Updated January 25, 2024
The Nevada living trust is similar to a Will in that it provides direction on the distribution of assets and property upon the death of the document’s creator. The difference lies in the fact that a living trust comes into effect immediately upon being signed and that it avoids probate. Probate is the often long and costly process of litigating the Will of a decedent. In a living trust, the creator (Grantor) will sign over ownership of their assets into the trust, placing themselves as the Trustee. At such a time that the Grantor becomes incapacitated, control of the trust will be placed in the hand of the Successor Trustee, who is tasked with dividing the estate according to the stipulations of the trust. By creating a living trust the Grantor avoids the probate of their estate and ensures that their affairs will be properly handled should anything happen to them. An irrevocable living trust has the additional benefit of protecting the trust estate from creditors because all assets are firmly owned by the trust upon creation.
Laws – Chapter 163 (Trusts)
Will (Last Will and Testament) – Whatever property that is not included in the living trust will need to be placed in a Will in order for it to be distributed according to the Grantor’s wishes when they die.
Individual Roles
These are the four (4) main roles that must be appointed in the creation of a living trust:
Grantor (or “Settlor”) – This is the individual that creates and signs the living trust.
Trustee – The person who is placed in control of a living trust. The Grantor will often have themselves positioned as Trustees during their lifetime.
Successor Trustee – The person who becomes active Trustee when the Trustee dies or is incapacitated.
Beneficiaries – The people who are indicated by the living trust to be the inheritors of the trust estate.
Types
Irrevocable – Can’t be altered, amended, revoked, or changed once it has been created (except to change the list of beneficiaries). Has the benefit of protecting the trust estate from creditors and litigation.
Revocable – Can be changed or revoked at any time.
How to Make a Living Trust in Nevada
In accordance with NRS 163.002, a living trust is made when the Settlor properly manifests an intention to create a trust and creates a trust property. To do so, the Settlor must draft a living trust document detailing the assets of the trust and naming a Trustee, Successor Trustee, and Beneficiaries. When signing the living trust, it is recommended that a public notary be present. After creating a living trust, you will need to transfer ownership of all of your assets and property that are itemized within the document into the trust’s name.
Motor Vehicles – For a vehicle to be placed into the trust, the title must be transferred through the Nevada DMV and the Grantor will need to complete a bill of sale.
Real Estate Deeds – Any real estate that is placed in the trust is transferred using a Nevada Deed and filed with your County Recorder’s Office.
Financial Accounts – To transfer bank accounts and investments into your trust, you will need to bring a copy of your living trust to the manager of each account and request to transfer ownership into the trust’s name. In some cases, you may need to open a separate account under the trust in order to accomplish this.
Do I Need a Living Trust?
One of the main advantages of creating a living trust is that your beneficiaries will be able to avoid the litigation, time, and money involved in probate court procedures. However, as per NRS 146.080, the heirs to small estates of $20,000 or less can avoid the probate process by completing a Nevada small estate affidavit. Therefore, if you have an estate of this size, it may not be as prudent to create a living trust. If you have an estate valued at $5,000,000 or more, creating an Irrevocable Living Trust will enable you to avoid estate taxes, while also protecting your estate from creditors and litigation. If you would like to be assured that your estate will be divided according to your wishes and without burdening your beneficiaries with costly court proceedings, creating a living trust is one sure way to accomplish this.