When properly drafted, executed, and administered, a trust helps the estate avoid the necessity of probate administration. However, when the probate process is unavoidable, a thorough checklist can help to initiate and conduct the probate proceedings in a timely and efficient manner.
The correct inventory of probate assets is crucial, even before the probate process commences, because, in the state of Nevada, the type of probate and the accompanying procedures depend on the net value of the estate.
Oftentimes, real estate is the largest asset, even if mortgaged. The information about the real estate should include the address of the property, the legal description that is listed on the recorded documents, such as deeds or a declaration of homestead, the assessor’s parcel number, the type of property, information about any mineral and water rights, leases and rents, as well as information about any mortgages, liens, or any other encumbrances. Any available documents reflecting such information should be gathered.
Most commonly, the estate contains various bank accounts, such as checking, savings, or money market. It is important to gather information that includes the name of the bank, the type of the account, the account number, and the value of the account.
Some estates include securities accounts, securities, stocks, and bonds. The information regarding those assets should be gathered and organized by brokers or companies and the account numbers or certificate numbers, along with the number of stocks, amounts, and values, as well as the actual certificates.
When there are vehicles, boats, motor homes, or mobile homes in the estate, then the year, make, and model, as well as the name on the title, should be collected along with the actual title document.
Business interests are oftentimes part of the estate. Therefore, information regarding the name and location of the business, the type of business entity (i.e., partnership, corporation, limited liability company, sole proprietorship), tax status, shares or portion of the interest owned by the decedent, and any assets and liabilities of the business entity should be collected along with the licenses, operating agreements, and any other documents related to the business that address its succession and restriction, if any, on transfer of the business to another entity or person.
If life insurance is part of the estate, the name and address of the insurance company, the policy number, the name of the insured, and the owner of the policy, as well as the names of beneficiaries, if known, should be gathered. If there is no named beneficiary, the policy is likely payable to the estate of the deceased.
Finally, the information regarding retirement assets such as IRAs, 401ks, etc., should be gathered. If there are benefits to be passed on and there are no named beneficiaries, the asset will be payable to the estate.
There might be other assets such as receivables from promissory notes or judgments, royalties, timeshares, intellectual property rights, collections, or digital assets. As much detail as possible should be gathered regarding every asset.
The complete inventory will provide an estimate of the value of the estate, which, in turn, determines the type of probate proceeding. Consequently, it is important to have an accurate and thorough accounting of all of the estate’s property and assets.
Natalia Vander Laan is a Minden attorney
