How does the executor sell a vehicle?

With some exceptions, most vehicles lose value quickly. Therefore, the Clark County probate court does not require permission in advance to sell a vehicle (unlike real estate, which does require approval in advance). Once the executor is appointed, he or she may sell the vehicle like a usual sale, except that he or she will sign as the executor of the estate of the deceased. 

Usual title rules apply, so if the vehicle is titled in the name of a deceased and another person, the vehicle may belong to the other person in its entirety, or the proceeds may have to be split with that person. 

Additionally, car payments, if any, must continue to be paid to avoid a repossession, and when the vehicle is sold, the balance of the loan must be paid off.

Will estate taxes be due?

Estate taxes only apply to estates over a certain value. There are estate taxes imposed by the Internal Revenue Services at the federal level, and in some states, by a state department of taxation. Nevada does not tax estates. Currently, the federal government taxes estates with values over $5.5 million, on the amount over $5.5 million. However, this is a complicated topic, and that figure can be decreased if the deceased made large gifts during life or increased if the deceased had a spouse who died first. 

It is uncommon that an estate of large value will pay inheritance or estate taxes, because the deceased often makes arrangements in advance to minimize the tax. 

It is important to understand the difference between estate taxes and income taxes. If the deceased worked during his last year of life, taxes may be due on that income. In any case, a tax return will likely be due by April 15th of the following year, just like during life.

If the deceased did not work, but had increases on the value of stocks or investments between the date of death and the date the money is distributed to heirs, there could be tax due on the increase in value. Usually that is paid at the estate level before money is distributed, but be sure to discuss with a qualified accountant before spending the funds without setting aside tax money. 

Property was taken from the deceased's house without permission

Personal property, like jewelry, clothing, furniture, vehicles, and collections, belong to the estate of the deceased person. Because these items (with the exception of vehicles) do not have titles, it is difficult to determine whether the deceased gave away, gifted, or promised these items to someone before dying. Therefore, disputes often arise over the rightful heir of personal property. 

In general, personal property has more sentimental value than monetary value, making it even more difficult to resolve disputes about personal property. In fact, regularly parties spend hundreds or thousands of dollars in attorney fees fighting over personal property that has no monetary value. 

In estates with special property of value (such as appraised art, fine jewelry, vintage automobiles, etc.), an appraisal and inventory will be required so that the heirs are aware of the valuable property in the estate. 

For property without significant monetary value, typically the executor will allow heirs to select items of meaning, if any, and donate or sell the rest. 

If valuable property is removed from the property after death and without the executor’s permission or knowledge, the executor can “claw back” that property, and the court can penalize the person who took it in an amount three times the value of the property. 

After a person dies, it is critical to communicate the process for handling personal property to the family and to secure the property, preferably with an alarm and cameras if budget allows. It is very common that vacant homes are vandalized or burglarized, which causes great expense to the estate and difficulty for the executor.

A family member is living in the deceased's house

It is very common that a family member or friend is living in the deceased’s house for a period of time after the deceased passed away. Unless the heirs come to an agreement with this person, the person residing in the property owes a fair market rental rate for their stay. Even if they are not paying on a monthly basis, it will be subtracted from their share of the estate, if any. 

This can also raise problems if the deceased was also living in the home at the time of his or her death and left personal possessions there. The person living in the home may claim that those possessions were gifted to him or her, when in reality, they are property of the estate that should be sold and/or split among the heirs.

Does probate stop a foreclosure?

The probate case does not stop a foreclosure from going forward. However, if we learn that a foreclosure could happen soon, we can ask the court to “enjoin” or stop the foreclosure temporarily to allow the property to be listed and sold to an ordinary buyer for full price, rather than selling at a foreclosure auction that is unlikely to get the full price for the property.

Inheriting a house with a mortgage or liens

If a home in a probate case has a mortgage, the payments must still be made, taxes and insurance paid, and other utilities kept current. If the house is sold, the mortgage and other liens must be paid from the sale proceeds. 

In some cases, if the executor or an heir does not want to sell the property, he or she can assume the mortgage. This is a complex process and whether it is possible to assume the mortgage depends on the bank and whether the heir qualifies for the mortgage. 

Executors and family members are often under the mistaken belief that the mortgage company will not foreclose if the property is involved in a probate case.

Nevada Set Aside Estate Without Administration

You may set aside an estate without administration if the assets total less than $100,000. If the estate includes real estate, the mortgage debt can be subtracted from the value of the estate to calculate the estate value. 

Without administration means that an executor is not appointed, and instead, the court “sets aside” the estate to the rightful heirs in one step. 

Therefore, if there are many debts, the possibility of litigation, or you wish to sell the real estate rather than setting it aside (such as when there are multiple heirs), you may want to file a probate that includes administration (like a summary administration) to have an executor appointed who can take these steps.

Types of probate in Nevada

Nevada has four types of probate. 

For estates under $25,000 and that do not include real estate, an Affidavit of Entitlement can be used to transfer estate assets. The affidavit requires the claimant to make certain promises under penalty of perjury, to provide notice of the affidavit to certain people, and to distribute the funds and property to the rightful heirs. If the deceased was your spouse, you can use an affidavit for amounts greater than $25,000, but this should be done with the help of an attorney. 

For estates between $25,000 and $100,000, a probate called a Set Aside can be used. This is discussed in more detail below. 

For estates between $100,000 and $300,000, a Summary Administration probate is required. If these are uncontested and there is no real estate to sell, these cases can be completed in as little as five to six months. 

For estates over $300,000, a General Administration probate is required. These cases can be completed in as little as seven to nine months if there is no real estate to sell.