Probate is the legal process that involves proving a Decedent’s will, identifying and valuing their assets, settling outstanding liabilities, and disbursing assets to the proper heirs. The process of probate can be lengthy and costly, particularly if one or more beneficiaries to the Decedent’s estate contest any aspect of these proceedings.
Avoiding probate in Reno can be an option in many cases if your assets are structured in the right way. However, planning ahead is essential to ensure assets pass to your beneficiaries without probate. An experienced probate law attorney can carefully evaluate your assets and liabilities, as well as the potential legal structures that can be used to minimize or eliminate future probate proceedings.
Whether an asset is subject to probate generally depends on how it is owned and whether it has a valid pay-on-death beneficiary designation. Probate assets are typically those owned solely in the Decedent’s name without any other method for transferring ownership of the asset at death.
Non-probate assets are owned by the Decedent, but pass directly to another person outside of the probate process in Reno. These may include 401(k)s, IRAs, and other retirement accounts with designated beneficiaries, life insurance proceeds, jointly owned property, and bank or brokerage accounts with beneficiary designations. When the owner dies, these assets can be transferred to the proper beneficiary by providing the Decedent’s death certificate. If you are planning for the future, you can spare your heirs considerable stress by making sure your financial accounts have designated beneficiaries so that they avoid probate in Reno.
Estates that are valued up to $25,000 or up to $100,000 (only if the spouse is filing) can be excluded from probate by claiming the Decedent’s assets with a small estate affidavit. However, the estate cannot include real property such as a home or land.
Estates that are valued at $100,000 or less can also be resolved through a more simplified probate process upon a judge’s order called a Set Aside. Apart from the exceptions noted here, all other assets are subject to probate including real property, personal property, bank accounts, and business interests.
There are numerous legal options to avoid probate in Reno for assets that would otherwise be subject to this protracted and expensive process. In fact, there are many responsible strategies that can keep your assets out of probate completely.
Creating joint ownership with the right to survival for various forms of property, including real estate and other titled property, can ensure that your ownership interests automatically pass to the remaining owner when you die. It is important to ensure that any payable-on-death or transfer-on-death designations are accurate and up to date.
These designations are designed to ensure that assets held in their respective accounts transfer automatically to your beneficiary without going through probate. However, if your beneficiary were to pass away before you, that account’s contents would become subject to probate proceedings unless you have designated a new or alternative beneficiary.
You can also place property in a revocable living trust as another way to avoid probate. A trust is a legal entity that holds the title to the assets it contains. Trusts can contain numerous types of assets including investment accounts, stocks, bonds, artwork, real estate, and other personal belongings. Crucially, trusts are exempt from probate.
The trustee is usually the person who created the trust and remains in that role until incapacitation or death. This makes it important to designate a successor trustee to act in your place in the future, such as to distribute assets to your beneficiaries when you pass away.
An attorney with extensive experience helping clients prepare for their family’s future can help you construct an estate plan that maximizes tax efficiency while avoiding probate in Reno. If your assets are structured strategically, it may be possible to ensure that your beneficiaries avoid probate altogether when you pass away.
Reducing or removing your estate’s future exposure to probate can save time and money, reduce the emotional anguish your loved ones will be facing during their grief, and help ensure that assets are distributed faster. If you have questions about avoiding probate, the best course of action is to speak with an estate planning attorney who has extensive legal knowledge in these matters. Give us a call today to receive your free case consultation on how to avoid probate.
