Reviewed by Roger Giuliani, The Giuliani Law Firm — Nevada Bar No. 5967
If a Nevada business owner dies without a will and without a succession plan, their ownership interest does not pass automatically to their family. Instead, that interest usually has to move through probate, the court-supervised process for settling an estate. Until a court appoints someone with legal authority to act, major business decisions can stall. The most reliable way to avoid this in Nevada is to place the business in a revocable living trust while you are alive, so a successor trustee can take over without going to court.
The short answer
- A business interest is an asset. With no will, Nevada’s intestate succession laws (NRS Chapter 134) decide who inherits it.
- That interest still generally has to pass through probate before your heirs can fully control the company.
- Nevada probate commonly takes several months to more than a year, which can freeze day-to-day decisions.
- A properly funded living trust lets your chosen successor step in immediately, with no court involvement.
Why your business does not automatically go to your family
Under Nevada law, a membership interest in an LLC is treated as personal property (NRS 86.351). Owning that interest is not the same as having the right to run the company. Unless the operating agreement says otherwise, a person who inherits a membership interest generally receives only the economic rights: the share of profits and distributions. They do not automatically gain the right to manage the business or vote as a member unless the other members approve or the operating agreement provides for it.
Importantly, the death of a member does not, by itself, dissolve a Nevada LLC (NRS 86.491). The company keeps existing. But if no one has clear authority to sign, hire, pay, or decide, the business can effectively be stuck while the estate is sorted out.
Corporations and partnerships follow their own rules, but the same core problem applies: without a plan, control has to be established through the courts.
What “no will” means for a Nevada business owner
When someone dies without a valid will, they die intestate. Nevada’s succession statutes (NRS Chapter 134) then decide who inherits the owner’s separate property, generally in this order: spouse and children first, then parents, then siblings, and outward to more distant relatives. Nevada is also a community property state, so a business built or acquired during a marriage may already be treated partly as the surviving spouse’s property, which affects what actually passes.
The key point: intestate law names who inherits, but it does not hand them the keys. The interest still has to be administered through probate before it can be retitled and controlled.
How probate puts a business “on pause”
Before anyone can act for the estate, a Nevada court has to appoint a personal representative (called an administrator when there is no will). That means filing a petition for probate in the district court for the county where the owner lived, such as the Eighth Judicial District Court in Clark County for Las Vegas residents. You can read an overview of the Nevada probate process for the full sequence of steps.
While that plays out:
- Bank accounts and signing authority may be frozen.
- Contracts, leases, payroll, and vendor decisions can stall.
- Notice must be published to creditors, who have a set window to file claims.
- The process commonly runs several months to over a year, depending on the estate’s size and any disputes.
A court-appointed personal representative can, in many cases, continue running an LLC or other business during administration, but only after appointment and subject to the operating agreement and Nevada law. That gap between the owner’s death and the appointment is where a business is most vulnerable. For the full picture, see the Nevada courts’ probate self-help center.
The fix: set up a trust before it is needed
The cleanest way to keep a Nevada business running after an owner’s death is to plan ahead. A revocable living trust is usually the central tool:
- You transfer your business interest into the trust while you are alive; this is called funding the trust.
- You name a successor trustee to take over the moment you die or become incapacitated.
- Because the trust (not you personally) holds the interest, there is nothing to probate, and your successor can act right away, without a court order.
Tools that work alongside a trust:
- Operating agreement succession terms that name who takes over and grant them management rights.
- A buy-sell agreement among co-owners that spells out what happens to a departing owner’s share.
- Current company records naming a successor manager or member.
Which combination is right depends on your entity type, whether you have co-owners, and your family situation. A Las Vegas estate planning attorney can match the right tools to your business.
A quick Las Vegas example
Maria owns a single-member LLC that runs a small Las Vegas business. She has no will and no trust. When she dies, her LLC interest passes under Nevada intestate law to her heirs, but none of them can legally manage the company until the court appoints a personal representative. For months, the business cannot reliably sign contracts or make payroll decisions. Had Maria placed the LLC in a revocable living trust and named her sister as successor trustee, her sister could have stepped in the same week, with no court involvement.
Illustrative example only; not based on a real client.
Frequently asked questions
Does a Nevada LLC automatically close when the owner dies?
No. Under NRS 86.491, an owner’s death does not by itself dissolve the LLC. The company continues, but someone must gain legal authority to manage it, which usually means probate if there was no trust or succession plan.
Who inherits a business in Nevada if there is no will?
Nevada’s intestate succession laws (NRS Chapter 134) decide. Generally the surviving spouse and children come first, followed by parents, siblings, and more distant relatives. Community property rules also affect a business built during a marriage.
Can my family just take over the business right away?
Usually not. Inheriting a membership interest often gives only economic rights, not the right to manage the company, unless the operating agreement says otherwise or the other members agree. Full control typically requires probate.
How long does business probate take in Nevada?
It varies. Many Nevada probate cases take several months to more than a year, longer if the estate is large or there are disputes. During that time, business decisions can stall.
How do I keep my business out of probate?
The most common approach is a properly funded revocable living trust, often combined with operating agreement succession terms or a buy-sell agreement. An estate planning attorney can build the plan around your specific business.
Talk with a Las Vegas probate and estate planning attorney
If you own a business in the Las Vegas area and want to make sure it keeps running for your family, The Giuliani Law Firm can help you put the right plan in place. Call (702) 388-9800 or contact us to talk through your options.
This article is general information about Nevada law and is not legal advice. For advice about your specific situation, consult a licensed Nevada attorney.
