Do You Need a Will If You Already Have a Trust in Nevada?
Trusts are one of the most effective tools available for avoiding probate, maintaining privacy, and providing a clear plan for managing and distributing assets. However, the one question that often comes up during estate plan reviews is “Now that I have a trust, do I still need a will?” The answer is yes. A trust and a will are designed to work together. While your trust may be the cornerstone of your estate plan, your will continues to serve important functions that help ensure your wishes are carried out properly.
Your Trust Is Only Effective for Assets It Owns
One of the biggest misconceptions about trusts is that simply signing the trust document automatically places all assets into the trust. Assets must be properly transferred into the name of the trust in order to receive the full benefits of trust-based planning. This process, known as “funding,” is what allows the trustee to control and manage those assets according to your wishes. Over the years, it is common for people to acquire new assets or make financial changes without realizing those assets may need to be coordinated with their trust.
If you purchase a new residence, vacation property, or investment property after creating your trust, the property may not automatically become part of the trust. Depending on how the property is titled, it could remain outside of your estate plan and potentially create complications after your death and result in additional fees. Reviewing newly acquired real estate helps ensure ownership is structured consistently with your overall planning goals.
Many individuals open checking accounts, savings accounts, money market accounts, or brokerage accounts years after establishing their trust. If these accounts are opened solely in an individual’s name, they will not be governed by the trust’s instructions. Regular reviews help identify newly opened accounts and determine whether ownership or beneficiary designations should be updated.
As your investment portfolio grows, new assets should to be coordinated with your trust. Stocks, bonds, mutual funds, and other non-retirement investment accounts are often overlooked during estate plan maintenance. Ensuring these assets are properly transferred into your trust can help simplify administration and reduce potential probate concerns.
Business ownership presents unique estate planning considerations. Whether you start a new company, acquire an ownership interest in an existing business, or become involved in a family enterprise, your estate plan should be reviewed to determine how those interests will be managed in the future and whether they should be integrated into your trust strategy. Membership interests and/or stock ownership should be reissued to you as trustee of your trust.
Sometimes assets that existed when the trust was created simply never completed the funding process. A deed may not have been recorded, an account may not have been transferred, or paperwork may have been left unfinished. These situations are more common than many people realize and are often discovered during routine estate plan reviews.
Why a Pour-Over Will Still Matters
Even with careful planning, assets are occasionally left outside of a trust. This is where a pour-over will becomes important. A pour-over will serves as a backup plan by directing assets that are not titled in the trust at the time of death into the trust for distribution according to the trust’s terms. This additional layer of protection helps ensure that overlooked assets are ultimately distributed according to your overall estate plan rather than being governed solely by Nevada law. While the goal is always to keep assets properly funded within the trust, a pour-over will provides valuable protection when life circumstances change or assets are unintentionally missed.
What Happens Without a Poor Over Will?
Consider a trust that was created but never paired with a pour-over will. If, for example, you own a piece of property that was never transferred into your trust, you may be surprised by the outcome. Assuming your spouse predeceased you, a probate proceeding may be required, and the property could be distributed in equal shares among your children.
Many times, this isn’t an issue. But what if you have three children and intentionally disinherited one of them? Or what if one of your children predeceased you and was survived by two minor children? In that case, your grandchildren would be entitled to their parent’s one-third share, which will ultimately be distributed to them when they turn 18! Simply put, a pour-over will helps avoid these types of unintended consequences by ensuring assets inadvertently left outside your trust are distributed according to your estate plan rather than Nevada’s default inheritance laws.
A Will Allows You to Nominate Guardians for Minor Children
For clients with young children, a will serves a critical purpose that a trust generally cannot accomplish. A will allows you to nominate the individuals you would want to serve as guardian of your minor children if both parents are unable to care for them.
When considering guardianship nominations, many parents evaluate factors such as Shared Values and Parenting Philosophy. Parents often prefer guardians who share similar beliefs, priorities, and approaches to raising children. Consistency can help provide stability during an already difficult transition. Although guardians are not expected to personally fund a child’s upbringing, selecting someone who is financially responsible can provide additional peace of mind.
Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.
Lee A. Drizin, Esq. is the founder of Drizin Law and has practiced in Las Vegas for over three decades. His work focuses on probate, estate planning, trusts, and guardianship, with particular experience handling contested probate and administration matters. A UNLV graduate with a Master of Laws in Taxation from Boston University, Lee has built his career helping Nevada families navigate some of the most difficult times in their lives.
