Archive for category: Probate

Joint property ownership, such as adding a spouse or family member to a bank account or real estate title, often seems like a convenient solution for succession planning. With survivorship rights, the surviving owner automatically inherits the property without going through probate, and setting it up is usually straightforward. However, this approach can lead to unforeseen complications. Here’s what you should consider before designating someone as a joint owner:

Shared Debts and Obligations

One significant risk of joint property ownership is that the debts or legal issues of the other joint owner could become your responsibility. For instance, if your co-owner faces bankruptcy or tax liens, their creditors might claim your shared property. In Nevada, this could mean that your home or assets could be jeopardized due to your co-owner’s financial troubles, even if you’re not directly involved.

Unintended Inheritance Outcomes

Joint ownership can also result in unintended inheritance scenarios, particularly in blended families. If you and your spouse own property jointly and one of you passes, the surviving spouse will inherit the property. However, if the surviving spouse remarries, your property might end up shared with their new spouse or even the children from that new marriage. This can complicate inheritance plans, especially if you have children from a previous relationship.

Potential Disinheritance

When you designate someone as a joint owner, you forfeit control over how your property is distributed after your death. For example, if you co-own a business with your child and pass away, your will’s provisions might be overridden by the joint ownership, giving your child full control over the business and potentially disinheriting other beneficiaries.

Challenges with Selling or Refinancing

Joint ownership can also complicate the process of selling or refinancing property. All joint owners must agree to any transaction, which can stall sales or refinancing efforts if disagreements arise. In Nevada, if a joint owner is unable to manage their affairs and lacks a durable power of attorney, you might need to go to court to appoint a guardian, which can be costly and contentious.

Capital Gains Tax Implications

Selling property with joint ownership can lead to unexpected capital gains taxes. If you add an adult child as a joint owner and the property appreciates significantly, you both could face a hefty tax bill. Beneficiaries who inherit property, on the other hand, only pay taxes based on the value at the time of inheritance, which can be a significant tax advantage.

Gift Tax Concerns

Adding an unmarried partner as a joint owner might trigger gift taxes, as the IRS considers this transfer a taxable gift. Depending on the property’s value, this can result in additional paperwork and potential tax liabilities.

So What Should You Do?

Given these complexities, it’s crucial to seek professional guidance to navigate the pitfalls of joint property ownership. A knowledgeable estate planning attorney can help you understand the implications and craft a plan that meets your needs and goals while protecting your assets and loved ones.

Williams Starbuck Attorneys at Law is here to help you address the challenges of joint property ownership and develop a comprehensive estate plan. Contact us today for a consultation and ensure your estate plan reflects your intentions and protects your family.

Probate is the court-supervised administration of your estate or will after you die. The probate process involves many steps that take time and involves probate fees as well. All of this can cause a big headache for your grieving family, so it’s no wonder many Las Vegas residents want to avoid probate. 

Luckily, if you take the right steps during estate planning, you can plan for the distribution of your estate and still avoid probate in Las Vegas. Here’s how. 

Work With An Experienced Estate Planning Attorney

The first step in avoiding probate in Las Vegas is to work with a knowledgeable estate planning attorney. They can examine your unique situation and discuss your options for avoiding probate. Together, you can decide what makes the most sense for you and your family. Your attorney can also assist your loved ones if they have questions or concerns about the distribution of your estate after you pass away. 

Avoid Probate In Las Vegas With A Living Trust

If you create a last will and testament to distribute your assets after death, it will still be subject to probate and probate fees. Instead, you can establish a living trust. A living trust puts your estate “in trust” and names a trustee to manage it. Because your assets have already been “distributed” into the trust, probate is unnecessary. Upon your death, the trustee distributes your assets to your designated beneficiaries without going through the courts.

Name Beneficiaries On Your Financial Accounts

If you’re worried about family members not having access to money upon your death, be sure to name them as beneficiaries on your various financial accounts. These “payable on death” accounts include 

• Bank accounts
• Life insurance policies
• 401K plans
• IRA accounts
• Pension plans
• Stocks and bonds

Take the time to request and fill out your financial institutions’ payable-on-death forms. The people you name on the forms will receive those assets immediately after your passing without going through probate. You’ll save them a lot of frustration and ensure they have the necessary funds.  

Designate Joint Ownerships

Another option for avoiding probate in Las Vegas is to hold property jointly. Joint property is legally owned by more than one person. When you die, that property automatically goes to the other owner(s) without going through probate. This most often applies to real estate. If you want a loved one to inherit your house or vacation property, you might consider designating them as joint owners now so that the property does not go through probate later. 

Talk To The Attorneys At Williams Starbuck To Learn More About Avoiding Probate In Las Vegas

You want the best for your family now and after you’re gone. The experienced attorneys at Williams Starbuck can help. We’ll discuss your options for avoiding probate and draw up the legal documents when you have a plan. Get started today by calling us at 1-720-660-9847 or send us a message to schedule a free consultation.