Comparing Estate Planning Laws Across Nevada, California, and Utah
Estate planning is an essential step in preparing for the future. It ensures that your wishes are carried out and your loved ones are taken care of. However, the laws governing estate planning aren’t uniform across the United States, and even neighboring states can have vastly different regulations. Utah, California, and Nevada each have their own unique approaches to estate planning, which means that whether you’re living in Salt Lake City, Los Angeles, or Las Vegas, you’ll want to understand the differences before crafting a plan that works for you.
At John Park Law, our estate planning attorneys are licensed in Nevada, California and Utah, and can assist you in developing the right plan for you – no matter which state you live in. To help you make a more informed decision, we’ve compared the estate planning laws across all three states.
Utah Estate Planning
When it comes to estate planning, Utah tends to lean towards simplicity. The state’s estate planning laws are fairly straightforward, making it a relatively easy place to establish a will or trust.
- Probate Laws in Utah. Utah’s probate process is often more straightforward than in some other states. Probate is the legal process by which a person’s estate is administered, and assets are distributed after death. Utah offers something called informal probate, which allows a quicker and less expensive process as long as no one contests the will. This can be especially beneficial for families looking to avoid drawn-out court proceedings.
Additionally, Utah has a “small estate affidavit” process for estates under $100,000, meaning you can bypass probate entirely if the estate’s value falls below this threshold.
- Privacy in Utah. One of the standout advantages of Utah’s estate planning laws is privacy. In Utah, if you establish a trust, your assets don’t have to go through a public probate court. This means your estate plan stays private—your finances and who gets what won’t be available for public scrutiny. If keeping your personal matters confidential is a priority, Utah has favorable laws in this respect.
Utah also enacted asset protection laws by utilizing irrevocable trusts that may be beneficial to your overall estate planning strategy. Utah’s asset protection laws provide another option to Utah residents looking to protect their assets, in addition to just avoiding probate.
California Estate Planning
California has some of the most detailed and intricate estate planning laws. While this thoroughness can provide more robust protections, it can also lead to a more challenging process for those without expert guidance.
- Community Property Laws. One unique feature of California is its community property laws. If you’re married, California law presumes that any assets you and your spouse acquire during the marriage are community property, meaning they’re owned equally by both parties. This can simplify things if both spouses agree on how to divide assets, but it can also complicate matters if there’s disagreement.
- California’s Probate Process. California’s probate process is notorious for being slow and expensive. Probate fees in California are based on a percentage of the estate’s value, and legal costs can skyrocket in more complex cases. This makes it particularly important to have a well-drafted estate plan, ideally one that uses a living trust to avoid probate altogether.
Another California-specific concern is the state’s estate taxes. While California doesn’t have its own inheritance or estate tax, its high property values can push estates into federal estate tax territory, which applies to estates valued over a certain amount (currently $13.61 million as of 2024). Careful planning is needed if your estate is near this threshold.
Nevada Estate Planning
Nevada often appeals to those prioritizing asset protection and tax advantages in their estate planning.
- Asset Protection. Nevada’s estate planning laws offer some of the best asset protection in the country. If protecting your wealth from creditors is a priority, Nevada might be the place to focus your estate planning efforts. The state allows for self-settled spendthrift trusts, which provide robust protection for your assets from creditors, even if you’re still alive and benefiting from those assets. This is a significant advantage for business owners or those concerned about potential lawsuits.
- Probate and Taxes in Nevada, Like Utah, Nevada also offers simplified probate procedures for smaller estates. The state’s small estate affidavit process can be used for estates valued under $100,000 for a surviving spouse and under $25,000 for any other heir, avoiding the full probate process.
Additionally, Nevada doesn’t have an estate tax or inheritance tax, which makes it an appealing option for high-net-worth individuals concerned about taxation. The absence of state taxes on your estate means more of your wealth will go to your heirs rather than to the government.
Why You Need a Lawyer Familiar with All Three States
Navigating estate planning across multiple states can be tricky, especially if you own property or have financial interests in more than one state. Each of these states—Utah, California, and Nevada—has different approaches to probate, asset protection, and estate taxes, which means a one-size-fits-all solution won’t work.
At John Park Law, our attorneys can assist you when you own property in multiple states. For example, perhaps you live in Nevada but own a vacation home in Utah and have a business in California. If your estate plan only considers Nevada law, you might run into legal complications down the road. We can make sure you’re covered no matter where your assets are located.
Our estate planning lawyers are also familiar with estate tax laws in all three states and can help you craft a plan that minimizes your tax burden, potentially saving your heirs a substantial amount of money.
Contact John Park Law Today
Estate planning is about more than just writing a will—it’s about understanding the laws in each state where you have assets and ensuring your plan is robust enough to protect your wealth, minimize taxes, and avoid probate. Whether you’re drawn to Utah’s privacy protections, California’s comprehensive regulations, or Nevada’s asset protection benefits, your estate plan should reflect the unique advantages of each state. Call our law firm today at 702-857-7879 or fill out our confidential case evaluation form online.
John Park is a highly experienced attorney in estate planning, probate, business law and guardianship to help people organize the elements of their lives through careful estate planning and asset protection measures.