Trust includes home, but not bank accounts (under $25k - NV)

[chrsmsn74]

Nevada

Hello - hoping to find some information here. Finding answers online has proved more difficult than expected.

In short, I'm the trustee of my grandmother's trust. She passed March 19, with 5 children named in her trust. She decided to leave her house to one child, who was her live-in caregiver for the last year of her life. He trust designates all other assets be equally divided into 4 parts for her other 4 children (who happen to be my aunts/uncles).
She currently has 2 bank accounts with balances both under $20k. The local bank here in NV informed me that after 40 days, they can release all the funds to me directly with a Small Estate Affidavit and original Death Certificate. When looking at this form (https://www.nevadatreasurer.gov/uploadedFiles/treasurer.nv.gov/content/Unclaimed_Property/Forms/Claimant/UP-45_Small_Estate_Affadavit-Interactive.pdf), section 3 states:

That the gross value of the decedent’s property in this State, except amounts due the decedent for services in the Armed Forces of the United States, does not exceed $25,000, and that the property does not include any real property nor interest therein, nor mortgage or lien thereon;

This becomes confusing, as the property does include real property, valued at approximately $350k. As this is already assigned in the trust, can I use the Small Estate Affidavit to manage her bank accounts outside of the trust? If so, can this avoid probate? Just trying to make sure I distribute the remaining assets to her other children, as intended.

Thank you!

CM - Nevada

 

[doucar]

Yes, the house in the trust is not part of her estate. She did not own the house, the trust did. If the child who inherited the house agrees, the bank accounts can be divided 4 ways, otherwise, intestate succession (no will) would require it to be divided 5 ways.

 

[chrsmsn74]

Yes, the house in the trust is not part of her estate. She did not own the house, the trust did. If the child who inherited the house agrees, the bank accounts can be divided 4 ways, otherwise, intestate succession (no will) would require it to be divided 5 ways.

That makes sense. "The Trust" is then an independent ownership. Her property under her name should consist of her banks, automobile, jewelry, coins, etc.

So as defined in her Last Will and testament, I have been nominated as her Personal Representative and therefore, the following should empower me to access these other accounts and her remaining property:

"My Personal Representative may perform every act resonably necessary to administoer my estate and trust established undery my will. In addition to this general grant of powers, my Personal Representative is specifically authorized to:...
...Distribute assets of my estate in cash or in kind, or partly in each at fair market value on the date of distribution..."

This helps a great deal. Thank you again.

 

[doucar]

So there was a will as well as a trust?

 

[zddoodah]

I'm the trustee of my grandmother's trust. She passed March 19, with 5 children named in her trust.

I assume her five children are named as beneficiaries and that one of the five is your mother or father. Also, were you trustee before she died, or did you only become trustee as a result of her death?

This becomes confusing, as the property does include real property, valued at approximately $350k. As this is already assigned in the trust, can I use the Small Estate Affidavit to manage her bank accounts outside of the trust?

Since the house is titled in the name of the trust, it is not included in her estate for purposes of the small estate affidavit. However, you wrote that both "bank accounts [have] balances ... under $20k." Is the total of the two accounts $25k or less? If, for example, one account has $17k and the other has $12k, you've got a total in excess of $25k and could not use the small estate process.

Also (and this is extremely important), do the accounts have designated pay-on-death beneficiaries? If so, then the money belongs to the designated beneficiary(ies) and isn't part of the estate. Ideally, she should have designated the trust as the beneficiary.

I strongly encourage you to retain an attorney to assist you in your role as trustee of the trust. You will need to give notice to creditors and do other things that probably aren't intuitive. If you mess things up, you could incur personal liability.

 

[chrsmsn74]

I assume her five children are named as beneficiaries and that one of the five is your mother or father. Also, were you trustee before she died, or did you only become trustee as a result of her death?




Since the house is titled in the name of the trust, it is not included in her estate for purposes of the small estate affidavit. However, you wrote that both "bank accounts [have] balances ... under $20k." Is the total of the two accounts $25k or less? If, for example, one account has $17k and the other has $12k, you've got a total in excess of $25k and could not use the small estate process.

Also (and this is extremely important), do the accounts have designated pay-on-death beneficiaries? If so, then the money belongs to the designated beneficiary(ies) and isn't part of the estate. Ideally, she should have designated the trust as the beneficiary.

I strongly encourage you to retain an attorney to assist you in your role as trustee of the trust. You will need to give notice to creditors and do other things that probably aren't intuitive. If you mess things up, you could incur personal liability.

I was assigned as the first Successor Trustee to server as successor Trustee after death.

Both bank accounts should not exceed $25k in total. NV law states under $25k for Small Estate, and IL (other account) states under $100k for Small Estate. She died in NV, so I would imagine that law presides.

I will check to see if either account has identified any beneficiaries, but so far, both bank representatives have advised me to submit a Small Estate Affidavit, copy of Death Certificate, copy of Trust and Last Will and Testament, and a copy of my ID for identification purposes. I will know more when I get to that state.

I have already sent notarized Affadavit of Successor Trustee forms with true and complete copies of the trust and will to all 5 of her beneficiaries (her children, one is my mother). NV revised statues specifically called out inclusion of the following notice in bold face 12pt font:

NOTICE: "You may not bring an action to contest the trust more than 120 days from the date this notice id provided to you."

Those notices were sent USPS priority mail, signature and tracking required to be thorough.

Then only known creditors at the time of death included a Visa associated with one of the Banks she holds an account with. That bank representative stated that receipt of the Small Estate Affidavit would ensure notification to that creditor. She also has a Solar Loan associated with the house that I will notify and request instructions to transfer to the beneficiary of the home (mother).

As this estate includes an old car in disrepair, some collectible coins and jewelry, and these 2 accounts, I'm trying to manage this administration without incurring additional fees. Her trust attorney happily quoted me $650/hour with 15 hours to just prepare paperwork. I don't feel that would be justly serving the beneficiaries.

I do have an alternate law firm contact in queue if any issues arise.

Nevada also provides some free legal resources which I've been using to research and attempt to stay on track.

 

[chrsmsn74]

So there was a will as well as a trust?

Yes, there is a section within the Trust titled "Last Will and Testament of [First Name] [Last Name]

Within that section is an article titled 'Distribution of My Property"

This section begins with Pour-Over to my Revocable Living Trust and states:

"I give all of my probate estate, exluding any property over which I have a power of appointment, after payment of expenses and taxes that are paid under this will, to the then-acting Trustee of the [TRUST NAME] [DATE], and executed before this will, to be added to the property of that trust. I direct that Trustee administer the property as privided in the trust agreement and any amendments prior to my death."

Therein is where I'm named Personal Representative, Powers Granted by State Law, Adminstrative Provisions, Taxes Claims and Expenses, General Provisions, etc.

The Distribution of the house and assets to beneficiaries (5 children) are defined in the actual Trust in a separate article.

 

[Taxing Matters]

Yes, there is a section within the Trust titled "Last Will and Testament of [First Name] [Last Name]

That could be a problem. Ideally the trust and will should be separate documents. Confusion can result putting what was intended to be handled by the will in the trust document. I'd suggest having an estate attorney look that over and tell you if what was done is going to be an issue.

 

[zddoodah]

Both bank accounts should not exceed $25k in total. NV law states under $25k for Small Estate, and IL (other account) states under $100k for Small Estate. She died in NV, so I would imagine that law presides.

Hold on...regardless of how many accounts there are, is the total $25k or less? It sounds like you might be saying there are two accounts in Nevada with a total less than $25k and a third account in Illinois with significantly more. But I can't tell for sure.

 

[chrsmsn74]

Hold on...regardless of how many accounts there are, is the total $25k or less? It sounds like you might be saying there are two accounts in Nevada with a total less than $25k and a third account in Illinois with significantly more. But I can't tell for sure.

Both accounts, plus her personal assets (car, jewelry, coins, etc) should all be less than $25k total. I won't know until I am able to access the balance of her out-of-state account.

I'm speaking with a law firm today to review her trust. Hopefully they won't quote me $9750 for paperwork. I pursued the wrong career apparently. You guys/gals made the right move!

 

[chrsmsn74]

Here's a good question: Can I set up my own trust and put my home, bank accounts, investment account, and assets in there to protect any personal litigation that an Aunt or Uncle might try to pursue?

Looking out for my family here, as I'm only trying to live up to the committment my grandmother asked of me before she passed.

 

[zddoodah]

Can I set up my own trust and put my home, bank accounts, investment account, and assets in there to protect any personal litigation that an Aunt or Uncle might try to pursue?

In theory, yes, but the trust will need to be of a particular type, and you might not like the things that go with that. Consult with a local attorney.

 

[chrsmsn74]

In theory, yes, but the trust will need to be of a particular type, and you might not like the things that go with that. Consult with a local attorney.

In short, I've interpreted that it's best to hire an attorney. I will move forward with that. I'm concerned there is not enough value in the estate to pay for legal services in full.

 

[doucar]

If the house was not titled to the trust, the house is in the estate.