Did you know that if you inherit money not worth more than $12 million, it most likely won’t be subject to federal estate taxes? When your loved one passes away, understanding inheritance laws can help clarify what happens to their estate and what your obligations are as heir.
In Nevada, estate laws dictate how a deceased individual's assets and property are distributed after passing. The Nevada surviving spouse rights can vary based on several factors, including whether the deceased had a will and the nature of the property involved.
Let’s look into the complications of determining what a surviving spouse gets in Nevada.
Nevada's Community Property Laws
When inheriting in the state of Nevada, understanding Nevada's community property laws is necessary for handling the distribution of assets. Just like creating a trust in California, your heirs can sidestep probate altogether if you have established a trust for many of your assets. Trusts play a big role in your estate planning strategy.
In Nevada, community property laws dictate that any property acquired during the marriage is considered jointly owned by both spouses. This means that upon the death of one spouse, the surviving spouse automatically inherits their share of the community property.
Separate property, which includes assets acquired before the marriage or gifts received individually, isn't subject to the same rules.
If you find yourself in a situation where you're inheriting in Nevada, you must distinguish between community property and separate property to have a smooth distribution of assets.
Understanding how these laws apply to your circumstances can help you make informed decisions regarding estate planning and asset distribution. Consulting with a legal professional who understands Nevada's community property laws can provide guidance to handle this process effectively.
Intestate Succession Rules in Nevada
In Nevada, if a person dies without a will, the distribution of their assets will follow specific guidelines outlined in the state's intestacy laws.
When a Nevada resident passes away without a will and is survived by a spouse but no descendants, the entire estate will typically pass to the surviving spouse. If the decedent is survived by a spouse and descendants, the spouse will inherit either one-third or one-half of the estate, depending on the number of descendants.
If there's no surviving spouse, the estate will pass to the decedent's descendants. If there are no surviving descendants, the estate will go to the decedent's parents, then to siblings, and further down the line of intestate succession as defined by Nevada law.
You must understand these rules to be prepared for how assets will be distributed if you or a loved one were to pass away without a will in Nevada.
Spousal Elective Share in Nevada
To ensure that a surviving spouse receives a fair share of the deceased spouse's estate, Nevada law provides for a Spousal Elective Share. This means that even if the deceased spouse attempted to disinherit the surviving spouse in their will, the surviving spouse has the option to claim a portion of the estate.
In Nevada, the surviving spouse can choose to receive one-third of the augmented estate, which includes the assets that would pass through probate and certain non-probate assets. The augmented estate calculation considers various factors, such as property transfers made by the deceased spouse before death.
Disinheritance and Exceptions
If a deceased spouse attempted to disinherit the surviving spouse in their will, Nevada law allows for certain exceptions that may impact the ability to fully exclude the surviving spouse from the estate.
In Nevada, even if a will explicitly states that the surviving spouse shouldn't inherit anything, the surviving spouse can still claim an elective share of the deceased spouse's estate. This provision will protect surviving spouses from being completely disinherited and ensure they receive a fair portion of the marital assets.
There are specific time limits within which the surviving spouse must assert their right to the elective share so you must seek legal advice immediately if you believe you have been wrongly disinherited in Nevada.
Planning Ahead: Estate Documents for Spouses
Consider creating comprehensive estate documents together as spouses to ensure your assets are distributed according to your wishes in Nevada.
Start by drafting a will to specify how you want your property distributed upon your passing. In Nevada, a will allows you to choose your beneficiaries, designate guardians for minor children, and name an executor to manage your estate.
Consider establishing a trust to protect your assets and streamline the distribution process. A trust can also provide privacy since it avoids the public probate process.
Don't forget to create powers of attorney for healthcare and finances. These documents allow your spouse to make important decisions on your behalf if you become incapacitated.
Review and update your beneficiary designations on accounts such as life insurance policies and retirement plans to ensure they align with your current wishes.
Conclusion
In Nevada, a surviving spouse may not necessarily inherit everything if their spouse passes away. Spouses need to understand these laws and consider planning ahead with estate documents to make sure their wishes are carried out.
Consulting with an estate planning attorney can help handle these complications and guarantee that both spouses are looked after in the event of one's passing.
