SimplyTrust Knowledge Base

A: Joint tenancy is a legal arrangement in which each co-owner holds an equal share of a property or asset. Most importantly, it includes right of survivorship, meaning that when one owner passes, their share automatically transfers to the surviving owner(s) without going through probate.This arrangement can apply to real estate, bank accounts, investment accounts, and even vehicles in some states. It’s most commonly used between spouses but can be set up between any individuals.

A: A revocable trust avoids probate for assets you title into it. That's true in Illinois and Nevada—real estate, accounts, even vehicles can pass outside court. Privacy improves, and timelines shrink. However, there are differences between revocable trusts in the two states.

A: Illinois once had an inheritance tax, but it no longer applies to recent deaths. The Illinois Attorney General notes that an "Illinois Inheritance Tax Release" is needed only if a person died before January 1, 1983—a practical marker that the old tax is a thing of the past for modern estates.

A: The Illinois estate tax affects more people than many expect (although there's no inheritance tax). If your taxable estate tops {{ IL.tax.estate_exemption }}, the Illinois estate tax applies—whether you live in the state or simply own Illinois real estate. Rates are graduated, topping out at {{ IL.tax.estate_top_rate }}.

A: At its core, community property means earnings during marriage—and items bought with those earnings—are jointly owned. By contrast, assets owned before marriage, plus gifts and inheritances to one spouse, usually remain separate. Debts work similarly: many obligations taken on during marriage are shared. Rules vary by state, but that’s the broad frame.Nine states use community property as the default marital property system (as opposed to equitable property). They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Several states also offer opt-in community property—typically by creating a special trust or agreement. These include Alaska, Florida, Kentucky, South Dakota, and Tennessee. Opt-in frameworks can give couples certain community property benefits even in otherwise non-community jurisdictions.

A: Overall, both states deliver probate avoidance and privacy. Nevada stands out for having no state estate or inheritance tax, while Hawaii has no inheritance tax but overlays a separate estate tax that can matter for larger estates.

A: For years, many states relied on a federal "pick-up" system that shared federal estate tax revenue with the states. When Congress phased out that credit in the early 2000s, some states let their taxes lapse, while others rebuilt independent systems. Hawaii chose the estate-tax route. It enacted Chapter 236E to apply to residents' estates and to nonresidents with Hawaii-situs property for transfers after January 25, 2012. The state did not add an inheritance tax. Today, six states impose inheritance taxes, and Hawaii isn't one of them.

A: For decades, most states didn't run standalone estate taxes. Instead, they used a "pick-up" tax that matched a federal credit; the state simply "picked up" part of the federal tax bill. When Congress began phasing out that credit in 2001, pick-up taxes faded.

A: An inheritance tax is paid by the beneficiary and depends on the recipient's relationship to the person who passed. Only a handful of states still use it—currently Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania (Iowa ended its tax January 1, 2025). Nevada is not on that list.