Probate is a court case that allows the orderly transfer of property from a deceased person to their heirs. Probate changes title (ownership) of property into the names of the heirs or beneficiaries using an order provided by a probate judge. The judge will provide this order after specific legal steps are taken.
What types of probate cases does Nevada have?
There are two types of probate cases in Nevada: informal and formal.
Informal cases are for smaller estates, under $100,000 in value. These cases do not require that an executor be appointed for the estate. Instead, a short document is used to transfer title to assets to the people listed in the will, or if there is no will, to the people identified by Nevada law as the heirs.
In some cases, the document does not need to be filed in court. As long as the estate does not have real estate or any unpaid debts, an affidavit of entitlement can be used to transfer bank accounts and other property, up to the “applicable amount.” The applicable amount is (as of 2018) $100,000 if the recipient of the estate is the deceased’s spouse, or $25,000 if the recipient is anyone else.
If the estate has real estate, debts, or is over the applicable amount, a different type of probate must be used. For estates over the applicable amount or under $100,000, a summary administration probate can be used. This type of case requires court filings and at least one hearing before the judge, but it is a relatively short process.
For larger estates, or estates that have business to handle before property ownership can be transferred (such as resolving a lawsuit, selling real estate), a formal probate will be required. In formal probate, an executor is appointed as the personal representative of the estate, and this person must account to the court and the heirs about how the property is handled and how it will be distributed. If the estate is more than $100,000, but less than $300,000, a “summary” or shortened probate procedure can be used. This is called summary administration. For estates over $300,00 (as of 2018), a general probate case is required.
How is the value of a probate estate calculated in Nevada?
The value of an estate is calculated by adding together the "garage sale value" of personal property; the appraised value of assets like jewelry, art, and collectibles; the cash value of bank accounts and investment accounts; and the appraised value of real estate, and then subtracting the amount of secured debt. Secured debt is a loan that has collateral, such as a mortgage on a home, or a lien on a car. Credit card debt is typically not secured. It is still owed by the estate, but it does not reduce the value of the estate for purposes of figuring out the value of the estate, and in turn, which type of probate proceeding is required.
Is probate required in Nevada?
Probate is required when a person who dies owns assets in his or her name only, or with other people as tenants in common.
Assets that have “joint tenants with right of survivorship” or “community property with right of survivorship” do not pass through probate. Instead, title can be transferred to the survivor using a certificate of incumbency or affidavit terminating joint tenancy. This document is recorded with the county recorder’s office.
Assets that have beneficiary designations (which may also be known as “payable on death” accounts) do not pass through probate. This includes bank accounts (if the beneficiary is named and still alive), retirement accounts, annuity contracts and insurance policies.
If probate is required to change ownership of assets, the next question is whether the value of the assets is low enough to qualify for an expedited probate process, or whether it must go through the standard process.
When does probate start in Nevada?
Most types of probate cannot begin until thirty days have passed since the date the deceased died. In some very small estates, the heirs must wait forty days from the date of death before beginning probate.
How long does probate take? Or, when can I receive my inheritance?
Informal probate cases can take as little as one week from the start of probate, but typically take approximately three weeks. Taking into account that most cases cannot start until thirty to forty days after the date of death, most small estates can be resolved about two months after death.
Larger estates that require formal probate last a minimum of four months (estates under $300,000), but can last much longer. An estate over $300,000 will take at least nine months to complete, but there is a case in Clark County currently that has been ongoing for thirty years (as of 2018)! Most estates over $300,000 take approximately eighteen months to complete.
There are many reasons why probate takes a long time, including periods of time required by law to allow parties who may have an interest in the estate to come forward. The estate cannot be distributed until the court is sure that beneficiaries and creditors have had time to come forward.
In some cases, a partial distribution of an estate may be made in the middle of the case, but this assumes that the estate is large enough that the undistributed amount would be sufficient to pay debts and administrative costs.
How does probate work in Nevada?
Once the value of estate is determined, the responsible person can determine which type of probate case is required. Then, an attorney will prepare documents for the responsible person to sign, and submit them to the court. If there is a will, the original will be filed with the court clerk’s office. Then, the attorney requests a hearing to prove that the will is valid and notifies all interested parties about the case. If the will is proven, the court will appoint an executor. If there is no will, the court will appoint a personal representative or administrator.
In formal probate cases, the personal representative will swear under oath to act in the best interest of the estate. The oath will be recorded on a document called Letters Testamentary or Letters of Administration. The letters allow the responsible for person to act for the estate, doing things like closing financial accounts, signing a listing agreement to sell real property, and hiring professionals such as accountants and appraisers.
Then, an inventory of the estate must be filed with the court to show the starting value of all of the assets. To close probate, a final accounting will be required to show the court how much money was received for the assets if they were sold and how the assets will be distributed.
After the final distribution, it is best practice to wait thirty days before distributing assets because there is a thirty day window to file an appeal by a creditor or heir. If this type of dispute is filed, and the creditor or heir wins, you need to have the assets safeguarded to distribute properly.
Receipts should be collected from people and companies who received estate assets.
Do I have to publish notice in the newspaper about the probate case?
In formal probates, you will have to publish notice of the case at least once. In larger estates, you will have to publish at least twice. If you are selling real estate, you must publish notice of the court hearing that will approve the sale of property. If there are heirs you cannot find, you must also publish notice again. There are very specific rules on notice in a probate case, including what type of publication is required, for how long notice must be published, and how far in advance of a court date notice must be published. These rules differ depending on the type of probate case that has been filed.