After a person passes away, there needs to be someone in charge of administering his or her estate. This includes gathering up all of the decedent’s property, paying creditors, and distributing the left over property the decedent’s heirs.

In Nevada, this person is called the “personal representative.” If you were expecting this person to be called the “executor,” you’re not alone. Many people use the term executor to describe a person who is in charge of administering a deceased person’s estate. However, the term is actually a little more nuanced than most people expect.

Specifically, the term “executor” is only used if the deceased person’s will named someone to serve as personal representative. If not, then he or she is actually called the “administrator.”

Confused?

Think about it this way: in the same way that all thumbs are fingers but not all fingers are thumbs, all executors are personal representatives, but not all personal representatives are executors. The difference is whether or not the personal representative was specifically named as executor in the decedent’s will.

Regardless of whether the personal representative is an executor or an administrator, his or her powers and responsibilities are identical. Therefore, it doesn’t really matter what we call it and it’s okay to use the terms interchangeably outside of formal probate court proceedings.

Duties of the Personal Representative (a.k.a Executor or Administrator)

It’s the duty of the Personal Representative to administer the probate estate of the decedent. This includes, among other things:

• Gathering and safeguarding the decedent’s assets
• Locating the decedent’s last will and testament (and lodging it with the court)
• Determining whether a probate proceeding is necessary (and hiring a probate attorney if so)
• Finding the decedent’s heirs and notifying them of his or her death
• Winding down the decedent’s affairs (including closing accounts, paying final bills, and filing final tax returns)
• Distributing the decedent’s property to his or her heirs

If all of the above items seem like a lot of work, you’re right. Serving as personal representative of an estate is not an obligation to be taken likely. Fortunately, the personal representative is entitled to compensation based on the value of the estate, as well as reimbursement for out of pocket expenses.

The post What is an Executor? appeared first on Cross Law Group.

The last thing you want to do after losing a loved one is worry about the administration of his or estate. Fortunately, Nevada law requires you to wait 30 days before initiating any kind of probate proceeding. This gives you an opportunity to focus on your family and grieve for the loss of your loved one. However, there are a few things that you need to do in the meantime to make sure that no problems arise in a subsequent probate proceeding.

Notify the Bank and Other Financial Institutions

To protect against fraud, notify your loved one’s bank, credit card company, and other financial institutions that he or she has passed away. This is an important step to make sure that no one will be permitted to withdraw funds or incur charges on your loved one’s credit cards. Inform them that the executor of the estate intends to close the accounts once the appropriate probate proceeding has started.

Notify Social Security and Veterans Affairs

If your loved one was receiving social security benefits or veteran benefits, notify the appropriate agency immediately. If your loved one was a war veteran, there might be survivor benefits or funeral benefits that could help cover final expenses. If any payment was made after the death of your loved one, the Social Security Administration and Veterans Affairs Administration will automatically reverse the payment after they are notified of death.

Collect or Forward Mail

Collecting your loved one’s mail helps to prevent potential identify theft from third parties who might have access to his or her mailbox. Also, collecting the mail can help you identify your loved one’s assets and debts as account statements and bills arrive by mail. If you do not have easy access to your loved one’s mail box, it might be a good idea to have the post office forward mail to your address.

Secure the Home, Vehicles, and Other Property

As soon as possible after the death of your loved one, you should make appropriate arrangements to secure the residence, vehicles, and other property. We generally suggest changing the locks to ensure that no one gains unauthorized access to the house. Cars and other vehicles should be locked in the garage. Do not let anyone remove items of clothing, jewelry, personal documents, or other property from the residence. You can inform them that they will have an opportunity to collect such property after probate is finished.

Determine if a Will exists

Locate your loved one’s estate planning documents. If he or she had an original will, it will need to be lodged with the court within 30 days of death. Other documents, such as a living trust, do not need to be recorded but will be needed to administer the estate. So, keep them in a safe location after finding them. If someone else is named in the Will as the executor of the estate, you should give them the estate planning documents.

Order Death Certificates

You will need death certificates for a variety of reasons when administering your loved one’s estate. They typically take 1-2 weeks, so order them as early as possible to avoid unwanted delays in administering the estate. It’s a good idea to have at least five certified copies of the death certificate. As many as ten might be needed depending on the circumstances, though.

The post What to Do When a Loved One Dies appeared first on Cross Law Group.

Generally speaking, intestate succession in Nevada gives the decedent’s property to the closest living relatives of the decedent, which tends to depend on whether the decedent was married or not at the time of death.

Intestate Succession – Married Couples

Intestate succession for married couples is a little messy because of the fact that Nevada is a community property state.  This means that each spouse is considered to own 1/2 of any property acquired during the marriage, regardless of which spouse actually paid for the property or whose name is on the title.  The only exception to this rule is for property received by one of the spouses as a gift or inheritance from a third party.  Such property is treated as “separate property” and belongs 100% to the spouse who received it.  Property owned prior to the marriage is also considered “separate property.”

So, under the laws of intestate succession, the decedent’s entire 1/2 interest in the couple’s community property is given to the surviving spouse.  This means that unless the decedent owned separate property, then the surviving spouse gets 100% of the decedent’s property –  while children, friends, and charities get nothing, even if the decedent would’ve wanted otherwise.

Separate property is generally split between the surviving spouse and the other nearest living relatives of the decedent.  More specifically:

• If the decedent had no children, then 100% of the separate property goes to the surviving spouse;
• If the decedent had one child, then the separate property is split equally between the child and the surviving spouse;
• If the decedent had more than one child, then the separate property is split 1/3 to the surviving spouse and 2/3 to the children (shared equally)

Intestate Succession – Unmarried Individuals

If the decedent was unmarried at death, then the intestate succession rules are much easier to apply. This is because there are no longer different rules for community property or separate property to worry about.

Instead, we can just look at all of the decedent’s property and give it to the nearest living relative.  So:

• If the decedent had children, then all of the decedent’s property passes to the children by right of representation (i.e. split equally);
• If the decedent did not have children, then all the decedent’s property passes to the decedent’s parents, if they’re alive.  If they are not, the it goes to the decedent’s siblings;
• If the decedent did not have children and does not have any living parents or siblings, then the property will go to the decedent’s next closest living relative.  To figure out the closest living relative, the court uses a chart of consanguinity;
• Finally, if the decedent does not have any living family at all, then all of the decedent’s property passes to the state of Nevada.  This is known as escheating and is the worst possible outcome in the eyes of most people.

Exception: Property That Does Not Pass Under the Laws of Intestate Succession

It’s worth pointing out that not all types of property are covered by the laws of intestate succession. Certain types of property are not considered part of the decedent’s estate and, therefore, are not covered by these laws:

• Property held in a living trust
• Proceeds from life insurance
• Bank accounts with a payable-on-death designation
• IRA, Roth IRAs, and 401(k)with a payable-on-death designation
• Vehicles with a transfer-on-death designation
• Any property held as a joint tenant with right of survivorship or as community property with right of survivorship

These types of property will pass to the surviving co-owner (in the case of joint or community property) or to the designated beneficiary (in the case of payable-on-death designations) automatically upon death, regardless of whether the decedent left behind a valid will.

Step-children, Half-blood Relatives, and Non-citizens

Nevada’s laws of intestate succession include the following rules for step-children, half-blood relatives, and non-citizens:

• Step children are not considered “children” of the decedent under Nevada’s intestacy laws and will not inherit.  Adopted children, however, inherit in the same way as biological children.
• Half-blood relatives inherit in the same way as full-blood relatives.
• Non-citizens inherit in the same way as US citizens.

The post What is Intestate Succession in Nevada? appeared first on Cross Law Group.

But legally speaking, the word “estate” has an entirely different meaning.

Legal Definition Of “Estate”

Technically speaking, an “estate” is all the property an individual owns at death, including:

• Personal property, like cars, jewelry, and furniture;
• Real estate, like a home (although the way your real estate is titled might take it out of the estate);
• Money, including bank accounts, life insurance policies, stocks and bonds, retirement accounts, and pensions.
• Debts, such as credit card debt, car loans, and mortgages.

Thus, “estate” is actually has a fairly simple definition. However, when you start looking at the practical implications, it can get more complicated, particularly when it comes to probate. That is because a person who passes away is usually considered to have a “probate estate” and a “non-probate estate.”

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