1. P LANNING YOUR ( SMALL ) ESTATE IN N EVADA

2. Goals Prepare for Medical Issues that Impair or Incapacitate You Transfer Property to Avoid or Minimize Probate Understand the differences between Wills and Trusts.

3. PART I: ADVANCE DIRECTIVES

4. KINDS OF DIRECTIVES Durable Health Care Power of Attorney (Living Will) Durable Power of Attorney for Finances Health Care Declaration Trust or Living Trust (not covered)

5. Part I(A): Durable Power of Attorney for Health Care Principal (you) nominate agent (others) to make health care decisions if you are incapacitated. Review statutory form and paragraph 6 (statement of desires). Form must be signed by you and your signature must be notarized (and acknowledged) or witnessed by two adults who know you personally. Neither of the witnesses may be: (a) A provider or employee of provider of health care; (b) An operator or employee of a health care facility; or (c) The agent. At least one of the witnesses must be a person who is: (a) Not related to you by blood, marriage or adoption; and (b) To the best of the witnesses’ knowledge, not entitled to any part of the your estate upon death.

6. Part I(B): Durable Power of Attorney for Finances NRS Chapter 162A – “Principal”(you), “Agent” – The Power to deal with Real and Personal Property Execution - NRS 162A.220: – 1. A power of attorney must be signed by the principal (you) or, in the principal’s conscious presence, by another individual directed by the principal to sign the principal’s name on the power of attorney. A signature on a power of attorney is presumed to be genuine if the principal acknowledges the signature before a notary public or other individual authorized by law to take acknowledgments. – 2. If the principal resides in a hospital, assisted living facility or facility for skilled nursing at the time of execution of the power of attorney, a certification of competency of the principal from a physician, psychologist or psychiatrist must be attached to the power of attorney. Terminates at Death of Principal or Revocation Statutory Form: NRS 162A.620

7. Part I(B): Refusal to Accept Generally, a properly executed Power of Attorney for Finances must be accepted or a certification, translation, or opinion of counsel can be requested. NRS 162A.370(1)(a). You can refuse to accept Power of Attorney for Finances if it is not properly executed, acceptance would violate federal law, the certification/ translation/opinion is refused, or you have reason to believe the power is not valid or the principal is being abused or exploited. NRS 162A.370(2).

8. Part I(C): Health Care Declaration Provides Instructions to Health Care Providers and to Agent concerning wishes about life-saving treatment for terminally ill patients. Form provided by NRS 449.610

9. Living Will “Lockbox” Provides access to advance health care directives to: – Agent – Health Care Providers It’s FREE! An Advance Directive should also be shared and available to family members. http://nvsos.gov/index.aspx?page=214

10. PART 1: Burial Affidavit Burial Affidavit NRS 451.024(7). A person 18 years of age or older wishing to authorize the burial of his or her human remains may execute an affidavit before a notary public in substantially the following form (above)

11. PART 1: Cremation Affidavit Cremation Affidavit NRS 451.650(5). A person 18 years of age or older wishing to authorize the cremation of his or her human remains may execute an affidavit before a notary public in substantially the following form (above)

12. Part II: Avoiding Will and Probate Real Property Deed Upon Death – Allows title to real property to transfer to another person after death of owner, simply by filing certificate of death with county recorder Must file affidavit of death of grantor affidavit Car title upon death – Form with DMV Form with DMV Bank Account – POD POD Life Insurance and mutual funds – Name beneficiary

13. PART II: WILLS

14. Part II: Wills A “Will” is a document describing how you want your property left at death to be distributed.“Will” NRS 133.020 Sound mind; age. Every person of sound mind, over the age of 18 years, may, by last will, dispose of all his or her estate, real and personal, the same being chargeable with the payment of the testator’s debts. NRS 133.040 Valid wills: Requirements of writing, subscription, witnesses and attestation. No will executed in this State, except such electronic wills or holographic wills as are mentioned in this chapter, is valid unless it is in writing and signed by the testator, or by an attending person at the testator’s express direction, and attested by at least two competent witnesses who subscribe their names to the will in the presence of the testator.

15. Parts of a will Declaration and Revocation of Prior Wills Nomination of Executor/Executrix Dispositive provisions: Specific Bequests Dispositive provisions: Residuary Bequests Appointment of Guardian for Children Signature Witnesses and Self-Proving Affidavits of Witnesses

16. Part II: Wills Witnesses: Self-Proving Declaration or Affidavit NRS 133.050 Attesting witnesses may sign self-proving declarations or affidavits to be attached to will. Declaration does not require notary. Language Needed: Affidavit: Then and there personally appeared................ and................., who, being duly sworn, depose and say: Or Declaration: Under penalty of perjury pursuant to the law of the State of Nevada, the undersigned,.................... and...................., declare that the following is true of their own knowledge: Required for both Affidavit and Declaration: That they witnessed the execution of the foregoing will of the testator,........................; that the testator subscribed the will and declared it to be his or her last will and testament in their presence; that they thereafter subscribed the will as witnesses in the presence of the testator and in the presence of each other and at the request of the testator; and that the testator at the time of the execution of the will appeared to them to be of full age and of sound mind and memory.

17. Who should have a will? Persons who have legal “capacity.” Persons with total assets less than $5.43 million at death (estate tax/return) and more than $25,000/$100,000 if property going to spouse (and no opportunity to transfer property outside probate). Persons who have special wishes or requirements for their property after death. Persons who have special wishes or requirements for their minor children

18. What property passes by will? Any Property listed in the will not otherwise disposed of Real Property Personal Property (tangible and intangible) Any property or claims to property left at death

19. What does NOT pass by will? Life Insurance Policies with Specified Beneficiaries Accounts with “Pay on Death” Designation Property Held “With Right of Survivorship” ½ of Community Property Property Left to Ex-Spouses Property Given Away Before Death Property Not Included in the Will Funeral Directions Usually NOT part of will

20. Part II: WILLS What to do with will once executed – Before Death Notify Heirs Store Safely Update as needed – After Death Must file with district court clerk within 30 days of death Never file before death, never record

21. Holographic wills NRS 133.090 Holographic will. 1. A holographic will is a will in which the signature, date and material provisions are written by the hand of the testator, whether or not it is witnessed or notarized. It is subject to no other form, and may be made in or out of this State. 2. Every person of sound mind over the age of 18 years may, by last holographic will, dispose of all of the estate, real or personal, but the estate is chargeable with the payment of the testator’s debts. 3. Such wills are valid and have the same force and effect as if formally executed. NRS 133.100 Nuncupative or oral will invalid. A nuncupative or oral will is not valid.

22. PART III: TRUSTS

23. Part III: Trusts Differences between will and trust: – Trusts do NOT go to Probate Court – No inventory, petitions for distribution, etc. – Costs (up front v. after demise) – Trusts Require “maintenance”

24. PART IV: INTESTATE SUCCESSION

25. What Happens if there is no will/Trust? “Intestate Succession” Administrator appointed Much the same as if there were a will Property distributed to spouse and “heirs”

26. Part IV: intestate succession in nevada NRS 134.010 Vesting upon death of spouse; applicability of chapter only to separate property. If a decedent leaves a surviving spouse: 1. Community property with right of survivorship vests or transfers in accordance with the right of survivorship; 2. All other community property transfers as provided in NRS 123.250; andNRS 123.250 3. The provisions of this chapter apply only to the separate property of the decedent. NRS 123.250 Ownership of survivor upon death of spouse. 1. Except as otherwise provided [...], upon the death of either husband or wife: (a) An undivided one half interest in the community property is the property of the surviving spouse as his or her sole separate property and the remainder is the only portion subject to administration under the provisions of title 12 of NRS.

27. Part IV: intestate succession in nevada Surviving spouse and issue. NRS 134.040 1 child or surviving issue of child: Spouse 50% and Issue/Child) 50% > 1 child or surviving issue of children: Spouse 33% and 67% divided by number of surviving children or issue per stirpes Surviving spouse and no issue; no surviving spouse or issue but parent. NRS 134.050 Spouse 50%, Remaining Parent 50% if one living and 25% if both living No Parents: Spouse 50% and 50% divided among brothers and sisters of decedent. No Spouse/No Issue: Remain Parent 100% if one living and 50% if both living. No Issue/No Parents/No Siblings/No children of issue: Spouse gets 100% of separate property and community property No issue, surviving spouse or parent but sibling. NRS 134.060 No issue, surviving spouse, or father or mother: 100% dividing by number of siblings or siblings issue per stirpes. ●No issue, surviving spouse or immediate family. NRS 134.070 No issue, surviving spouse, father or mother, and no brother or sister living at time of death: 100% to next of kin in equal degree, except that if there are two or more collateral kindred in equal degree, but claiming through different ancestors, those who claim through the nearest ancestors are preferred to those who claim through ancestors more remote.

28. Part IV: intestate succession in nevada NRS 134.120 Escheat. If the decedent leaves no surviving spouse or kindred, the estate escheats to the State for educational purposes.

29. Part V: Valuation of estates Value of EstateEstate Administration Procedure < $100,00 (with no real property in NV) for spouse and $25,000 for anyone else Affidavit of Entitlement < $100,000Set Aside < $300,000Summary Administration > $300,000Full Administration A. “Value of Estate”: 1. Date of Death Valuation 2. Subject Property: a. Real Property in Nevada b. Personal Property Wherever Located

30. Part VIII: Summary administration NRS 145.040 Conditions for ordering summary administration. If it is made to appear to the court that the gross value of the estate, after deducting any encumbrances, does not exceed $300,000, the court may, if deemed advisable considering the nature, character and obligations of the estate, enter an order for a summary administration of the estate. NRS 145.010... Upon the granting of summary administration, all regular proceedings and further notices required by this title are waived, except for the notices required by NRS 144.010, 145.060, 145.070 and 145.075.NRS 144.010145.060145.070145.075

31. PART IX: ETHICAL ISSUE: FRAUD, DURESS and UNDUE INFLUENCE Void Transfer (NRS 155.097): Except if certificate of independent review obtained, a transfer is presumed to be void if the transfer is to: (a) The person who drafted the transfer instrument; (b) A caregiver of the transferor who is a dependent adult; (c) A person who materially participated in formulating the dispositive provisions of the transfer instrument or paid for the drafting of the transfer instrument; or (d) A person who is related to, affiliated with or subordinate to any person described in paragraph (a), (b) or (c). Applies to inter vivos or testamentary transfer Presumption rebuttal by clear and convincing evidence

32. PART IX: “Caregiver” NRS 155.0935. “Caregiver” means a person who provides health or social services to a dependent adult for remuneration other than a donative transfer pursuant to this chapter or the reimbursement of expenses.

33. PART IX: “Certificate of Independent Review” NRS 155.0975 Exceptions to presumption that certain transfers are void does not apply: 1.To the spouse of the transferor; 2.If transferee is an heir of the testator and whose combined share is not greater than intestate share (this includes non-probate transfers). 3.Except as otherwise provided in this subsection, if the court determines, upon clear and convincing evidence, that the transfer was not the product of fraud, duress or undue influence. The determination of the court pursuant to this subsection must not be based solely upon the testimony of a person described in subsection 2 of NRS 155.097.NRS 155.097 4.Transfers less than $3,000 per year (during life) and $3,000 total after death; 5.If the transfer instrument is reviewed by an independent attorney who : (a) Counsels the transferor about the nature and consequences of the intended transfer; (b) Attempts to determine if the intended consequence is the result of fraud, duress or undue influence; and (c) Signs and delivers to the transferor an original certificate of that review in substantially the following form:the following form:

34. Statutory Form CERTIFICATE OF INDEPENDENT REVIEW I,.............................. (attorney’s name), have reviewed.............................. (name of transfer instrument) and have counseled my client,.............................. (name of client), on the nature and consequences of the transfer or transfers of property to.............................. (name of transferee) contained in the transfer instrument. I am disassociated from the interest of the transferee to the extent that I am in a position to advise my client independently, impartially and confidentially as to the consequences of the transfer. On the basis of this counsel, I conclude that the transfer or transfers of property in the transfer instrument that otherwise might be invalid pursuant to NRS 155.097 are valid because the transfer or transfers are not the product of fraud, duress or undue influence.NRS 155.097 (Name of Attorney) (Date)

35. Thank you! The Remainder of the Time is for Questions