Though the foundation and standard for estate planning is constant, state laws play a significant role in dictating the intricate aspects of an estate plan. Topics such as probate, estate taxes, and the legal formalities regarding the will and trust differ on the state level. It is imperative to be competent in your state’s laws to be functional and knowledgeable when it comes to your own estate plan.
Nevada’s Estate and Inheritance Taxes
Estate and inheritance taxes range in policy on the state level. Currently, 12 states require payment of an estate tax under existing laws and 6 states levy an inheritance tax. As of 2025, Maryland is the only state that imposes both. Other states such as Nevada do not impose either an estate or inheritance tax. It is important to acknowledge that tax laws can change over time and it is always best to consult with a tax professional to have the most up to date information regarding these policies.
What is Probate?
To provide more clarity, Probate is the legal process of distributing the assets of a member of a trust who is deceased to their beneficiaries. Probate helps ensure the deceased person’s assets and financial obligations are paid and settled before the remaining assets are distributed to their beneficiaries under the courts supervision. By undergoing this process, it helps confirm that assets are transferred and settled properly and on an efficient timeline. Probate helps streamline these processes and takes into account the size of the estate under court supervision. The probate court overlooks the executor’s actions and ensures the executor is abiding by the states law. For Nevada, this is set forth in the Nevada Revised Statutes Chapters 132-156.
Nevada Specific Probate…
For a general overview, there are specific thresholds in Nevada that specify how probate laws
differ depending on the value of the estate.
-Any value at $25,000 minimum in personal property does not require action for formal probate. By providing a small estate affidavit, most assets can be distributed without any inquiries with the court, barring some restrictions.
-Estates valued under $100,000 typically require a Set Aside Petition which is a legal request filed with the court to transfer the asset directly to their rightful heirs without the full probate process. Generally, under this threshold, the court will require one hearing to review the petition. After review and granting request, the estate is then successfully transferred.
– Estates valued between $100,000 and $300,000, under current Nevada law, Summary Administration is offered which can be viewed as a faster and affordable process in comparison to formal probate. In this process, a petition is filled with the court to elect an administrator. Though this process has additional steps, it is less complex and expensive than formal probate.
-With estates valued over $300,000, the process of General Administration is selected, and this is the most complex and costly type of probate involving a series of additional steps.
Though these thresholds are not fixed amounts, it is important to acknowledge that not all assets require to go through probate. With the proper documentation and preparation such as knowledge of what specific documents could be prepared to prevent probate, this can be a game changer for your family’s legacy. Nonetheless, Nevada’s Probate system allows for flexibility as they offer different processes for estates varying in size compared to other states.
However, by ensuring your estate plan includes a Revocable Living Trust that is signed, funded, and properly structured, this document is the security blanket for any mishap and offers control over your legacy. Contact Mountain Legacy Law, PLLC today to talk more about what option is best for you.
1 Estate and Inheritance Taxes, Tax Foundation, https://taxfoundation.org/data/all/state/estate-inheritance-taxes/#:~:text=The%20tax%20is%20paid%20by,estate%20and%20an%20inheritance%20tax, (last visited January 28, 2025).
2 Complete List of States with Estate Taxes, JRC Insurance Group, https://www.jrcinsurancegroup.com/the-complete-list-of-states-with-estate-taxes/#:~:text=Source:%20Maine.Gov-,Maryland%20Estate%20Tax%20Exemptions%20and%20Rates,impose%20both%20%22death%22%20taxes, (last visited January 28, 2025).
4Nevada Probate: Estate Value Determines your Timeline, Ocampo Wiseman Law, https://www.ocampowisemanlaw.com/post/nevada-probate-estate-value-determines-your-timeline, January 29, 2025; See also e.g., Nevada Revised Statutes Chapters 132-156.
5 Id.
6 Id.
7 Id.
