Co-founder, Mark Krasner, CPA, Esq.* and partner, Abigail Stephenson, were recently invited to speak on Face the State, a weekly segment on the CBS affiliate designed to share with viewers important news in the state of Nevada.
Mark and Abbey discussed the importance of putting in place an estate plan, as an estimated six in 10 Americans do not have this critical documentation squared away. Nevadans, they deduce, hold steady with this trend.
You can watch the full segment below and read the key points discussed below the video.
The Emotional Barrier & The Reality
- Confronting Mortality: The main reason people avoid estate planning is the discomfort of facing their own mortality. However, overcoming this fear is necessary to protect family members and ensure a smooth transition.
- You Are Not Alone: Approximately 6 out of 10 people do not have an estate plan. Surprisingly, even many lawyers neglect to create their own plans, proving it is a universal human procrastination habit.
The Risks of “No Plan” (Intestacy)
- The Government’s Plan: If you do not create a plan, the state government has statutes that dictate who gets your assets. Most people would prefer to make these decisions themselves rather than leaving it to a legislative default.
- Probate is Public and Pricey: Without a plan, your family faces a court process that is often long, expensive, and public, adding stress during a time of grief.
- Asset Protection for Young Heirs: Without specific instructions (like a trust), an 18-year-old child could inherit a large sum of money immediately, potentially before they are mature enough to handle it responsibly.
Key Documents & Nevada Specifics
- More Than Just a Will: A complete estate plan typically includes a Will, a Revocable Living Trust, and Durable Powers of Attorney for both assets and healthcare.
- The $25,000 Threshold: In Nevada, if you have more than $25,000 in assets and no mechanism (like a trust) to transfer them, your estate must go through court administration.
- Guardianship of Children: For parents, a will is critical for naming guardians. Without one, family members (e.g., in-laws vs. siblings) may fight over who raises the children, leaving the final decision to a judge.
Cost vs. Benefit
- Investment vs. Expense: While a professional estate plan in their market might range from $2,000 to $5,000, this is significantly cheaper than the “multiples” families pay in legal fees and court costs to clean up an unplanned estate.
- A Gift to Loved Ones: Estate planning should be viewed as a gift to the people you leave behind, making a difficult time easier and more efficient for them.
Actionable First Steps
- Free Resources: In Nevada, statutory forms for Durable Power of Attorney (for healthcare and assets) are available for free online and can be filed in the Nevada Lockbox.
- Customization is Key: Costs and complexity vary based on goals, such as leaving money to specific charities or caring for a special needs child, which requires professional drafting rather than a “cookie-cutter” approach.
Hats off to an informative interview, Mark and Abbey!