Nevada Estate Planning & Elder Law Information Blog

What Is The Most Common Mistake You Can Make In Estate Planning?

If someone were to ask me what the most common mistake is you can make in estate planning, my answer would be simple.  The most common mistake is simply not getting around to planning at all.  Remember the old adage "failing to plan is like planning to fail".  Well this is particularly true in the case of estate planning. 

  The best way to protect you and your loved ones, is to make the time NOW to plan your future estate.  Both you and your loved ones deserve to have a secure future.  Nothing is more frustrating or frightening to family members than having to guess at what they believe your wishes would have been.  You can take the guess work out of the equation by following these easy pointers:

1. Make a Will.  Everyone needs one.  If you do not draft a will, the state will decide what happens to your property after you die.  A will allows you to designate to whom and how, you want your property to pass.  Whether you have a minimal, modest or large estate, you will want to designate the person you wish to wrap up your business after you have passed away.  This person is called the executor of your estate.  Additionally, your family will already be dealing with the grief of your passing, you do not want to compound that grief by failing to leave any directions about how you want your personal property distributed.  If you want your wedding ring to go to your granddaughter, or your gold watch to pass to your son -- let them know in your will.

2.  Keep Your Beneficiary Designations Current.  I know I have written about this before, but I cannot say it enough -- in many cases the beneficiary designation will trump what is written in your will or trust, so make sure your beneficiary designations are consistent with your other estate planning documents.

3.  Execute Powers of Attorney to Plan for Incapacity.  Who will take care of things for you if you are unable to speak for yourself?  A Durable Power of Attorney and a Medical Power of Attorney can protect both you and your family's interests.  A Durable Power of Attorney allows the person you choose to make legal and financial decisions on your behalf.  A Medical Power of Attorney allows you to state in advance the kind of medical care you would want in the event you become incapacitated, and further allows you to indicate the person you would want to make medical decisions on your behalf if you are unable to speak for yourself.  If you do not have these documents, and attorney and the court will need to become involved at the time of your incapacity, which is not only time consuming, but can be a real financial burden for your family.      

Make the time today to see a professional about your future.  If you do not already have a relationship with a qualified estate planning attorney, please contact The Herr Law Group at 735-4377.  We would love to meet with you and talk to you about your planning options.

Consider the Effect of Your Will or Trust During a Divorce

Did you know that existing wills and trust are not invalidated by a divorce?  The law in Nevada provides that those provisions or awards to a spouse contained in a will or trust  will be invalidated by operation of law, however the other provisions of your estate plan will not be invalidated.  (See NRS 133.115 and NRS 163.565.  This means that bequests to your ex-husband's family, or designations of your ex in-laws as a guardian will continue to stand until the will or trust is revoked. 

Additionally, you should be aware that this statutory provision does not take effect until the divorce is final.  If the will or trust is not revoked and a party dies during the midst of the divorce litigation, the provisions of the surviving estate planning document will stand. Consequently, if you have a will or trust already in effect, and are going through a divorce, talk to your lawyer about revoking these provisions even before your divorce is over, so you can be sure that your estate plan reflects your true wishes in the event of an unforseen tragedy.

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Over the River and Through the Woods to Grandmother’s Probate We Go!

             

Being an executor for an estate is a seriously heavy burden.  Some may say it’s like carrying the weight of the world on your shoulders!  This is one of the many good reasons to explore creating a living trust for your estate.

The executor named in a will is the person responsible for settling and finalizing a deceased person’s estate according to the deceased wishes.  Some states use the term “personal representative” instead of executor.

Here is a list of most of the tasks you are asking your executor or personal representative to do after you are gone:

                         

Find your will
Seek advice from an attorney and retain if necessary
Locate the correct probate forms and apply to appear before the probate court (See Part 2 below)
Publish a “Notice to Creditors” and mail to each known creditor
Send notices of your death to the post office, utilities, banks and credit card companies
Notify beneficiaries named in your will
Inventory all of your assets and decide which to have appraised
Collect debts owed to your estate
File for your Social Security, civil service or  veteran benefits
File for your life insurance and other benefits
File applicable city, state and/or federal tax returns (Hire an accountant if necessary)
File state death and federal estate tax returns
Pay valid claims against your estate
Distribute your assets and obtain receipts from beneficiaries
File papers to finalize your estate

For protection, your personal representative should keep a copy of all records for at least two years. And your personal representative/executor should not hesitate to seek the guidance of a professional if he or she needs help in settling your estate.

And finally, all of this must be done in a timely, organized manner with government/probate court oversight while attempting to maintain family peace and harmony. 

For more insights, the Wall Street Journal recently published a great article "The Burden of Being an Executor" and you can read it by clicking HERE.

Over the River and Through the Woods to Grandmother’s Probate We Go! Part 2

If you have a will, wh ich is the bare minimum in estate planning and would like more insight into the complexities of probate, here is a little additional information:

The Nevada District Court, Probate Department has provided a 12 page “Synopsis of Nevada Probate Law” which you may access by clicking HERE.

Additionally, by clicking HERE and scrolling about halfway down the page you may access all of the following Nevada Probate Documents:

Affidavit of Entitlement to Estate

Affidavit of Publication

Attorney's Procedure Checklist

Certificate of Mailing

Creditor's Claim 

Inventory and Appraisal of Value MULTI PAGE (2) 

Letters of Administration 

Letters of Administration with Will Annexed 

Letters of Special Administration 

Letters Testamentary 

Notice of Hearing for Appointment of Administrator 

Notice of Hearing for Appointment of Special Administrator 

Notice of Hearing for Probate of Will and Issuance of Letters of Administration with Will Annexed 

Notice of Hearing for Probate of Will and Issuance of Letters Testamentary 

Notice of Hearing on First and Final Report and Accounting and Petition for Final Distribution and Approval of Costs and Fees 

Notice to Creditors 

Notice of Hearing to Set Aside Estate Without Administration (NRS 146.070)

Order Admitting Will to Probate and for Issuance of Letters

Order Appointing Administrator 

Order of Final Discharge 

Proof of Blocked Accounts

Avoiding the vast majority of the challenges, hassles and headaches associated with probating your estate is only one of the benefits of better estate planning which starts with a living trust. To learn more, contact our office for our schedule of complimentary estate planning seminars, or for your personal estate planning meeting with Allison. As always, there is no charge for your initial meeting with Attorney Allison Herr.

Estate Planning Basics

Estate Planning is a tool available to everyone with many different applications.  You should consider estate planning,

• If you wish to control how your assets are distributed
• You want to name a guardian for your children or dependent family members
• You want to protect your family from certain types of creditors, or
• You need to reduce the potential tax burden an inheritance would create for your heirs.

The cornerstone of your plan will be either a will or trust.  The primary distinction between the two, is that a will only becomes effective upon your death.  A trust, sometimes referred to as a "living" trust, becomes effective immediately, and can provide for protective actions to occur upon disability, as well as death.  Circumstances upon which you could become disabled could include an illness, or accident.  Anything that would render you unable to take action for yourself.  In such an event, the trust would allow a trustee to make decisions in your best interest and in keeping with the directions established in your trust document.

A trust sometimes costs a bit more to prepare than a will.  This is because a trust is a more involved document and has broader application than a will.

It is important to know that estate planning documents can be useful to many different people, from many different economic backgrounds.  Estate plans are not just for the "rich and famous", and they are not just for avoiding taxes.  If you have young children, you can use these documents to provide for your children's care in your absence.  If you have an elderly parent, or a special needs relative, you can make arrangements for their financial and physical care, if something were to happen to you.  Estate plans are essentially directions for caring, transferring, and protecting your assets and obligations.