a legal entity which can own property on your behalf. Because of this ability, even when you pass away, the property remains in the ownership of the trust. Thus probate is avoided.
In Joint Tenancy. Joint tenancy is when a property is owned by more than one person, and, upon death, it passes to the survivor. This is fairly common. For example, if you own a house with your spouse, when one of you passes away, the other will become the full owner of the house. At that time, there’s no need to put the home through probate since ownership is clear and automatic.
A transfer-on-death deed. Quite uncommon, a transfer-on-death deed, sometimes called a “beneficiary deed” simply transfers ownership of a property to another entity at the time of death. Only a handful of states allow transfer-on-death deeds, and Nevada is one of them. The execution of this kind of deed has no tax consequences. Many people who wish to avoid the expense of creating an estate plan will attempt to create a transfer-on-death deed, but without consulting a lawyer. This can lead to legal mistakes which can result in involving the courts and going through probate anyway.
When do you have to probate in Nevada?
If you live elsewhere but own property in Nevada.
If you live outside the state, but own property located in Nevada, that property must be probated in Nevada unless it is held in a joint account or in a pay-on-death account. Because other states may require that all property be probated in the state of residency, this can mean that some of your property may be probated more than once.
If you live in Nevada, but own property elsewhere.
If you live in Nevada, the state requires that you probate all of your property, including that which is held outside of the state. Again, typical probate avoidance methods such as good estate planning or other methods we mentioned above may mean you don’t have to probate all your property.
If you have questions about probate in Nevada, call us today.