Legal Question in Wills and Trusts in Nevada

Re: Before I die

Joint ownership of your home is very poor estate planning. What if one of your nephews is forced to declare bankruptcy? What if he goes through an ugly and bitter divorce? What if he gets sued and a judgment is entered against him that is not covered by insurance? In any of these circumstances, the house is HIS property, too, and potentially can be taken away by the bankruptcy trustee (for the creditors), by an ex-wife, or by a judgment creditor -- despite the fact that it is also your and your other nephew's property, too. Of course, creative titling and homesteading will protect some interest in some situations, but this is a risky way to ensure it is passed on as you intend.

As an alternative you might consider a way Nevada law now allows for a deed to real property to be held. You can hold title in your name with an automatic TOD (transfer on death) provision leaving the home to your nephews. They (and their creditors) would have no claim so long as you are alive, and your home would be protected for your use through your final days. This is similar to preserving a "life estate" measured by your life and leaving the remainder to your intended beneficiaries, but Nevada now allows for it to be directly on the face of the deed. It remains revocable during your life, too, should you change your mind while you still are mentally competent.

As for your consumer debts (credit cards), upon your death the creditors will demand their share of whatever assets you have in your estate to settle what is owed to them. They will have superior rights to your intended beneficiaries to the "few bucks" you may have remaining at that time. Banks don't so easily forgive all debts of a customer who passes away owning assets from which they might collect.

You need to consult an experienced estate planning attorney to discuss all options available to you in this important area. You may well find that the most obvious solution is not always the best or safest to ensure your wishes are honored.

Re: Before I die

If you put the house into their names, and if there is an increase in value of the house from when you purchased it, they may have to pay a great deal in taxes they would not have to pay if left it in your name and passed it by will or trust. There may also be property tax ramifications.