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Posted on November 15, 2022 in asset protection,estate planning
Nevada Revised Statute (NRS) Chapter 115 is the law that establishes the right to homestead your primary residence.
At present, a homeowner can protect up to $605,000 in equity, which the statute defines as the amount that is cletermined by subtracting from the fair market value of the property the value of any liens excepted from the homestead exemption pursuant to subsection 3 ofNRS 115.010 or NRS 115.090. Those exceptions generally cover the mortgage undertaken to purchase the home, any bills incurred to improve the home which subject the property to mechanic’s liens, and homeowner’s association (HOA) restrictions.
There is no time specified for when a homestead may be declared, but as a general rule, it is best to file the declaration with the recorder’s office before the homeowner thinks they may be facing a lawsuit.
If a home is held in the name of a living trust, Nevada still allows the home to be protected under the homestead law. (NRS 115.020(5).
Unfortunately, the homestead law does not apply to investment/rental property. The exemption generally only applies to homes in which the person claiming the exemption actually resides. Talk to an estate planning attorney Las Vegas, Nevada.
