If you or a loved one passes away without a valid Last Will and Testament, intestacy laws (sometimes called succession laws) will be used to settle your estate. These laws are unique to each state and determine who inherits property when no Will is available to make the decision.
If you do not create a Last Will and Testament or your Will is deemed inadmissible by a court of law, all property in your state of residence and any real property located in other states will be subject to a court supervised probate proceeding in each state. The court will apply the laws of intestacy relative to its state of jurisdiction.
Intestacy laws not only establish who inherits, they also decide how much each person receives. When laws from multiple states affect an estate, different heirs may inherit the property in each location. In some cases, heirs you would have liked to include may receive nothing or heirs you would not have liked to include will receive an inheritance.
Whether you decease with a Will or intestate probate proceedings will be required. The court will appoint a personal representative or executor or executrix to administer your estate. The personal representative will work with an attorney to determine what assets are subject to probate and who the beneficiaries or heirs will be in each state where a probate may be required. This can be a lengthy process. During this time, family members may not agree on decisions made by the personal representative, which can slow the process down further.
Probate is a costly procedure. Costs include court costs, attorney fees, personal representative fees, publication fees, appraisal fees, tax preparation fees and real estate agent fees to name a few.
If you live in Nevada, get in touch with Anderson, Dorn & Rader, Ltd. to learn about Nevada intestate succession. To avoid the concerns that are created by intestacy laws, it is recommended that you work with qualified estate planning attorneys to create a Last Will and Testament. To avoid the costs and inconveniences of probate altogether, ask a your attorney about the benefits of a trust.
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Probate is a legal process wherein a court oversees the distribution of a deceased person's estate to the heirs or beneficiaries of the estate after the payment of all debts, obligations and funeral expenses. A Nevada probate proceeding helps fulfill the wishes of the deceased as specified in a will. In case there is no will, the distribution of the deceased’s estate is made according to the applicable state laws.
The time required to complete the probate process depends on several factors including:
With the above factors in mind, the probate process may be completed in nine to twelve months or may take years. The probate process can be delayed if the validity of the will is contested, if there are disputes relating to the settlement of the debt of the deceased, or if there is a delay in finding beneficiaries. Tax issues can also delay a probate process.
The cost of the Nevada probate process may be set by the applicable state laws or by practice and therefore differs from state to state and case to case. The general costs included are:
Although some of these charges are fixed per state law, legal and accounting fees can be negotiated. However, in case of any type of disputes or litigation, the probate process may continue for months, if not years, and involve a number of additional costs.
To learn more about probate and Nevada probate laws, speak with a probate attorney at Anderson, Dorn & Rader. Our Reno law firm also provides free reports that further explain a probate.
With a Roth IRA, your contributions (and the interest they earn) can be withdrawn tax-free. While this tax benefit may be the most significant aspect it offers a few more perks as well.
For starters, the Roth IRA is a contact that directs the payment of the balance of the account at your death to your designated beneficiary. So any funds that remain in the account when you die can be passed to your designated beneficiary without probate. But unlike other retirement plans, it doesn’t require you to begin withdrawing money at age 70 ½.
With a traditional IRA, for example, you must make minimum withdrawals beginning at age 70 ½. This amount will vary depending upon your age and the age of your designated beneficiary. The reason for this requirement is to ensure that you – not your beneficiary – receives the bulk of the funds in your IRA before you pass on.
A Roth IRA, however, doesn’t require you to withdraw any funds. So, unless you need the money, you can just leave it in account where it will continue to grow. Upon your death, all the funds will pass to your beneficiary, income tax-free.
To learn about more ways to avoid probate, contact the Reno, NV probate lawyers at Anderson, Dorn & Rader, Ltd. today!
