If a person dies, their estate will typically go through probate. Their will must be delivered to the district court clerk within 30 days of the deceased’s passing. The estate’s personal representative, either named in the will or by the court, is responsible for managing the probate process, which typically takes six to twelve months unless the estate has complexities when it can take even longer.
Many people believe that their estate must go through probate after they die. That’s not necessarily true.
How to avoid probate
Creating a living trust is one of the most effective ways to avoid probate. A trust is a legal arrangement that allows you to transfer all of your assets into the management of a trustee, who holds it for the benefit of another person.
if you want to avoid probate, then you must transfer all assets, titles and deeds into the trust as anything that isn’t transferred is subject to probate. You could, however, set up a pour-over will to mop up anything you miss and automatically pass it to the trust when you die.
Other ways to avoid probate include:
- Beneficiary designations on insurance policies and bank and investment accounts will allow the assets to go directly to them.
- Joint tenancy with the right of survivorship on property allows it to pass directly to the surviving owner. This applies to real estate, bank accounts and other assets.
- Transfer-on-death deeds for real property allow it to bypass probate and go directly to the designated person.
- Gifting during your lifetime can reduce the size of your estate. Nevada allows estates valued at $100,000 or less to pass to the heirs without a formal probate process.
All of these methods require careful planning. Therefore, you need to discuss your situation with someone who can help you determine the best choice for you and your family.