Estate planning is often thought of something a person should do in their later years. However, there are a number of reasons why a person should not wait to do his or her estate planning earlier. The following U.S. News article, aimed at those under 40, provides a number of issues to consider:
-Attorney A. Collins Hunsaker
Something a little different for our readers this week, but a great lesson to be had! Read the following article from msn.com. Make sure your family is really taken care of.
In this age of do-it-yourself frugality, many surviving spouses and family members are unfortunately experiencing the hidden cost of a loved one’s use of internet and other legal forms for estate planning. Oftentimes the Trust or Will form used by the decedent is improperly completed, does not meet the needs and desires of the person and family, and is contradictory and/or ambiguous. In the latter situation, a court must try and interpret what the decedent intended after the death of the loved one. This is expensive and time-consuming, and the Court may or may not be correct in its attempt to decipher the true intent of the decedent.
Everyone’s estate plan is unique to his or her specific desires and needs. Some of the many considerations for your Trust and Will are:
One of the best analogies to this situation is a medical prescription pad: just because you have a valid medical prescription pad, that does not mean you should be writing prescriptions. The same is true in the legal profession: just because you have a standard, generic legal Trust or Will form, that does not mean you should complete it in an attempt to meet your individual estate planning needs.
A question often presented to me by some clients is whether or not there is an inheritance tax imposed upon the client’s beneficiaries after his or her death. Both in Nevada and federally, there is no tax imposed upon a beneficiary who receives a deceased person’s property. Currently, there are a minority of states that do impose such a tax. The tax rate usually depends upon who inherits the property, and property passing to a decedent’s spouse or to other close relatives is typically taxed at a very low rate or not taxed at all.
Inheritance tax should not be confused with estate tax. The difference between inheritance and estate tax is a matter of who is responsible for paying the tax. Estate taxes are levied on the total value of a decedent’s property and must be paid out before distributions are made to the decedent’s beneficiaries. Whereas, the inheritance tax is calculated separately for each individual beneficiary, and the beneficiary is responsible for paying the tax. Fortunately, Nevada does not impose an estate tax upon a decedent’s property. Federally speaking, there is an estate tax, but there are significant exemptions that currently exist.
If you should have further questions regarding estate tax, inheritance tax, or estate planning matters please feel free to contact the attorneys at Jeffrey Burr.
The recent Supreme Court decision in Windsor v. U.S., a case taking issue with the treatment of federal estate taxation for a married same-sex couple, has effectively struck down Section 3 of the Defense of Marriage Act, most often referred to as DOMA, retroactively. Due to this decision, married same-sex couples can now enjoy a number of federal tax advantages including:
According to the current IRS rules, the determination of whether a couple is married is a matter of state law of the couple’s current residence. Without further guidance at this time, a same-sex couple married in a state which allows same-sex marriage, but not currently residing in a state which does not recognize such marriage, like Nevada, may not be considered married for federal taxation purposes. It is anticipated that the IRS will issue guidance on these issues. Many experts take the position that it is very likely that the IRS will recognize any legally performed same-sex marriage no matter where the couple might currently reside.
At Jeffrey Burr, we can assist same-sex couples, married or otherwise, evaluate their estate planning needs and tailor a plan accordingly. Feel free to contact the Jeffrey Burr Law Firm for a free consultation.
In previous blog articles, I wrote about the importance of avoiding probate. However, where probate is unavoidable, there are several provisions in Title 12 of the Nevada Revised Statutes that can alleviate the burden of a full probate proceeding where the estate is less than $500,000:
1. Affidavit of Entitlement - NRS 146.080 allows estates with a total value of less than $25,000 (not including any real property) to be distributed directly to beneficiaries through the use of an affidavit. The affidavit does not require court supervision and can be presented to any person who holds estate property. The property is then distributed directly to the rightful beneficiaries of the estate without going through a formal probate. This amount increases from $25,000 to $100,000 for a surviving spouse of the decedent.
There are certain requirements outlined in NRS 146.080 that must be adhered to for the affidavit to work. For example, among other things, the affidavit may not be filed until 40 days after the date of death and the affidavit must state that all funeral expenses and debts have been paid or provided for.
2. Set Aside - NRS 146.070 provides for the “set-aside” of small estates in two situations. The first is where "the gross value of [the estate], after deducting any encumbrances does not exceed $150,000" and the estate assets are distributed to the surviving spouse and/or minor children. The court, at its discretion, can direct that the entire estate be set-aside for their support and the decedent’s debts, if any, are discharged.
The second situation is where there is no surviving spouse or minor children. The court can set aside the estate to the intestate heirs or beneficiaries of a last will and testament provided that the gross value of the estate is less than $150,000. In the second situation, the creditors of the estate must be paid. Although NRS 146.070 requires that a petition be filed with the court, the procedure is much faster and easier than a full probate administration.
3. Summary Administration – NRS Chapter 145 provides that if the gross value of the estate after deducting encumbrances is less than $500,000, then summary administration is appropriate. Although the steps for a summary administration are similar to a full probate administration, the provisions of NRS Chapter 145 provide for some relief in a summary administration. For instance, the creditor claims period is shortened to 60 days and the initial petition for issuance of letters does not need to be published.
Should you have any questions regarding probate, feel free to contact our office.
Revised: 2025
It is often asked by clients, how often should I review my estate planning documents? Although we do the best we can to create a flexible estate plan, there are a couple of situations that should motivate clients to dust off their estate planning documents for a review – changes in life and changes in the law.
There are a number of potential life changes that will affect a person’s estate plan including but not limited to: change in marital status, birth of children or grandchildren, change in child’s marital status, incapacity or death of beneficiary, change in personal economic circumstances, or moving to another state. Such changes most likely will have a direct impact on a person’s estate plan which could necessitate an update to the person’s estate planning documents.
It is impossible to predict changes to the laws that affect a person’s estate plan. For example, earlier this year Congress made significant changes to the federal estate tax laws. As a result of these changes, many older estate plans may result in higher income taxes and be more complicated than necessary. At Jeffrey Burr, we strive to keep our clients reasonably informed of these types of changes through newsletters, blog posts, etc. However, for most clients, a short half hour consultation may provide the ultimate peace of mind as to whether or not changes are necessary.
If you have not recently reviewed your estate planning documents and are unsure as to whether or not updates are necessary, please give the Jeffrey Burr Law Firm a call to schedule a consultation with an attorney.
Often times, the public is under the misconception that if a person dies without a will, their assets will go to the state of Nevada. However, this is only a rumor. In reality, if a person dies without a will, the state of Nevada has a set of default rules (intestacy laws) under NRS Chapter 134 that directs who receives an inheritance in the absence of a will. The beneficiaries are different depending on whether the person is married or single or has separate property or community property.
In general, the deceased person’s interest in all community property passes to the surviving spouse, if any. Separate property is more complicated. Details regarding the default distribution of separate property assets can be found in NRS Chapter 134. The basic default rules for a surviving spouse or children are as follows:
Unfortunately, many times the default rules do not distribute the assets as the decedent intended (or as the surviving family members expected). A surviving spouse may end up sharing the estate with the children or the assets may be distributed to unintended beneficiaries. In addition, accounts with designated beneficiaries may trump the default (intestacy) rules. In my experience, clients are generally unhappy with the default rules and as such, a person should always have at least a basic estate plan to make sure their assets go to the beneficiaries of their choice.
Should you have any questions about avoiding or interpreting the Nevada default rules, please contact our office at (702) 433-4455 or email us via our Contact Us portion of our website.
The retirement, disability or death of a business owner can create serious problems for the owner or the owner’s family. In a closely held business with a small number of owners, in all likelihood there will not be a market for the sale of the interest of an owner who retires, becomes disabled or dies. The solution is a buy-sell agreement that requires mandatory buyout of an interest in the event of the occurrence of such contingencies. A buy-sell agreement provides for the mandatory sale of an interest by an owner (or his or her estate) who retires, becomes disabled or dies. The buy-sell agreement contains a method for determining the sale price in such scenarios. The price can be a stated price adjusted annually by the owners, book value, formulas tied to earnings, fair market value based on appraisals, et cetera. The agreement also provides for a method and time of payment, for example a lump sum payment within ninety days of the triggering event or annual installments at a set interest rate over a certain number of years. The business can provide for life insurance on an owner payable to the business to be used to fund the buyout in the event of the death of the owner-insured.
Buy-sell agreements have a number of benefits from an estate planning point of view. An owner (and the owner’s family) during the owner’s lifetime has the security of a mandatory buyout upon the owner’s retirement or disability. Also an owner’s family has the peace of mind that there is a certain market for the mandatory purchase of a deceased owner’s interest at a set price. Also the sale price determines the value of the interest for federal estate tax purposes. This helps avoid disputes with the IRS over the proper valuation of a decedent’s closely held business interest. Buy-sell agreements are also valuable succession tools to be used in a family owned business. For these and other reasons, a buy-sell agreement should always be part of one’s estate plan when a closely held or family business is involved.
Most people are aware that a good estate plan should contain provisions to distribute assets to loved ones while avoiding probate. However many families also have pets that are part of the family. It is important to include provisions in your estate plan to address what will happen to your pets in the event of your death. This can include who will care for your pets if something happens to you and can also include financial distributions to care for your pets. Nevada law also specifically allows for pet trusts. This type of planning can give you the peace of mind that your family, including your beloved pets, will be taken care of should something should happen to you. Should you have any questions regarding including your pets in your estate plan, feel free to call one of our attorneys to discuss how you can make sure your pets are taken care of.
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