Why Your California Estate Plan Should Be Updated to Nevada Law After Moving
If you’ve recently moved from California to Nevada, congratulations on your new home in the Silver State! As you settle in and take care of moving-related tasks like updating your address and driver’s license, there’s one important item you want to pay attention to – your estate plan. Even if you had a comprehensive will, trust, and power of attorney documents drafted while living in California, now that you’re a Nevada resident, it’s crucial to have those documents reviewed and updated by an estate planning lawyer familiar with Nevada law.
While it’s true that your California estate planning documents are still legally valid in Nevada, there are significant differences between the two states when it comes to administering a trust after someone passes away. Failing to update your plan to conform with Nevada law could leave your loved ones dealing with a more lengthy, costly, and stressful administration process during an already difficult time.
The Trouble With a California Trust in Nevada
The primary issue with relying on a trust drafted in California after moving to Nevada is the differences in each state’s trust administration process. In California, administering a trust routinely takes a minimum of 12-18 months and involves substantial costs and complexities. Meanwhile, Nevada offers a far more streamlined and efficient trust administration that can typically be completed in 6 months or less.
One major factor in California’s lengthier process is the statutory requirement to provide formal notice to all trust beneficiaries, disinherited heirs, and even contingent beneficiaries. This notice allows the recipient to request a copy of the trust and challenge its terms in court. In Nevada, this formal notice is completely optional – you can choose whether to send it or not. If no notice is sent, it’s extremely difficult for someone to come out of the woodwork and contest the trust.
California also has a much longer timeframe for creditors to make claims against a trust. Under California law, creditors have a full year from the date of death to come forward, while Nevada cuts that time down to a mere 90 days from the date a notice is published in the newspaper.
The Advantages of Updating Your Plan
Given the notable differences between California and Nevada’s trust administration laws, there are some compelling reasons to take the time to meet with a Nevada estate planning attorney and update your plan to take advantage of Nevada’s more favorable policies. Let’s explore a few of the key benefits:
A Faster, More Efficient Process
The most obvious advantage of having a trust drafted in Nevada is that your heirs can wrap up the administration process much more quickly after you pass away. Rather than spending over a year dealing with California’s notice laws, your loved ones can likely finish the necessary tasks within 4-6 months, allowing them to move forward during a time of grief.
With a Nevada trust, you also have greater flexibility to help your family avoid some of the more tedious and stressful parts of settling an estate. If your trust doesn’t include real property in Nevada, your successor trustee will have greater options to quickly administer the trust and will not need to involve the court. Even if court involvement is necessary, the process is far less onerous in Nevada than in California in dealing with trust court.
Reduced Expenses
The shorter timeline and reduced administrative requirements also translate to lower costs for your estate. California’s protracted process and mandatory notices result in more billable hours for lawyers and additional court costs and filing fees. Administering a Nevada trust is simply more cost-effective across the board.
More Control and Privacy
Updating your estate plan to align with Nevada law puts you back in the driver’s seat when it comes to deciding what information to share about your estate. Since formal notice to beneficiaries and heirs is optional, you can choose to keep the terms of your trust private and limit the opportunity for someone to challenge your wishes.
Enhanced Creditor Protection
Nevada’s considerably shorter time window for creditors to make claims against your estate can be a major benefit for your loved ones. They’ll be able to distribute and receive assets much sooner without fearing a creditor popping up and demanding payment a year after your death.
The Silver State also boasts some of the strongest creditor protection laws in the country, including the Nevada Spendthrift Trust (NRS 166). When incorporated into your estate plan, this special type of irrevocable trust can safeguard assets from your beneficiaries’ creditors, lawsuits, and even divorce. It’s a powerful tool to preserve your wealth for future generations that simply doesn’t exist under California law.
Next Steps for New Nevadans
If you’ve recently relocated from California to Nevada or have resided in Nevada and have an existing California governed estate plan, it’s worth having your documents reviewed by a knowledgeable Nevada estate planning attorney.
Even better, you should work with an attorney admitted to practice in both Nevada and California. Many Nevada residents still own property in California, and it takes specialized knowledge of each state’s laws to create a plan that will work seamlessly across state lines. A qualified bi-state lawyer can help you navigate the complexities and tailor a solution to fit your unique situation.
Contact Our Nevada Estate Planning Law Firm
While it may be tempting to take a “if it ain’t broke, don’t fix it” approach to your California estate plan, the potential consequences of not updating your documents after a move to Nevada can be significant. Without revising your plan to conform with Nevada law, you risk leaving your family with a stressful, expensive, and time-consuming legal process while they are grieving.
At John Park Law, our experienced estate planning law firm has attorneys licensed to practice in both California and Nevada. We understand the complexities of each state’s laws and can help you create a plan that achieves your goals and protects your assets across state lines. Schedule a confidential case evaluation now by calling us at 702-857-7879.
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.