If you have had an elderly relative or a close friend die, you could find yourself in the position of executor of their estate. That, in turn, might make you question whether it is necessary for the estate to go through the probate process of the state of Nevada.
The answer is that it depends. However, in all likelihood, you will need to go through probate.
What determines whether probate is necessary?
Under the Nevada Revised Statutes Chapter 375A, any estate involving real estate or those worth more than $20,000 must be probated. As you can imagine, that likely incudes most adults’ estates, as even owning a late-model vehicle in good condition could pass that threshold.
Beneficiaries still get a big break
In any other state in America, beneficiaries of inherited property owe state inheritance taxes. Nevada stands alone as the only state without inheritance taxes. Don’t forget that you will be taxed federally, though. You can never forget to pay Uncle Sam.
But even though you owe no state taxes, if the decedent owned property anywhere within our state, you must fill out and file Form 706 with the state.
What if the decedent lived in another state?
Many people who live all over the country decide to buy property here, either as a vacation spot, retirement home or just an investment. If they die in another state but own property here as well, they still must complete the aforementioned form and probate the estate.
When must Form 706 be filed?
After the death of the decedent, the executor has nine months to file Form 706. In cases where an extension is needed from the Internal Revenue Service (IRS), executors must file copies of Federal Form 4768 within that same nine-month period. If the extension is granted, make a copy of it and file it as well.
The consequences of failing to properly file the taxes associated with an estate can be severe, so it is important to do it right. If necessary, an amended tax return can be filed to correct any errors.
Confused? Help is available
It is understandable that the probate process and keeping up with all of the tax responsibilities can get downright confusing for executors with no prior legal training. That’s why it is often advisable to seek legal guidance when probating a Nevada estate.Click Here To Request Your Consultation