Assembly Bill No. 306

Assembly Bill No. 306-Assemblymen Lee, Parks, Tiffany, Koivisto, Hickey, Gustavson, Nolan, Anderson, Collins and Arberry

CHAPTER

418

AN ACT relating to property; making various changes concerning wills; making various changes concerning an inventory and appraisement or record of value of the estate of a deceased; making various changes concerning the summary administration of estates; making various changes concerning small estates; making various changes concerning the presentation and payment of claims; authorizing competent successors to agree to alter the interests or amounts to which they are entitled in any manner; authorizing a trustee or executor to distribute property and money in divided or undivided interests and on a pro rata or nonpro rata basis; making various other changes concerning the kind of notice required in a matter concerning the will or estate of a deceased person; increasing the limit on the amount of value of an estate for which an appeal may be taken from an order or decree setting aside the estate; and providing other matters properly relating thereto.

[Approved July 16, 1997]

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

Section 1. Chapter 133 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. A signature affixed to a self-proving affidavit attached to a will is considered a signature affixed to the will if necessary to prove the execution of the will.
Sec. 3. A specific devise passes subject to any mortgage existing on the date of death, without right of exoneration, regardless of a general directive in the will to pay debts.
Sec. 3.5. Chapter 143 of NRS is hereby amended by adding thereto a new section to read as follows:
1. On petition of any person who appears to have an interest in the estate, the court by temporary order may restrain a personal representative from performing specified acts of administration, disbursement or distribution, or exercising any powers or discharging any duties of his office, or make any other order to secure proper performance of his duty, if it appears to the court that the personal representative otherwise may take some action that would jeopardize unreasonably the interest of the petitioner or of some other interested person. A person with whom the personal representative may transact business may be made a party.
2. The matter must be set for hearing within 10 days after issuance of the temporary order unless the parties otherwise agree. Notice as the court directs must be given to the personal representative and his attorney of record, if any, and to any other party named defendant in the petition.
3. As used in this section:
(a) "Person" includes, without limitation, a government, governmental agency or political subdivision of a government.
(b) "Personal representative" includes, without limitation, an executor, an administrator, a successor personal representative, a special administrator and persons who perform substantially the same function under the law governing their status.
Sec. 4. Chapter 144 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The executor or administrator may engage a certified public accountant or other expert in valuation to ascertain the fair market value, as of the date of the death of the decedent, of the interest of the decedent in a corporation, partnership, limited-liability company or other association.
2. Any such certified public accountant or expert in valuation is entitled to a reasonable compensation for his services and may be paid the compensation by the executor or administrator out of the estate at any time after completion of the report of the valuation.
Sec. 5. NRS 144.030 is hereby amended to read as follows:
144.0301. Before proceeding to the execution of his duty, each appraiser , certified public accountant or expert in valuation shall [take and subscribe an oath, before any person authorized to administer oaths,] certify that he will truly, honestly and impartially appraise or value the property [which is exhibited to him or called to his attention] according to the best of his knowledge and ability. The [oath must be attached to the inventory.] certification must be contained in the appraisal or valuation or filed with the court.
2. He shall then proceed to appraise the property of the estate. Each [article or parcel] item with an assessed value of more than $100 must be set down separately with the value thereof in dollars and cents in figures opposite to each [article or parcel, respectively.] item.
3. Any appraiser , certified public accountant or expert in valuation who directly or indirectly purchases any property of an estate which he has appraised [,] or valued, without full disclosure to and approval by the court, is guilty of a misdemeanor. A sale made in violation of the provisions of this subsection is void.
Sec. 6. NRS 144.070 is hereby amended to read as follows:
144.070The [inventory must be signed by the appraiser or appraisers, and the] executor or administrator shall take and subscribe an oath, before any person authorized to administer oaths, that the inventory contains a true statement of all the estate of the deceased which has come to his possession or of which he has knowledge, and particularly of all money belonging to the deceased, and of all just claims of the deceased against the executor or administrator. The oath must be endorsed upon or annexed to the inventory.
Sec. 7. NRS 145.020 is hereby amended to read as follows:
145.020All proceedings taken under this chapter, whether or not the decedent left a will, [shall] must be originated by a verified petition for letters testamentary or letters of administration containing:
1. Jurisdictional information;
2. A [specific] description of [all of the decedent's property.
2.] the property of the decedent, including, without limitation, the character and estimated value of the property; and
3. A list of [all the liens and encumbrances of record at the date of his death.
3. An estimate of the value of the property.] each heir, next of kin, legatee and devisee of the decedent. This list must include, without limitation, the name, age, address and relationship to the decedent of any such person.
Sec. 8. NRS 145.040 is hereby amended to read as follows:
145.040When it is made to appear to the court [, by affidavit or otherwise,] that the gross value of the estate does not exceed [$100,000,] $200,000, the court may, if deemed advisable considering the nature and character of the estate and the obligations thereof, make an order for a summary administration of the estate.
Sec. 9. NRS 146.070 is hereby amended to read as follows:
146.0701. When a person dies leaving an estate, the gross value of which after deducting any encumbrances does not exceed [$25,000,] $50,000, and there is a surviving spouse or minor child or minor children of the deceased, the estate must not be administered upon, but the whole thereof, after directing such payments as may be deemed just, must be, by an order for that purpose, assigned and set apart for the support of the surviving spouse or minor children, or for the support of the minor child or minor children, if there is no surviving spouse. Even though there is a surviving spouse, the court may, after directing such payments, set aside the whole of the estate to the minor child or minor children, if it is in their best interests.
2. When there is no surviving spouse or minor child of the deceased and the gross value of a decedent's estate, after deducting any encumbrances, does not exceed [$25,000,] $50,000, upon good cause shown therefor, the judge may order that the estate must not be administered upon but the whole thereof must be assigned and set apart:
First: To the payment of funeral expenses, expenses of last illness, money owed to the department of human resources as a result of payment of benefits for Medicaid, and creditors, if there are any; and
Second: Any balance remaining to the claimant or claimants entitled thereto [.] pursuant to the will of the decedent, and if no will, pursuant to intestate succession.
3. All proceedings taken under this section, whether or not the decedent left a will, must not begin until at least 30 days after the death of the decedent and must be originated by a verified petition containing:
(a) A specific description of all of the decedent's property.
(b) A list of all the liens and encumbrances of record at the date of his death.
(c) An estimate of the value of the property.
(d) A statement of the debts of the decedent so far as known to the petitioner.
(e) The names, ages and residences of the decedent's heirs, devisees and
legatees.
The petition may include a prayer that if the court finds the gross value of the estate, less encumbrances, does not exceed [$25,000,] $50,000, the estate be set aside as provided in this section.
4. The petitioner shall give notice of the petition and hearing in the manner provided in NRS 155.010 to the decedent's heirs, devisees and legatees and to the state welfare [division of the department of human resources. The] administrator. If a complete copy of the petition is not enclosed with the notice, the notice must include a statement [that a prayer for setting aside the estate to the spouse, or minor child or minor children, as the case may be, is included in the petition.] setting forth to whom the estate is being set aside.
5. No court or clerk's fees may be charged for the filing of any petition in, or order of court thereon, or for any certified copy of the petition or order in an estate not exceeding $2,500 in value.
6. If the court finds that the gross value of the estate, less encumbrances, does not exceed the sum of [$25,000,] $50,000, the court may direct that the estate be distributed to the father or mother of any minor heir or legatee, with or without the filing of any bond, or may require that a general guardian be appointed and that the estate be distributed to the guardian, with or without bond as in the discretion of the court seems to be in the best interests of the minor. The court may direct the manner in which the money may be used for the benefit of the minor.
Sec. 10. NRS 146.080 is hereby amended to read as follows:
146.0801. When a decedent leaves no real property, nor interest therein nor lien thereon, in this state, and the gross value of the decedent's property in this state, over and above any amounts due to the decedent for services in the Armed Forces of the United States, does not exceed [$10,000, the surviving spouse, the children, lawful issue of deceased children, the parent, the brother or sister of the decedent, or the guardian of the estate of any minor or insane or incompetent person bearing that relationship to the decedent, if that] $20,000, a person who has a right to succeed to the property of the decedent [or] , a person who is the sole beneficiary under the last will and testament of the decedent [,] or the state welfare [division of the department of human resources,] administrator may, 40 days after the death of the decedent, without procuring letters of administration or awaiting the probate of the will, collect any money due the decedent, receive the property of the decedent, and have any evidences of interest, indebtedness or right transferred to him upon furnishing the person, representative, corporation, officer or body owing the money, having custody of the property or acting as registrar or transfer agent of the evidences of interest, indebtedness or right, with an affidavit showing the right of the affiant or affiants to receive the money or property or to have the evidences transferred.
2. An affidavit made pursuant to this section must state:
(a) The affiant's name and address, and that the affiant is entitled by law to succeed to the property claimed;
(b) That the decedent was a resident of Nevada at the time of his death;
(c) That the gross value of the decedent's property in this state, except amounts due to the decedent for services in the Armed Forces of the United States, does not exceed [$10,000,] $20,000, and that the property does not include any real property nor interest therein nor lien thereon;
(d) That at least 40 days have elapsed since the death of the decedent;
(e) That no application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction;
(f) That all debts of the decedent, including funeral and burial expenses and money owed to the department of human resources as a result of the payment of benefits for Medicaid have been paid or provided for;
(g) A description of the personal property and the portion claimed;
(h) That the affiant has given written notice, by personal service or by certified mail, identifying his claim and describing the property claimed, to every person whose right to succeed to the decedent's property is equal or superior to that of the affiant, and that at least [10] 14 days have elapsed since the notice was served or mailed; [and]
(i) That the affiant is personally entitled, or the department of human resources is entitled, to full payment or delivery of the property claimed or is entitled to payment or delivery on behalf of and with the written authority of all other successors who have an interest in the property [.] ; and
(j) That the affiant acknowledges that he understands that filing a false affidavit constitutes a felony in this state.
3. If the affiant:
(a) Submits an affidavit which does not meet the requirements of subsection 2 or which contains statements which are not entirely true, any money or property he receives is subject to all debts of the decedent.
(b) Fails to give notice to other successors as required by subsection 2, any money or property he receives is held by him in trust for all other successors who have an interest in the property.
4. A person who receives an affidavit containing the information required by subsection 2 is entitled to rely upon such information, and if he relies in good faith, he is immune from civil liability for actions based on that reliance.
5. Upon receiving proof of the death of the decedent and an affidavit containing the information required by this section:
(a) A transfer agent of any security shall change the registered ownership of the security claimed from the decedent to the person claiming to succeed to ownership of that security.
(b) A governmental agency required to issue certificates of ownership or registration to personal property shall issue a new certificate of ownership or registration to the person claiming to succeed to ownership of the property.
6. If any property of the estate not exceeding [$10,000] $20,000 is located in a state which requires an order of a court for the transfer of the property, or if it consists of stocks or bonds which must be transferred by an agent outside this state, any person qualified under the provisions of subsection 1 to have the stocks or bonds or other property transferred to him may do so by obtaining a court order directing the transfer. The person desiring the transfer must file a verified petition in a court of competent jurisdiction containing:
(a) A specific description of all of the property of the decedent.
(b) A list of all the liens and encumbrances of record at the date of the decedent's death.
(c) An estimate of the value of the property of the decedent.
(d) The names, ages and residences of the decedent's heirs and legatees.
(e) A prayer requesting the court to issue an order directing the transfer of the stocks or bonds or other property if the court finds the gross value of the estate does not exceed [$10,000.] $20,000.
If the court finds that the gross value of the estate does not exceed [$10,000] $20,000 and the person requesting the transfer is entitled to it, the court may issue an order directing the transfer.
Sec. 11. (Deleted by amendment.)
Sec. 12. NRS 147.090 is hereby amended to read as follows:
147.0901. No statute of limitations running on a cause of action belonging to a decedent which had not been barred as of the date of his death bars a cause of action surviving the death of the decedent sooner than 4 months after the death. A cause of action which, but for this section, would have been barred less than 4 months after death, is barred after 4 months, unless tolled.
2. A claim which is barred by the statute of limitations [shall] must not be allowed or approved by the executor or administrator, or by the judge. When a claim is presented to a judge for his allowance or approval, he may, in his discretion, examine the claimant and others on oath and hear any legal evidence touching the validity of the claim. No claim, which has been allowed, is affected by the statute of limitations, pending the administration of the estate.
Sec. 13. NRS 148.200 is hereby amended to read as follows:
148.200[1.] Personal property may be sold for cash, or upon a credit.
[2. If a sale is made upon a credit, not less than 25 percent of the purchase price shall be paid in cash at the time of sale. The executor or administrator shall take the note of the purchaser for the balance of the purchase money, with a pledge or chattel mortgage of the personal property sold, to secure the payment of the balance, or shall enter into a conditional sale contract under which title is retained until such balance is paid, the terms of the note and pledge or chattel mortgage or contract to be approved by the court at the time of confirmation of sale.]
Sec. 14. NRS 150.230 is hereby amended to read as follows:
150.2301. The executor or administrator shall, as soon as he has sufficient funds in his hands, upon receipt of a sworn statement of the amount due and without any formal action upon creditors' claims, pay the funeral expenses, the expenses of the last sickness, the allowance made to the family of the deceased, money owed to the department of human resources as a result of payment of benefits for Medicaid and wage claims to the extent of $600 of each employee of the decedent for work done or personal services rendered within 3 months before the death of the employer , [;] but he may retain in his hands the necessary expenses of administration.
2. He is not obliged to pay any other debt or any legacy until the payment is ordered by the court.
3. He may, before court approval or order, pay any of the decedent's debts amounting to [$100] $500 or less if:
(a) Claims for payment thereof are properly filed in the proceedings;
(b) The debts are justly due; and
(c) The estate is solvent.
In settling the account of the estate, the court shall allow any such payment if the conditions of paragraphs (a), (b) and (c) have been met . [; otherwise,] Otherwise, the executor or administrator is personally liable to any person sustaining loss or damage as a result of such payment.
4. Funeral expenses and expenses of a last sickness are debts payable out of the estate of the deceased spouse and must not be charged to the community share of a surviving spouse, whether or not the surviving spouse is financially able to pay such expenses and whether or not the surviving spouse or any other person is also liable therefor.
Sec. 15. Chapter 151 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Subject to the rights of creditors and taxing authorities, competent successors may agree among themselves to alter the interests, shares or amounts to which they are entitled under the terms of the will of the decedent, or under the laws of intestacy, in any way that they provide in a written contract executed by all who are affected by its provisions. The personal representative shall abide by the terms of the contract subject to his obligation to administer the estate for the benefit of creditors, to pay all taxes and costs of administration, and to carry out the responsibilities of his office for the benefit of any successors of the decedent who are not parties. Personal representatives of the estate of decedents are not required to see to the performance of trusts if the trustee thereof is another person who is willing to accept the trust. Accordingly, trustees of a testamentary trust are successors for the purposes of this section. This section does not relieve trustees of any duties owed to beneficiaries of trusts.
2. As used in this section:
(a) "Personal representative" includes, without limitation, an executor, an administrator, a successor personal representative, a special administrator and persons who perform substantially the same function under the law governing their status.
(b) "Successors" means persons, other than creditors, who are entitled to property of a decedent under the terms of his will or pursuant to this Title.
Sec. 16. NRS 151.090 is hereby amended to read as follows:
151.0901. When a petition for final distribution is filed, the petitioner shall give notice of the hearing of the petition [by mail] to all persons individually entitled to notice as provided in NRS 155.010.
2. The court may order such further notice as it may deem proper.
Sec. 17. Chapter 153 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, or in the will or trust, a trustee or executor may distribute property and money:
(a) In divided or undivided interests; and
(b) On a pro rata or nonpro rata basis.
2. Each beneficiary must agree before any property or money is distributed on a nonpro rata basis, unless the will or trust authorizes a trustee or executor to distribute property and money on a nonpro rata basis.
Sec. 18. NRS 153.040 is hereby amended to read as follows:
153.0401. The trustee or other fiduciary may petition the court, from time to time, for instructions as to the administration of the trust.
2. Upon the filing thereof, together with a verified statement of the trustee giving the names and post office addresses, if known, of the beneficiaries and any other persons interested in the granting of the petition, the clerk shall set the hearing by the court, and shall give notice thereof for the period and in the manner required by NRS 155.010.
3. The trustee shall cause notice of the hearing to be mailed to the beneficiaries [at their last known addresses,] and to all other persons interested in the granting of the petition, if any, as provided in NRS 155.010, whether they have requested special notice or given notice of appearance or not.
[4. If there be any beneficiaries or other persons interested in the granting of the petition whose post office addresses are unknown, the notice of the hearing on the petition shall be published in a daily newspaper on at least 2 different days before the hearing and at least 5 days must elapse between the last publication and the time set for hearing the petition.]
Sec. 19. NRS 155.010 is hereby amended to read as follows:
155.0101. [Unless] Except as otherwise provided in a specific statute relating to the kind of notice required or otherwise ordered by the court in a particular instance, [every notice required by this Title shall be given by registered or certified mail, postage prepaid, at least 10 days prior to the date set for hearing or other action by the court. Each such notice shall be addressed to the intended recipient at his last known address, receipt for delivery requested.
2. Notice shall be given to each executor, administrator or trustee who is not a party to the filing and to any person who has requested notice as provided for in this chapter or who is otherwise entitled to individual notice pursuant to this Title.] a petitioner shall cause notice of the time and place of the hearing of a petition to be given to a person entitled to notice pursuant to this Title or his attorney if he has appeared by attorney or requested that notice be sent to his attorney. Notice must be given:
(a) By mailing a copy thereof at least 10 days before the time set for the hearing by certified, registered or ordinary first-class mail addressed to the person being notified at the post office address given in his demand for notice, if any, or at his office or place of residence, if known, or by personally delivering a copy therof to the person being notified at least 10 days before the time set for the hearing; or
(b) If the address or identity of the person is not known and cannot be ascertained with reasonable diligence, by publishing at least once a week for 3 consecutive weeks a copy thereof in a newspaper having general circulation in the county where the hearing is to be held, the last publication of which must be at least 10 days before the date set for the hearing.
2. The court, for good cause shown, may provide for a different method or time of giving notice for any hearing.
3. Proof of the giving of notice [shall] must be made [at] on or before the hearing [; and if it appears to the satisfaction of the court that the notice has been regularly given the court shall so find in its order, and the order, when it becomes final, is conclusive upon all persons.] and filed in the proceeding.
4. A person entitled to notice may, in writing, waive notice of the hearing of a petition.
Sec. 20. NRS 155.020 is hereby amended to read as follows:
155.0201. Notice of a petition for the probate of a will and the issuance of letters testamentary or for letters of administration and the notice to creditors must be given to:
(a) The persons respectively entitled thereto, including the state welfare administrator , [of the welfare division of the department of human resources, by mail] as provided in NRS 155.010; and
(b) The public, including creditors whose names and addresses are not readily ascertainable, by publication on three dates of publication before the hearing, and if the newspaper is published more than once each week there must be at least 10 days from the first to last dates of publication, including both the first and last days.
2. Every publication required by this section must be made in a newspaper printed in the county where the proceedings are pending, but if there is not such a newspaper, then in one having general circulation in that county.
3. The notice of the hearing upon the petition to administer the estate must be in substantially the following form:

NOTICE OF THE HEARING UPON THE PETITION TO
ADMINISTER THE ESTATE

Notice is hereby given that ................................ has filed in this court a petition for the probate of a will and for letters testamentary, or for letters of administration, of the estate of ............................., deceased, and a hearing has been set for the .......... day of ................, 19......, at .......... (a.m. or p.m.) at the courthouse of the above-entitled court.
All persons interested in the estate are notified to appear and show cause why the petition should not be granted.
Dated
4. As soon as practicable after appointment, every executor or administrator shall, in addition to publishing the notice to creditors, mail a copy of the notice to those creditors whose names and addresses are readily ascertainable and who have not already filed a claim. The notice must be in substantially the following form:

NOTICE TO CREDITORS

Notice is hereby given that the undersigned has been appointed and qualified by the (giving the title of the court and the date of appointment) as executor or administrator (as the case may be) of the estate of ................................, deceased. All creditors having claims against the estate are required to file the claims with the clerk of the court within .......... (60 or 90) days after the mailing or the first publication (as the case may be) of this notice.
Dated
Sec. 20.5. NRS 155.190 is hereby amended to read as follows:
155.190In addition to any order or decree from which an appeal is expressly permitted by this Title, an appeal may be taken to the supreme court within 30 days after its entry, from an order or decree:
1. Granting or revoking letters testamentary or letters of administration.
2. Admitting a will to probate or revoking the probate thereof.
3. Setting aside an estate claimed not to exceed [$25,000] $50,000 in value.
4. Setting apart property as a homestead, or claimed to be exempt from execution.
5. Granting or modifying a family allowance.
6. Directing or authorizing the sale or conveyance or confirming the sale of property.
7. Settling an account of an executor, administrator or trustee.
8. Instructing or appointing a trustee.
9. Instructing or directing an executor or administrator.
10. Directing or allowing the payment of a debt, claim, legacy or attorney's fee.
11. Determining heirship or the persons to whom distribution must be made or trust property must pass.
12. Distributing property.
13. Refusing to make any order mentioned in this section or any decision wherein the amount in controversy equals or exceeds, exclusive of costs, $1,000.
14. Granting or denying a motion to enforce the liability of a surety filed pursuant to NRS 142.035.
Sec. 21. NRS 159.085 is hereby amended to read as follows:
159.0851. Within 60 days after the date of his appointment, or, if necessary, such further time as the court may allow, a guardian of the estate shall make and file in the guardianship proceeding a verified inventory of all the property of the ward which comes to his possession or knowledge.
2. Whenever any property of the ward not mentioned in the inventory comes to the possession or knowledge of a guardian of the estate, he shall make and file in the guardianship proceeding a verified supplemental inventory within 30 days after the property comes to his possession or knowledge or include the property in his next accounting. The court may order which of the two methods the guardian shall follow.
3. The court may order all or any part of the property of the ward appraised as provided in NRS 144.020, 144.030, 144.070 and 144.090 [.] and section 4 of this act.
Sec. 22. NRS 159.197 is hereby amended to read as follows:
159.1971. After the winding up of the affairs of the guardianship, the guardian shall deliver physical possession of all of the ward's property to the ward, his executor or administrator or the successor guardian, as the case may be, and obtain a receipt therefor.
2. If the guardianship has terminated by reason of the death of the ward, the court, by order, may authorize the guardian to distribute the deceased ward's property in the same manner as authorized by NRS 146.070, if the gross value of the property, less encumbrances, remaining in the hands of the guardian does not exceed [$25,000,] $50,000, or as authorized by NRS 146.080, if the gross value of the property remaining in the hands of the guardian does not exceed [$10,000.] $20,000.
Sec. 23. NRS 164.030 is hereby amended to read as follows:
164.0301. Any trustee whose appointment has been confirmed, as provided in NRS 164.010, at any time thereafter may petition the court for instructions in the administration of the trust or for a construction of the trust instrument, or upon or after the filing of a final account, for the settlement and allowance thereof.
2. Upon the filing of the petition the court shall make an order fixing a time and place for hearing thereof, unless hearing has been waived in writing by the beneficiaries of the trust.
3. Unless otherwise ordered by the court, notice of the hearing [shall] must be given as follows:
(a) The clerk shall [cause a copy of the order to be posted at the courthouse of the county where the proceedings are pending, at least 10 days before the day of the hearing; and] set the petition for hearing;
(b) The petitioner must give notice stating the filing of the petition and the object and time of the hearing to all persons entitled to notice as provided in NRS 155.010; and
(c) The trustee filing such petition shall cause a copy of the order to be delivered to the beneficiaries of the trust as follows:
(1) By handing the notice or copy to the beneficiary personally or to his guardian, or attorney of record; or
(2) By sending it by registered or certified mail with return receipt requested to such beneficiary, or his guardian or attorney of record, at the last known address of the addressee.
4. Upon the hearing the court shall make such order as it deems appropriate, which order [shall be] is final and conclusive as to all matters thereby determined and binding in rem upon the trust estate and upon the interests of all beneficiaries, vested or contingent, except that appeal to the supreme court may be taken from the order within 30 days from the entry thereof by filing notice of appeal with the clerk of the district court, who shall mail a copy of the notice to each adverse party who has appeared of record.

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