Living trusts have been around for a long time, but seldom do people fully understand the concept when it comes to estate planning.  When considering the necessity of a living trust, I begin the conversation by asking my clients if they own real property, and how they feel about privacy.

In Nevada, a decedent’s real property distributed under a will must pass through probate.   Real property includes your home or vacant land held in your name.  Probate begins when the court appoints a Personal Representative and thereafter supervises distribution of the assets belonging to a person who has died.

However, probate can be avoided if a person creates a living trust and transfers all of their property (both real and personal) into the trust before they pass away.  The owner and maker of the living trust is called the Grantor, and that person maintains complete control over the assets of their trust during their lifetime.  A Grantor may amend or revoke their living trust.

When a person passes away, Nevada law requires the Personal Representative to “lodge” the original will and death certificate with the district court.  At that time, the will becomes available to the public.  Unlike a will, a living trust is not required to be filed with the court at Grantor’s death and its terms remain private.

If all the Grantor’s assets have been property transferred into the living trust, probate is neither necessary nor required. However, the person who serves as Successor Trustee must administer the terms of the trust and carry out the express wishes of the Grantor.   A Successor Trustee has similar duties and responsibilities of a person appointed as a Personal Representative for the will but is not subject to court supervision.

Avoiding a costly probate and maintaining your privacy are just two of the advantages of creating a living trust as part of your complete estate plan.

Interested in learning more?  Give me a call at 775-392-4223 or email me at feedback@dterralaw.com.

 

 

Dear Readers:  I have added two new categories to Law Blog: Probate Administration and Random (not necessarily law-related).  This is my first post under the Probate Administration category.

When a person writes their Last Will and Testament, they must choose a Personal Representative, who can administer their probate estate after they pass away.  The Personal Representative can be an individual or an established entity, such as a professional trust company or a bank.  Quite often, clients will choose a trusted member of their family to take on this responsibility.  Because the Personal Representative acts in a fiduciary capacity, I encourage my clients to choose wisely and to take the time to discuss the future role with the person they are asking to serve.

In my experience, choosing estate plan decisionmakers, whether it be an agent for a Power of Attorney (effective during the maker’s lifetime), a Personal Representative for a will or Successor Trustee for a trust, is often a challenging task.  It is also important to choose alternates in the event the first choice becomes unavailable to serve.

If a Personal Representative is named in a will, and a probate is necessary, a court case must be filed and a Judge must first approve of the person to serve.  The approval order provides the Personal Representative with the authority to “marshal the assets” of the person who has died and among other things, create an inventory and an accounting.  The whole process can take months, or sometimes, years.

My probate clients are given written Instructions to help them better understand their responsibilities and answer their questions as we proceed through the case. You can find these Instructions on this website under Probate and Estate Administration or just click here:

NVPersonalRepInstructions2022

If a loved one has passed away, and you have been named as the Personal Representative in their will, these Instructions will help you decide if you are able and willing and able to accept this important responsibility.

Interested in learning more?  Give me a call at 775-392-4223 or email me at feedback@dterralaw.com.