Assembly Bill No. 292

Assembly Bill No. 292-Assemblymen Ohrenschall, de Braga, Buckley, Koivisto, Manendo, Anderson, Herrera, Segerblom, Perkins, Sandoval, Berman, Amodei, Marvel, Humke, Gustavson, Von Tobel, Goldwater, Arberry, Freeman, Bache, Lambert, Parks, Cegavske, Braunlin, Lee, Collins, Mortenson, Chowning, Williams, Neighbors, Tiffany, Hickey, Evans, Krenzer, Nolan, Price, Dini and Giunchigliani

March 20, 1997
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Referred to Committee on Judiciary

SUMMARY--Requires prompt closing of estates. (BDR 12-749)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to the estates of decedents; setting a limit for their closing; providing exceptions; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 Chapter 143 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in this section, an executor or administrator shall close an estate within 18 months after his appointment.
2. If a claim against the estate is in litigation or the amount of federal estate tax has not been determined, the court, upon petition of a devisee, legatee or heir, shall order that a certain amount of money, or certain other assets, be retained by the executor or administrator to satisfy the claim or tax, and the executor or administrator shall distribute the remainder of the estate.
3. If a contest of the will or a proceeding to determine heirship is pending, the court which appointed the executor or administrator:
(a) Shall order that a certain amount of money, or certain other assets, be retained and the remainder of the estate distributed; or
(b) May, for good cause shown, order that the entire distributable estate be retained pending disposition of the contest or proceeding.
Sec. 2 NRS 143.035 is hereby amended to read as follows:
143.035 1. [The] An executor or administrator shall use reasonable diligence in performing his duties and in pursuing the administration of the estate.
2. [Every] An executor or administrator in charge of an estate that has not been closed shall:
(a) Within 6 months after his appointment, where no federal estate tax return is required to be filed for the estate; or
(b) Within [18] 15 months after his appointment, where a federal estate tax return is required to be filed for the estate,
file with the district court a report explaining why the estate has not been closed.
3. Upon receiving the report, the court clerk shall set a time and place for a hearing of the report, not later than 30 days nor sooner than 15 days after receiving it. At least 10 days before the hearing, the executor or administrator shall send a copy of the report and shall give notice of the hearing, by registered or certified mail, to each person whose interest is affected as an heir, devisee or legatee.
4. At the hearing, the court shall determine whether or not the executor or administrator has used reasonable diligence in his administration and if he has not, the court may:
(a) Subject to the provisions of section 1 of this act:
(1) Prescribe the time within which the estate [shall] must be closed;
[(b)] or
(2) Allow the executor or administrator additional time for closing and order a subsequent report; or
[(c) Suspend or revoke]
(b) Revoke the letters of the executor or administrator [.] , appoint a successor and prescribe a reasonable time within which the successor shall close the estate.
Sec. 3 This act applies to executors and administrators appointed before October 1, 1997, but section 1 of this act does not require the closing of an estate before January 1, 1998.