A living trust in Nevada can help you manage your property during your lifetime and determine how your assets should be handled after your death. A properly prepared and funded revocable living trust can also help keep assets out of probate.
Creating a trust, however, involves more than downloading a form and signing it. You need to decide who will manage the trust, who will receive your assets, what happens if you become incapacitated, and which assets should be transferred into the trust.
The State Bar of Nevada describes a revocable living trust as a legal agreement in which you create instructions for how property should be managed. “Revocable” means you can generally change or amend the trust, while “living” means it is created and operates during your lifetime.
What Is a Living Trust in Nevada?
A living trust is a legal arrangement that allows you to place assets under the control of a trustee for the benefit of named beneficiaries.
With a typical revocable living trust, you can create the trust, transfer assets into it, and usually remain in control of those assets during your lifetime.
You can also name a successor trustee who will take over management if you become unable to manage the trust or after your death.
For example, you might create a trust and name:
- Yourself as the grantor or settlor
- Yourself as the initial trustee
- Your spouse or another person as successor trustee
- Your children or other people as beneficiaries
The exact structure depends on your family, assets, and estate-planning goals.
How to Create a Living Trust in Nevada
The basic process involves several important steps:
- Decide whether a living trust is appropriate for you.
- Identify your assets and beneficiaries.
- Choose a trustee and successor trustee.
- Prepare the trust document.
- Sign the trust according to applicable legal requirements.
- Transfer appropriate assets into the trust.
- Prepare related estate-planning documents.
- Keep the trust and beneficiary information updated.
The most important point is that signing the trust document does not necessarily complete the process. Assets generally need to be properly transferred or otherwise coordinated with the trust for the plan to work as intended.
1. Decide Whether You Need a Living Trust
A living trust is not automatically necessary for everyone.
People commonly consider one when they want to:
- Avoid or simplify probate for assets held in the trust
- Maintain greater privacy around the distribution of assets
- Provide instructions for managing property
- Plan for possible incapacity
- Control how beneficiaries receive an inheritance
- Make administration easier for their family after death
The State Bar of Nevada identifies avoiding probate, incapacity planning, legacy planning, asset protection planning, and other goals as common parts of estate planning.
A trust is only one part of an estate plan. Depending on your circumstances, you may also need a will, financial power of attorney, health care power of attorney, advance health care directive, or other documents.
2. Make a List of Your Assets
Before creating the trust, make an inventory of what you own.
Your list might include:
- Your home
- Other real estate
- Bank accounts
- Investment accounts
- Business interests
- Vehicles
- Valuable personal property
- Life insurance
- Retirement accounts
- Digital assets
- Other significant property
The purpose is not simply to list your property. You also need to determine how each asset should be handled.
Some assets may be appropriate for transfer to the trust, while others may be controlled by beneficiary designations or other legal arrangements.
3. Choose Your Trustee
The trustee is responsible for managing trust property according to the terms of the trust.
With a typical revocable living trust, you can serve as your own trustee while you are alive and capable of managing your affairs.
You should also name a successor trustee.
The successor trustee may take over if you become incapacitated and will generally administer the trust after your death.
When selecting a successor trustee, consider someone who is:
- Responsible
- Organized
- Trustworthy
- Financially capable
- Able to follow written instructions
- Willing to take on the responsibility
You can also discuss professional or corporate trustee options with an estate-planning attorney if your circumstances are more complicated.
4. Choose Your Beneficiaries
Beneficiaries are the people or organizations that will receive benefits from the trust.
You might name:
- Your spouse
- Children
- Grandchildren
- Other relatives
- Friends
- Charities
- Other organizations
You should also consider what happens if a beneficiary dies before you.
For example, if you leave your estate to your children, you may want the trust to explain whether a deceased child’s share passes to that child’s children.
A carefully drafted trust can address these situations instead of leaving important questions unanswered.
5. Decide What Happens If You Become Incapacitated
One advantage of a living trust is that it can provide instructions for managing trust property if you can no longer manage it yourself.
For example, you could name a successor trustee who takes over according to the terms of the trust if you become incapacitated.
However, a trust is not a substitute for every incapacity-planning document.
The State Bar of Nevada identifies financial and health-care powers of attorney and advance health-care directives among the documents that may form part of a comprehensive estate plan.
6. Prepare the Nevada Living Trust
The trust document contains the instructions governing the trust.
It generally identifies:
- The person creating the trust
- The trustee
- Successor trustee or trustees
- Beneficiaries
- Trust property
- Trustee powers
- Distribution instructions
- Instructions for incapacity
- What happens after the trust creator dies
- Conditions for changing or terminating the trust
A revocable trust can generally be amended during the creator’s lifetime according to its terms.
The document should reflect your actual circumstances rather than simply using a generic template.
7. Sign the Trust
Once the trust document has been prepared, it needs to be properly executed.
The exact execution requirements can depend on the document and circumstances. Because mistakes in estate-planning documents can create serious problems later, it is worth having a Nevada estate-planning attorney review the documents when the estate is significant or the situation is complicated.
The State Bar of Nevada cautions that generic online estate-planning forms may not address an individual’s circumstances and explains that customized legal advice can be important when creating an effective estate plan.
8. Fund the Living Trust
Funding the trust is one of the most important steps.
Funding generally means transferring ownership of appropriate assets to the trust.
For example, depending on the asset and your estate plan, this might involve:
- Changing the ownership of a bank account
- Retitling certain investment accounts
- Preparing and recording a deed for real estate
- Assigning certain personal property
- Coordinating business interests with the trust
Simply signing a trust document does not automatically transfer everything you own into it.
Nevada trust-law guidance published by the State Bar explains that a revocable trust can avoid probate for assets that have been conveyed to the trust. It also warns that property left outside the trust can remain subject to probate.
This is one of the biggest mistakes people make when creating a living trust.
Example
Suppose you create a revocable living trust but leave your Nevada house titled solely in your individual name.
The trust document may say that the house should eventually go to your children. However, if the property was never properly transferred to the trust, additional estate-administration or probate issues can arise.
For that reason, creating the trust and funding the trust should be treated as two separate steps.
What Assets Should You Put in a Living Trust?
There is no universal list that applies to every person.
Assets commonly considered for a revocable living trust can include:
- Real estate
- Non-retirement investment accounts
- Certain bank accounts
- Business interests
- Valuable personal property
Other assets, such as retirement accounts and life insurance policies, often require special consideration because beneficiary designations can control who receives the asset.
Do not automatically retitle every financial account without checking how the change affects taxes, beneficiary designations, creditor issues, or other aspects of your estate plan.
Do You Still Need a Will if You Have a Living Trust?
Usually, yes, a living trust does not mean you should simply ignore having a will.
A will can serve as a backup for property that was not transferred to the trust.
A pour-over will is commonly used with a revocable living trust. It generally directs certain assets remaining outside the trust at death to the trust, although those assets may still have to pass through probate before being transferred.
Nevada’s probate and trust law has specific rules concerning revocable trusts and pour-over wills, so your estate-planning documents should be coordinated rather than prepared independently.
Does a Living Trust Avoid Probate in Nevada?
A properly funded revocable living trust can help avoid probate for assets held in the trust.
The basic idea is that the trust, rather than you individually, owns the property.
After your death, the successor trustee can generally administer the trust according to its terms without having to transfer every trust-owned asset through the probate process.
The State Bar of Nevada identifies avoiding probate as one of the common goals of estate planning.
However, a living trust does not automatically eliminate probate for everything you own.
Assets outside the trust may still require probate or another form of estate administration.
How Much Does It Cost to Create a Living Trust in Nevada?
The cost varies considerably depending on how complicated your estate is and whether you use an attorney, an online service, or prepare documents yourself.
A simple estate may involve fewer documents and less work than an estate involving:
- Multiple properties
- A business
- Minor children
- Blended families
- Special-needs beneficiaries
- Significant investments
- Out-of-state property
- Asset-protection planning
- Complex tax considerations
The cost of preparing the trust is only part of the process. You should also consider the cost and work involved in properly funding the trust and maintaining the estate plan.
Can You Create a Living Trust Without a Lawyer in Nevada?
It is possible to prepare your own estate-planning documents, but that does not necessarily mean it is a good idea.
The State Bar of Nevada specifically notes that people are legally entitled to prepare their own estate-planning documents but warns that generic forms may fail to accomplish what the person intended or may not adequately address their particular circumstances.
A qualified Nevada estate-planning attorney can help you determine:
- Whether a living trust is appropriate
- Which assets should be placed in the trust
- How property should be titled
- How beneficiary designations should be coordinated
- What happens if you become incapacitated
- How the trust should operate after your death
- Whether additional estate-planning documents are needed
For a straightforward estate, some people may choose to use an online service or prepare documents themselves. For a complex estate, professional legal advice can be especially valuable.
Living Trust vs. Will in Nevada
A will and living trust serve different purposes.
| Feature | Living Trust | Will |
|---|---|---|
| Can control assets during your lifetime | Yes | No |
| Can provide incapacity instructions for trust assets | Yes | No |
| Can help avoid probate for trust-owned assets | Yes | No |
| Names beneficiaries | Yes | Yes |
| Requires proper execution | Yes | Yes |
| Can be changed | Revocable trusts generally can | Yes, while competent |
| Covers property outside the trust | Not automatically | Yes, subject to probate |
Many estate plans use both documents rather than choosing one or the other.
Revocable vs. Irrevocable Trust in Nevada
A revocable living trust can generally be changed or revoked by the person who created it, subject to its terms.
An irrevocable trust generally provides much less flexibility after it is established.
These trusts can serve very different purposes.
A revocable living trust is commonly used for estate administration, probate avoidance, privacy, and incapacity planning.
Irrevocable trusts can be used in more specialized estate-planning and asset-protection situations.
Do not assume that an irrevocable trust is automatically better simply because it offers additional restrictions or protections. The right structure depends on your goals and circumstances.
Does a Living Trust Protect Your Assets?
A revocable living trust should not be confused with an asset-protection trust.
Putting your assets into a revocable trust generally does not mean that your own assets become immune from your creditors or other claims during your lifetime.
The State Bar of Nevada specifically cautions that a revocable living trust is not a way to protect the creator’s own assets from nursing-home costs.
Asset protection is a separate and more specialized area of estate planning.
Nevada Living Trust for a Married Couple
Married couples can structure their estate plans in different ways.
A couple might establish separate trusts or a joint trust depending on their property, goals, tax considerations, family circumstances, and other factors.
Important questions can include:
- What happens when the first spouse dies?
- Who controls the trust afterward?
- How are children from a previous relationship treated?
- What happens if one spouse becomes incapacitated?
- How should jointly owned property be handled?
- How should beneficiary designations coordinate with the trust?
There is no single trust structure that is appropriate for every married couple.
What Happens to a Living Trust After Death?
After the trust creator dies, the successor trustee generally takes over the administration of the trust.
The trustee may need to:
- Locate the trust and related documents.
- Determine what assets are owned by the trust.
- Identify beneficiaries.
- Obtain appropriate valuations.
- Pay valid debts and expenses.
- Handle required tax matters.
- Follow the distribution instructions in the trust.
- Transfer or distribute assets to beneficiaries.
The exact process depends on the terms of the trust and the nature of the estate.
Common Mistakes When Creating a Nevada Living Trust
Creating the trust but not funding it
This is one of the most important mistakes to avoid.
A signed trust that does not own the assets it was intended to control may not accomplish the intended probate-avoidance plan.
Failing to update beneficiary designations
Some accounts pass according to beneficiary designations rather than simply following the instructions in your trust.
Review these designations as part of your overall estate plan.
Naming an unsuitable successor trustee
The person managing your trust may have significant responsibilities.
Choose someone who is capable of handling financial and administrative matters.
Forgetting about newly acquired property
Your estate plan should be reviewed when you acquire significant assets, purchase real estate, get married, divorce, have a child, or experience another major life change.
Using a generic trust without understanding it
A template may not address your specific family and financial circumstances.
The State Bar of Nevada cautions against assuming that generic forms are sufficient for individualized estate planning.
When Should You Update a Nevada Living Trust?
Review your estate plan after major life events, such as:
- Marriage
- Divorce
- Birth or adoption of a child
- Death of a beneficiary
- Death or incapacity of a trustee
- Major change in wealth
- Buying or selling real estate
- Starting or selling a business
- Moving to another state
- Major changes in your family’s circumstances
You should also review the plan periodically to make sure the people named as trustees and beneficiaries are still appropriate.
Nevada Living Trust Checklist
Before considering your estate plan complete, make sure you have addressed:
- Decide whether a living trust fits your goals
- List your assets
- Identify your beneficiaries
- Choose a trustee
- Choose a successor trustee
- Decide what happens if you become incapacitated
- Prepare the trust document
- Properly execute the document
- Transfer appropriate assets to the trust
- Review beneficiary designations
- Consider a pour-over will
- Prepare appropriate financial and health-care documents
- Store your documents securely
- Tell the appropriate people where the documents can be found
- Review the plan after major life changes
Frequently Asked Questions About Nevada Living Trusts
What is the main purpose of a living trust in Nevada?
A revocable living trust can provide instructions for managing property during your lifetime and distributing trust assets after death. It can also help avoid probate for assets properly transferred to the trust.
Do I need a lawyer to create a living trust in Nevada?
You can prepare your own estate-planning documents, but a Nevada estate-planning attorney can help tailor the trust to your circumstances and make sure the trust is coordinated with the rest of your estate plan. The State Bar of Nevada warns that generic forms may not accomplish an individual’s specific estate-planning goals.
How long does it take to create a living trust in Nevada?
The time depends on the complexity of your estate. A straightforward estate may require relatively little preparation, while estates involving businesses, multiple properties, blended families, or specialized planning can take considerably longer.
Does a living trust avoid probate in Nevada?
A properly funded revocable living trust can help avoid probate for assets owned by the trust. Assets that remain outside the trust may still be subject to probate or another estate-administration process.
Can I change my living trust?
A revocable living trust can generally be amended or revoked according to its terms while you have the legal capacity to do so.
What happens if I forget to put an asset in my trust?
The asset may not receive the same probate-avoidance treatment as assets properly transferred to the trust. A pour-over will may provide a backup mechanism, but it does not necessarily mean the asset avoids probate.
Can a living trust protect my assets from creditors?
A standard revocable living trust is generally not designed to provide personal asset protection for the person who created it. Specialized asset-protection planning involves different considerations and should be discussed with a qualified attorney.
Final Thoughts
Creating a living trust in Nevada involves more than completing and signing a trust form. You need to decide who should manage your property, who should benefit from it, what should happen if you become incapacitated, and how your assets should be transferred into the trust.
The funding step is particularly important. A trust may not accomplish its intended probate-avoidance purpose if important assets remain titled in your individual name.
For a simple estate, you may be able to handle some parts of the process yourself. If your estate involves significant assets, real estate, a business, a blended family, special-needs planning, or complicated tax or asset-protection issues, consider consulting a Nevada estate-planning attorney.
The State Bar of Nevada provides a lawyer referral service for people seeking an attorney experienced in estate planning and probate.
This article provides general educational information and is not legal advice. Nevada trust and estate laws can change, and your circumstances may require a different estate-planning strategy.
Steve George is Blogger, a marketer and content writer. He has B.A. in Economics from the University of Washington. Read more about Mzuri Mag.