Deciding where to spend the golden years of your life is something many people like to fantasize about while toiling away at their 9-to-5 job. However, basking in the warmth of retirement is more than just sun, golf, and cocktails.
Before you decide the state where you want to ride off into the sunset, it's important to know what will happen to your estate once you kick the bucket. Thanks to Nevada probate and estate tax laws, the Silver State may not be one of the worst places to pass away. This is a quick summary of the probate and estate tax laws in Nevada.
No Estate Tax Laws in Nevada
To beneficiaries of an estate, learning that inherited property is located in Nevada can feel like watching all three wheels of a slot machine land on the number 7. Since the state does not impose an estate or inheritance tax upon death, less money is deducted during probate than if the property was located in any other state in America. Even though the beneficiaries may escape paying taxes to the state of Nevada, they need to remember that they still have an obligation to pay federal estate taxes to the IRS.
The following table outlines the specifics of Nevada probate and estate tax laws.
| Code Sections | Nevada Revised Statutes Chapter 375A: Tax On Estates |
| Probate | Under Nevada probate law, probate is the process of verifying the proper transfers of property after a person's death. If the total amount of the deceased person's assets exceeds $20,000, or if real estate is involved, probate is required. |
| Nevada Estate Taxes | Whether or not a beneficiary must pay a Nevada estate tax depends on the date of the decedent's death. If a death occurred before January 1, 2005, then Nevada estate tax law requires payment of estate taxes. If the death occurs on or after this time, Nevada does not require an estate tax. Despite this, certain paperwork must still be filed with the state upon the death of any person who has property in Nevada. |
| Federal Estate Taxes | Although Nevada estate tax law may not require an estate tax, the IRS still collects a tax and requires specific forms to be filed when a person dies. Since filing federal estate taxes can be complicated, the IRS provides answers to frequently asked questions to help people navigate their form requirements. |
Fully understanding probate and estate tax laws can be complicated. If you need to plan out your estate and would like legal assistance, you can contact a Nevada estate planning lawyer through FindLaw. Visit FindLaw's sections on estate tax laws and estate planning for more articles and information on this topic.
