If you are married or plan on getting married in the state of Nevada, there are certain things you need to understand about Nevada community property laws. Community property laws will dictate how property is owned in a marriage and how it will be included in your estate plan.
To better understand how community property works in Nevada and how this will impact estate planning, you need to hire an estate planning attorney to help you navigate this process. At Morris Estate Planning Attorneys, our collective years of experience in estate planning have equipped us with the knowledge we need to help our clients create the right estate plan for their situation. Keep reading to find out everything you need to know about Nevada community property estate laws and their impact on your estate plan.
How Nevada Community Property Laws Work
Property ownership can seem quite complex since Nevada is just one of nine states that are community property states in the United States. This means that ownership of assets and incomes are owned equally between the spouses. Ultimately, this will impact how assets are distributed after one spouse dies since these are shared assets.
Community property laws in Nevada also impact the debt the couple has as it is owned equally between the spouses. The only time debt is discounted from this is if it was incurred before the couple got married. Depending on the type of debt and the quantity, this can have an impact on the overall value of the estate.
How Do Nevada Community Property State Laws Impact Estate Planning?
How Nevada defines property in a marriage is going to have a significant impact on your estate plan since it outlines how your estate will be distributed after your death. Because community property is owned jointly by the spouses, if you were to pass away, the property would primarily go to your surviving spouse. In contrast, to the extent you have separate property and die intestate, it is likely that your spouse would only receive part of that property.
As community property is owned by both spouses, naturally both spouses need to be involved in the estate planning process together. They need to make decisions together on how their assets are distributed when they pass away. They should look at executing a will and/or a trust to ensure that their wishes are legally valid.
Alternative Inheritance Arrangements For Couples
There are some instances where couples may be able to take steps to better define how they want their assets to be distributed. This can help you override some of the standard Nevada community property laws so that your assets are distributed in a way that honors your wishes. Examples of how couples can go about doing this are by using prenuptial and postnuptial agreements to clearly define what they consider to be community property vs. separate property.
Creating your estate plan may also be a bit more complex for blended families, especially when it comes to stepchildren. This is because only natural family members will be included in inheritance laws unless you specifically include these individuals in your estate plan. This may leave out other people who you want to provide for. You may also want to provide more assets and provisions for certain family members, such as children with special needs, or to establish certain parameters for certain beneficiaries to receive distributions, such as for minors or for those with maturity or addictive behavior issues.
No matter your goals for your estate plan, you need to take the necessary step of hiring an estate planning attorney. Estate planning in Nevada is quite complex, especially if you have specific wishes pertaining to asset distribution. A Nevada attorney can ensure everything is done legally and your last wishes are clearly outlined for your surviving loved ones.
Community Property vs. Separate Property in Nevada Estate Planning
If you are creating your estate plan, it is also crucial that you understand the difference between community property and separate property in Nevada. Unlike community property, which is owned and controlled equally by the spouses, separate property is owned by only one of the spouses. Separate property is usually defined as property that falls into one of these categories:
- Property owned by one of the spouses before the marriage
- Property obtained as a gift
- Property obtained as an inheritance
- Property obtained through a personal injury claim during the marriage
In some situations, separate property may become community property if it becomes indistinguishable from the latter. For instance, if you have received inheritance in the form of money, if you keep that in a bank account that is also owned by your spouse, it may no longer be separate from your shared funds.
If you are working on your estate plan, you need to seek the help of an experienced estate planning attorney in Nevada. An attorney will have experience with Nevada’s community property laws and can help you better distinguish between community property vs. separate property. This is a critical step in your estate plan since separate property doesn’t always automatically go to your surviving spouse.
Contact a Dependable Estate Planning Attorney at Morris Estate Planning Attorneys
Because Nevada is a community property state, it can be challenging to navigate how this will impact your estate plan. To better prepare for the future and ensure your assets go to the proper beneficiaries, you need to be proactive and create an estate plan for your surviving loved ones.
At Morris Estate Planning Attorneys, our estate planning lawyers are dedicated to providing our Nevada clients with the legal guidance they need as they create their estate plans. Contact us today at 702-471-0990 to schedule a meeting with one of our attorneys.