Category Archives: Probate

Nevada Legislature Gives Creditors the Right to Reach Non-Probate Assets

Posted on September 6, 2011 by Sharon M. Jannuzzi | Leave a comment

What happens when someone dies with insufficient assets to
pay his or her creditors? What if the deceased had bank accounts in joint tenancy, or gave a family member a deed to his house effective on death—thus transferring assets without need of a probate proceeding?

It used to be that creditors could not make a claim against such assets; they were limited to estate assets, or if the decedent had created a revocable trust during his lifetime, to assets of the trust. However, if the decedent titled his property in joint tenancy, so that at his death, the property would be transferred to the other joint tenant by operation of law, creditors were out of luck: there was no way to reach such an asset.

The good news for creditors is that the Nevada legislature has recently passed
legislation designed to fix this problem. If an estate has insufficient assets
to satisfy the creditors’ claims made against it, the new law will allow
creditors to recover from those who receive assets outside of probate. In other
words, if Dad left you $15,000 in a joint bank account, you cannot take his
name off the account and go spend the money, if he left unpaid medical bills
that his estate cannot pay. Either the personal representative of the estate,
or the creditor himself, can initiate a proceeding designed to recover the debt
from the proceeds in the joint account.

The new legislation goes into effect October 1, 2011. If you need assistance with this issue, you should contact a qualified Nevada probate attorney.

By Sharon M. Parker, Esq.

Morris Attends Estate Planning Seminar

Posted on July 25, 2011 by Jason C. Morris, Esq. | 1 comment

Jason C. Morris, an associate attorney at Woodburn and Wedge, attended a week-long seminar “Skills Training for Estate Planners.” The Real Property Trust and Estate Law section of the American Bar Association hosted the conference in New York City. The intensive program covered topics such as marital deduction fundamentals, charitable planning, inter vivos gifting, life insurance planning, and benefits planning and drafting.

Morris practices in gift and estate taxation as well as probate and trust administration.

http://goo.gl/lDBYC

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Posted in Estate Planning, Gift, Probate, Tax, Trusts, Wills

Tagged ABA, Seminar

Estate Planning for Young Adults

Posted on May 17, 2011 by Jason C. Morris, Esq. | Leave a comment

A recent survey found that 92% of adults under age 35 do not have a will. Many of my own friends and colleagues fit this description. The most common explanations I hear are (1) they feel that they do not have enough to justify a will or (2) they do not have the means to pay for a will.

As for the first rationale, the label “estate planning” conjures up images of vast wealth and property ownership. In reality, your “estate” comprises all of your personal and financial interests. Providing your family and heirs some direction with regard to your assets lifts a major burden off of their shoulders in the midst of their grieving.

For married couples with children, the primary function of a will should be to name a guardian for their children. Informally asking a family member or friend to look out for your children is insufficient. For single parents, there is ever more urgency to name a guardian. In the event of a simultaneous death, who will become the caregiver for the children?

In addition, for couples with children, would you like your children to receive their inheritance outright at age 18? Without any planning, your children will receive money due to them upon reaching the age of majority. As wonderful as your children may be, few are capable of handling money very well at such at an early age. With some basic will drafting, money and assets can be held in a custodial account until your children are at least age 25.

As for the cost of planning, many young adults overlook the cost of probate. Simply put, you will pay during life or after death. Under Nevada law, if your estate totals more than $20,000 you must file a petition in court to distribute those assets. Even college students with several electronics (laptop, iPad, cell phone), a meager checking account, and their own car can surpass this threshold.

The probate statutes are designed to pass your assets to your family. Most people would like to have a say in how their earthly possessions will pass on to loved ones. Would you rather choose how the assets pass or allow the state to determine their succession?

Also, any good estate planning attorney will prepare documents to assist with incapacity planning. As young adults we tend to be more active and also subject to potentially incapacitating injuries. You should state who you would like to make medical and financial decisions on your behalf. As a result of the well publicized Terri Schiavo case, many are aware of the family entanglements that can ensue without these documents. Medical and financial powers of attorney are vital components of your estate plan.

Most do not blink at paying for home, auto and health insurance. Similar to these “just in case” protections, a simple estate plan acts as a safeguard for you and your family. For help with your estate planning you should contact a qualified estate planning attorney.

Don L. Ross Presents at “It’s Your Estate” Seminars

Posted on April 21, 2011 by Jason C. Morris, Esq. | Leave a comment

KNPB Channel 5 and the Community Foundation of Western Nevada, along with 10 other non-profit sponsors, present a series of free, in-depth workshops on estate planning and family financial planning, “It’s Your Estate.”

Don L. Ross, Esq., will present on advanced estate planning topics including AB trusts, life insurance trusts, and grantor retained annuity trusts. Don will present at the following times and locations:

Tuesday, April 26, 2011, 11:00 a.m. at the North Valleys Library, 1075 North Hills Blvd #340, Reno.

Wednesday, April 27, 2011, 2:00 p.m. at the Spanish Springs Library, 7100 Pyramid Highway, Sparks.

Thursday, April 28th, 2011, 3:00 p.m. at the South Valleys Library, 15650A Wedge Parkway, Reno.

You can call Sandy at the Community Foundation 775-333-5499 to reserve your spot at the class location of your choice!

How Do You Hold Title to Your Assets?

Posted on March 18, 2011 by Jason C. Morris, Esq. | 3 comments

How you hold title to an asset affects how it can be disposed of during lifetime and how it will be distributed upon your death. Title to property affects inheritance taxes and the extent to which probate may be needed.

Community Property. Nevada is a community property state. Property acquired during marriage by the labor of either or both spouses is deemed “community property” and each spouse has an equal interest therein. It is possible to acquire or hold property as “community property” or as “community property with right of survivorship.” The additional language “with right of survivorship” ensures that the surviving spouse will receive title to the whole of the asset upon the death of the first spouse. Holding an asset as community property also creates a tax advantage, in that the surviving spouse will get a step up in basis on the asset to the date of death of the first spouse. In other words, the surviving spouse will not have to pay a capital gains tax on the increase in value from the date of purchase to the date of the first spouse’s death.

Separate Property. A married person may also hold property as his or her separate property. This includes property that was acquired prior to marriage, or property acquired during marriage by one spouse only as a gift or an inheritance. A spouse with separate property may make a gift of that property to the community by deeding or changing title of the asset to community property. If the spouse continues to hold the property as separate, upon death the spouse may will it to anyone he wishes; the surviving spouse does not have any legal right to it. However, if a spouse with separate property dies without a will, separate property will pass according to Nevada’s laws on intestate succession, and the surviving spouse will be entitled to a share of the property.

Joint Tenancy. Two persons, whether or not married, may hold property as joint tenants. Upon the death of one joint tenant, the surviving joint tenant becomes the owner of the whole of the property. In other words, the heirs of the first joint tenant to die do not inherit that person’s interest in the property; it passes by operation of law to the surviving joint tenant. For this reason, sometimes joint tenancy language also says “with right of survivorship.” For married couples, a partial step-up in basis is available if title is held in joint tenancy.

Couples should be aware of and sensitive to the manner in which they hold title. A change in how an asset is titled will change how the asset is distributed at death. If you have questions or concerns, you should contact a qualified Nevada attorney.

By: Sharon M. Parker, Esq.

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Posted in Probate, Tax, Wills

Tagged Community Property, Joint Tenancy, Nevada, Separate Property, Step-up in Basis