When most people think about creating an estate plan, they usually focus on what will happen when they die. They typically do not consider what their wishes would be if they were alive but unable to manage their own affairs (in other words, if they are alive but incapacitated). In many cases, failing to plan for incapacity can result in families having to seek court involvement to manage a loved one’s affairs. It does not matter who you are, how old you are, or how much you have—having a proper plan in place to address your incapacity or death is necessary for everyone. Recently, comedian and late-night talk show host Jay Leno had to seek court involvement to handle his and his wife’s estate planning needs due to his wife’s incapacity. Consulting with Reno estate planning lawyers can help you avoid such situations.
A conservator is a court-appointed person who manages the financial affairs for a person who is unable to manage their affairs themselves (also known as the ward). In Nevada, a conservator is known as a Guardian. The conservator is responsible for managing the ward’s money and property and any other financial or legal matters that may arise. They are also required to periodically file information with the court to prove that they are abiding by their duties. To have a conservator appointed, an interested person must petition the court, attend a hearing, and be appointed by a judge. This can be very time-consuming, and there are court and attorney costs that must be paid along the way. Reno estate planning lawyers can help streamline this process and provide necessary guidance.
In January 2024, Jay Leno petitioned the court to be appointed as the conservator of the estate of his wife, Mavis Leno, so that he could have an estate plan prepared on her behalf and for her benefit. Unfortunately, Mrs. Leno has been diagnosed with dementia and has impaired memory. Her impairment has made it impossible for her to create her own estate plan or participate in the couple’s joint planning. According to court documents, Mr. Leno wanted to set up a living trust and other estate planning documents to ensure that his wife would have “managed assets sufficient to provide for her care” if he were to die before her. Right now, Mr. Leno is managing the couple’s finances, but he wanted to prepare for a time when he is no longer able to do so.
On April 9, 2024, the court granted Mr. Leno’s petition. According to the court documents, the judge determined that a conservatorship was necessary and that Mr. Leno was “suitable and qualified” to be appointed as such. During the proceedings, the judge found “clear and convincing evidence that a Conservatorship of the Estate is necessary and appropriate.”
Although there was a favorable outcome in this particular case, it still took several months for Mr. Leno to be appointed by the court. In addition to the initial filings and court appearances, there will likely be ongoing court filing requirements to ensure that Mrs. Leno’s money is being managed appropriately. Had they prepared an estate plan ahead of time, much of this time and hassle would likely have been avoided. Reno estate planning lawyers can assist in preparing these crucial documents ahead of time to prevent such scenarios.
While many people may dismiss the Lenos’ experience as something that applies only to the rich and famous, the truth is that you could find yourself in the same situation (although with a smaller amount of money and property at play) if you are not careful. Let’s use this opportunity to learn from their mistakes.
We can help you and your loved ones regardless of where you find yourself in the estate planning process. Whether you are looking to proactively plan to ensure that your wishes are carried out during all phases of your life, or if you need assistance with a loved one who can no longer manage their own affairs, give us a call. Our team of Reno estate planning lawyers is here to assist you.
When it comes to estate administration, TV shows and movies often take creative liberties, leading to widespread misconceptions. While these portrayals can be entertaining, they rarely reflect the complexities of real-life estate planning and administration. As Reno estate planning lawyers, we at Anderson, Dorn & Rader Ltd. are here to clarify some of the common myths and provide accurate information to help you make informed decisions about your estate.
One of the most common misconceptions perpetuated by TV and movies is the immediate distribution of assets following someone's death. Characters often receive their inheritance instantaneously, with little to no legal proceedings.
In reality, the distribution of assets is far from instantaneous. The estate must go through a series of legal procedures, including probate, which can take several months or even years. During probate, the court oversees the validation of the will, payment of debts and taxes, and distribution of the remaining assets to the beneficiaries. This process ensures that all legal requirements are met, and any disputes are resolved before the assets are distributed.
TV and movies often depict the probate process as a long, drawn-out nightmare filled with endless court battles and legal fees. This portrayal can be misleading and discourages people from engaging in necessary estate planning.
While probate can be complex, it is not always the horror story that entertainment media suggests. With proper estate planning, the process can be streamlined and managed efficiently. Creating a comprehensive estate plan, including a will and possibly a trust, can help minimize the probate process's length and complexity. Working with experienced Reno estate planning lawyers can further ensure a smoother and more manageable probate experience.
Another common misconception is that legal challenges to an estate are rare and easily resolved. In movies, disputes over a will or trust are often quickly settled with a dramatic courtroom revelation.
In reality, legal challenges to an estate can be complex, contentious, and protracted. Disputes over the validity of a will, allegations of undue influence, or conflicts among beneficiaries can lead to lengthy legal battles. These challenges require careful navigation by skilled attorneys to ensure that the deceased's wishes are honored and that the estate is administered fairly. Proper estate planning and clear documentation can help mitigate the risk of such disputes.
TV and movies often depict the resolution of estate matters as happening within a very short timeframe. Characters might resolve all estate issues in a single episode or film, giving the impression that estate administration is a quick process.
In real life, estate administration is a lengthy process that involves multiple steps and can take months or even years to complete. The timeline can vary depending on the estate's complexity, the presence of any disputes, and the efficiency of the probate court. Executors must gather and inventory assets, pay debts and taxes, and distribute the remaining assets to beneficiaries, all while adhering to legal requirements and deadlines.
While TV shows and movies can provide an entertaining glimpse into the world of estate administration, they often fall short of depicting the realities involved. Understanding the true complexities of estate administration is crucial for effective estate planning. By dispelling these common myths and working with knowledgeable Reno estate planning lawyers, you can ensure that your estate is managed according to your wishes and that your beneficiaries are well cared for.
Contact Anderson, Dorn & Rader Ltd. for a consultation to learn how real estate administration works and how you can properly prepare for it. Let us help you navigate the legal landscape to secure your legacy and provide peace of mind for your loved ones.
Generational wealth is an aspiration many families strive to achieve. However, planning for the seamless transfer of wealth across generations can be complex, especially when considering adoption and the use of dynasty trusts. This guide aims to provide clarity on how these tools can be used effectively to build and preserve generational wealth.
Dynasty trusts offer several benefits, including:
Setting up a dynasty trust requires careful legal structuring. This involves:
Adoption can significantly impact estate planning and the transfer of generational wealth. Legally, adopted children have the same rights as biological children in terms of inheritance. This means they can be included as beneficiaries in dynasty trusts and other estate planning instruments.
Adopting children can bring financial benefits beyond the joy of expanding your family. For instance:
To ensure a dynasty trust remains effective, it must be actively managed. This involves:
Life is unpredictable, and estate plans should be flexible enough to adapt to changes. This could involve:
Creating generational wealth through adoption and dynasty trusts requires careful planning and professional guidance. Anderson, Dorn & Rader Ltd. is here to help you navigate this process. Contact us for a personalized consultation to ensure your estate planning goals are effectively met.
There are so many valuable benefits a comprehensive estate plan can provide, especially when it comes to ensuring your estate is passed on to your loved ones upon your death. A comprehensive estate plan may be even more important for gay couples. Marriage makes estate planning easier, as there are so many automatic benefits provided for married couples under the law. For example, if a married couple has not done any estate planning, at least one half of that spouse’s estate will pass automatically to the surviving spouse upon death under Nevada law. The landmark United States Supreme Court case Obergefell v. Hodges recently held that the fundamental right to marry is guaranteed to same-sex couples, yet not every same-sex couple wants to get married. All same-sex couples should have the same ability to secure the future of their loved ones, and estate planning is the way to do just that.
Estate planning issues facing gay couples
The way in which an unmarried same-sex couple legally owns property can have a significant impact on the transfer of an estate upon death. Owning property in joint tenancy may ensure property will be transferred to the surviving partner, however, this does not protect each partner's respective interest in transferring that property after both have passed away. Without a comprehensive estate plan, state and federal laws determine who will receive the assets from an estate, how estate taxes are calculated, and when those taxes will be imposed, all of which may conflict with the couple's wishes. Furthermore, unmarried same-sex couples have challenges in asserting certain rights that are afforded married couples. There are laws that determine who can make health care decisions for someone else in the case of incapacity and most, if not all, of these laws apply solely to legally married couples.
How gay couples can deal with these inheritance issues
Now that same-sex marriage must be recognized by all 50 states, many of the estate planning obstacles that gay couples were accustomed to facing have been eliminated. However, not all couples choose to get married. An experienced estate planning attorney who is familiar with same-sex legal issues can discuss all of the estate planning tools at your disposal and customize your estate plan to meet all of the needs in your relationship. Whether you choose to create a will or trust, you can address all of your inheritance issues head on. Through comprehensive estate planning, a same-sex couple can plan the transfer of their assets to ensure that both partners are cared for, and that each partner's loved ones can receive their inheritance after death. Additionally, documents can be prepared to safeguard each partner's right to make health care decisions in the event of incapacity.
Options to include in your estate plan
Wills and trusts are typically the foundation of an estate plan, because they can provide specific instructions regarding the distribution of your assets after your death. In your will or trust, you can designate who you want to handle your affairs upon death, as well as who will inherit your assets. If you do not have a will, trust, or any other estate planning tool, the probate court will determine who receives your property based upon the state law. When your partner is not a legal spouse, a probate court under Nevada law will not provide any inheritance to that partner without an estate plan.
Domestic partnership agreements can be a convenient way to establish a gay couple’s expectations regarding their relationship. There are other estate planning options that should be included in your comprehensive estate plan. Some of these options include a General Durable Power of Attorney, a Power of Attorney for Health Care Decisions, a HIPAA Authorization, a Property Agreement, and an Affidavit Authorizing Order of Burial or Cremation. These documents allow you to authorize your partner to make any necessary decisions for you, including funeral arrangements, after your death.
If you have questions regarding LGBTQ estate planning needs, or any other estate planning needs, please contact Anderson, Dorn & Rader, Ltd., either online or by calling us at (775) 823-9455.
Often, members of the gay community are concerned about privacy when it comes to how they choose to leave their estate to, after death. Indeed, privacy is a common concern for most clients. Since there are so many options in estate planning, you have the ability to customize your plan in a way that keeps your assets, as well as your plan for distributing them, as private as you wish. A major benefit of creating an estate plan, as opposed to relying simply on a will, is that the distribution of an estate can be kept from nosey neighbors and prying eyes.
Probate proceedings are always public
A major drawback of relying only on a will to handle the distribution of your estate is the fact that wills must be probated. This means that a will has to be filed with the local probate court. The only way the terms of a will can be enforced, or put into action, is through the court system. As a result, the specific details of your will become public record, including the identity of your beneficiaries, the amount of assets you have, and who you decide to give them to. Basically, once your will is filed in court, anyone can go to the probate court and ask to see it, and even obtain copies of your probate documents.
An estate plan using revocable living trusts provides privacy
There are many benefits to using revocable living trusts as part of your estate plan. One important benefit is the amount of privacy that this estate planning tool can provide. For instance, a revocable living trust is essentially a private contract between you and your chosen trustee. Because it is a living trust, you retain authority over the trust during your lifetime, including the power to make all decisions regarding the investment of your assets and the use of income earned by the trust. If you become mentally incapacitated, the trustee can then take over management of the trust. Of course, upon your death, your trustee will become the decision maker, based on the terms of your trust. Your trustee is always required to follow your instructions and distribute your assets as you indicate in the trust agreement.
Why does a revocable trust stay private?
The main difference between a will and a living trust is the fact that a trust is not required to be filed in court. Your instructions are followed immediately upon your death or incapacity, without your estate going through the probate process. It is the probate process that makes your estate open to the public. Therefore, only your trustee has access to its terms.
If you have questions regarding privacy in estate planning, please contact Anderson, Dorn & Rader, Ltd., either online or by calling us at (775) 823-9455.
Now,at the beginning of a new year, it is worth reviewing the status of same-sex marriage in our country.
Topics covered in this whitepaper include:
Click here to read the whole article or download the PDF.
Marriage is a sacred institution, not only in the public eye, but also in the courts. It represents a legal union that guarantees specific federal rights and privileges. Learn more about same-sex marriage in Nevada in this presentation.
Same-sex couples need to create an estate plan that sets out their intentions in these specific legal areas, in order to make their choices legally binding.
Topics covered in this whitepaper include:
Click here to read the whole article or download the PDF.
Most married couples in our country take for granted their assumed right to visit their spouses in the hospital and to make medical decisions for their spouses, when necessary. The same rights are not available for same-sex couples. As of 2014, there are only 32 states and the District of Columbia, which have legalized gay marriage. Nevada is one of them. However, there are still some issues when it comes to unmarried gay couples making medical decisions in Nevada.
The case of Brittney Leon and Terri-Ann Simonelli
In 2012, Brittney Leon and Terri-Ann Simonelli were in a domestic partnership, which under the laws of Nevada, grants gay couples some of the same rights as married couples. Leon was admitted to Spring Valley Hospital, due to pregnancy complications. The hospital refused to allow her partner, Simonelli, to visit her without a power of attorney.
Regrettably, Leon lost her baby, and Simonelli could not be with her and had to rely on updates from the hospital staff. Even while Leon’s insurance, was provided through Simonelli’s employer, the HIPAA regulations kept the couple apart during the ordeal. According to the hospital, they were enforcing a policy based on Nevada law that required couples who are not married to have power of attorney before medical decisions could be made for each other.
Estate planning issues facing same-sex couples
The law is always changing, and even more so with regards to gay rights. In fact, there was a presidential order entered several years ago, requiring the Department of Health and Human Services to establish a rule preventing hospitals from denying visitation to same-sex partners. However, that executive order did nothing to help Simonelli and Leon, because the hospital was not a federal facility and doing so would violate Nevada statutes, putting the hospital and doctors at legal risk.
There is no doubt that the LGBTQ community will continue to face legal challenges, as the views of same-sex relationships continue to change and evolve in each state and the country. Leon and Simonelli decided not to file a legal complaint against the hospital. However, their situation is an important reminder of the issues still facing the LBGT community. Clearly, gay couples do not have all of the same rights under the state’s domestic partnership law. With gay marriage now legal, there is little doubt that a married person can make medical decisions for a spouse. Even so, it is a good idea to have appropriate medical directives in place.
Establishing the power to make medical decisions for your partner
State and federal laws dictate who can be given the power to make health care decisions for someone else, if they become incapacitated. However, most of these laws apply to, and often favor, couples who are legally married. There are several estate planning tools that can be used to give the authority to make medical decisions, on behalf of a same-sex partner, without recognition as a legally married couple. These tools are generally called advanced directives.
A durable power of attorney for health care is a document that gives someone you choose the power to make decisions concerning your medical care and treatment, in the event you are no longer able to do so. The authority you choose to give to your partner can include the power to consent to or withdraw from any type of medical treatment, even when death may result. A well-drafted durable power of attorney will prevent any hospital or health care provider from denying your partner the ability to make decisions for you. Instead, your wishes are written in a legal document, which is always the best evidence of your intent.
If you have questions regarding health care directives, or any other LGBTQ estate planning needs, please contact Anderson, Dorn & Rader, Ltd., either online or by calling us at (775) 823-9455.
To learn more, please download our free LGBTQ estate planning in Nevada report here.
