AB445_R1

Assembly Bill No. 445–Committee on
Health and Human Services

CHAPTER..........

AN ACT relating to welfare; transferring certain duties relating to Medicaid from the Welfare Division of the Department of Human Resources to the Department of Human Resources and from the State Welfare Administrator to the Director of the Department of Human Resources; revising the definition of the “undivided estate” of a deceased recipient of Medicaid; requiring the Director of the Department of Human Resources to adopt certain regulations; providing that certain provisions of law do not apply to the recovery of money owed to the Department of Human Resources as a result of the payment of benefits for Medicaid; repealing the requirement that the State Plan for Medicaid include a requirement that certain senior citizens are eligible for Medicaid for long-term care; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 422 of NRS is hereby amended by adding

thereto a new section to read as follows:

The Director:

1. Shall administer the provisions of NRS 422.2935 to

422.2936, inclusive;

2. May adopt such regulations as are necessary for the

administration of those provisions; and

3. May invoke any legal, equitable or special procedures for

the enforcement of those provisions.

Sec. 2. NRS 422.054 is hereby amended to read as follows:

422.054 “Undivided estate” means all real and personal

property and other assets included in the estate of a deceased

recipient of Medicaid and any other real and personal property and

other assets in or to which he had an interest or legal title

immediately before or at the time of his death, to the extent of that

interest or title. The term includes, without limitation, assets

conveyed to a survivor, heir or assign of the deceased recipient

through or as the result of any joint tenancy, tenancy in common,

survivorship, life estate, living trust , annuity, declaration of

homestead or other arrangement . [, including, without limitation,

any of the decedent’s separate property and his interest in

community property that was transferred to a community spouse

pursuant to NRS 123.259 or pursuant to an order of a district court

under any other provision of law.]

Sec. 3. NRS 422.222 is hereby amended to read as follows:

422.222 The State Welfare Administrator may adopt such

regulations as are necessary for the administration of NRS 422.160

to 422.2345, inclusive, 422.2931 to [422.2936,] 422.29324,

inclusive, and 422.310 to 422.3754, inclusive, and any program of

the Welfare Division.

Sec. 4. NRS 422.230 is hereby amended to read as follows:

422.230 The State Welfare Administrator shall:

1. Supply the Director with material on which to base proposed

legislation.

2. Cooperate with the Federal Government and state

governments for the more effective attainment of the purposes of

this chapter.

3. Coordinate the activities of the Welfare Division with other

agencies, both public and private, with related or similar activities.

4. Keep a complete and accurate record of all proceedings,

record and file all bonds and contracts, and assume responsibility for

the custody and preservation of all papers and documents pertaining

to his office.

5. Inform the public in regard to the activities and operation of

the Welfare Division, and provide other information which will

acquaint the public with problems relating to welfare.

6. Conduct studies into the causes of the social problems with

which the Welfare Division is concerned.

7. Provide leadership in the community in order that all welfare

activities are pointed toward the single goal of improving the public

welfare.

8. Invoke any legal, equitable or special procedures for the

enforcement of his orders or the enforcement of the provisions of

NRS 422.160 to 422.2345, inclusive, 422.2931 to [422.2936,]

422.29324, inclusive, and 422.310 to 422.3754, inclusive.

9. Exercise any other powers that are necessary and proper for

the standardization of state work, to expedite business, to ensure fair

consideration of applications for aid, and to promote the efficiency

of the service provided by the Welfare Division.

Sec. 5. NRS 422.240 is hereby amended to read as follows:

422.240 1. Money to carry out the provisions of NRS

422.001 to 422.410, inclusive, and section 1 of this act and

422.580, including, without limitation, any federal money allotted to

the State of Nevada pursuant to the program to provide Temporary

Assistance for Needy Families and the Program for Child Care and

Development, must be provided by appropriation by the Legislature

from the State General Fund.

2. Disbursements for the purposes of NRS 422.001 to 422.410,

inclusive, and section 1 of this act and 422.580 must be made upon

claims duly filed, audited and allowed in the same manner as other

money in the State Treasury is disbursed.

Sec. 6. NRS 422.272 is hereby amended to read as follows:

422.272 1. [Except as otherwise provided in NRS 422.2725,

the] The Director shall include in the State Plan for Medicaid a

requirement that the State shall pay the nonfederal share of

expenditures for the medical, administrative and transactional costs,

to the extent not covered by private insurance, of a person:

(a) Who is admitted to a hospital, facility for intermediate care

or facility for skilled nursing for not less than 30 consecutive days;

(b) Who is covered by the State Plan for Medicaid; and

$775 or 156 percent of the supplemental security income benefit

rate established pursuant to 42 U.S.C. § 1382(b)(1), whichever is

greater.

2. As used in this section:

(a) “Facility for intermediate care” has the meaning ascribed to

it in NRS 449.0038.

(b) “Facility for skilled nursing” has the meaning ascribed to it

in NRS 449.0039.

Sec. 7. NRS 422.2931 is hereby amended to read as follows:

422.2931 The State Welfare Administrator and the Welfare

Division shall administer the provisions of NRS 422.160 to

422.2345, inclusive, 422.2931 to [422.2936,] 422.29324, inclusive,

and 422.310 to 422.3754, inclusive, subject to administrative

supervision by the Director.

Sec. 8. NRS 422.2935 is hereby amended to read as follows:

422.2935 1. Except as otherwise provided in this section and

to the extent it is not prohibited by federal law and when

circumstances allow, the [Welfare Division] Department shall

recover benefits correctly paid for Medicaid from:

(a) The undivided estate of the person who received those

benefits; and

(b) Any recipient of money or property from the undivided

estate of the person who received those benefits.

2. The [Welfare Division] Department shall not recover

benefits pursuant to subsection 1, except from a person who is

neither a surviving spouse nor a child, until after the death of the

surviving spouse, if any, and only at a time when the person who

received the benefits has no surviving child who is under 21 years of

age , [or is] blind or [permanently and totally] disabled.

3. Except as otherwise provided by federal law, if a transfer of

real or personal property by a recipient of Medicaid is made for less

than fair market value, the [Welfare Division] Department may

pursue any remedy available pursuant to chapter 112 of NRS with

respect to the transfer.

4. The amount of Medicaid paid to or on behalf of a person is a

claim against the estate in any probate proceeding only at a time

when there is no surviving spouse or surviving child who is under

21 years of age , [or is] blind or [permanently and totally] disabled.

5. The [State Welfare Administrator] Director may elect not to

file a claim against the estate of a recipient of Medicaid or his

spouse if [he] the Director determines that the filing of the claim

will cause an undue hardship for the spouse or other survivors of the

recipient. The [State Welfare Administrator] Director shall adopt

regulations defining the circumstances that constitute an undue

hardship.

6. Any recovery of money obtained pursuant to this section

must be applied first to the cost of recovering the money. Any

remaining money must be divided among the Federal Government,

the Department and the county in the proportion that the amount of

assistance each contributed to the recipient bears to the total amount

of the assistance contributed.

7. Any recovery by the [Welfare Division] Department from

the undivided estate of a recipient pursuant to this section must be

paid in cash to the extent of:

(a) The amount of Medicaid paid to or on behalf of the recipient

after October 1, 1993; or

(b) The value of the remaining assets in the undivided

estate,

whichever is less.

Sec. 9. NRS 422.29353 is hereby amended to read as follows:

422.29353 1. Except as otherwise provided in this section,

the [Welfare Division] Department shall, to the extent that it is not

prohibited by federal law, recover from a recipient of public

assistance, the estate of the recipient, the undivided estate of a

recipient of Medicaid or a person who signed the application for

public assistance on behalf of the recipient an amount not to exceed

the amount of public assistance incorrectly paid to the recipient, if

the person who signed the application:

(a) Failed to report any required information to the [Welfare

Division] Department that the person knew at the time he signed the

application; or

(b) Failed to report to the [Welfare Division] Department within

the period allowed by the [Welfare Division] Department any

required information that the person obtained after he filed the

application.

2. Except as otherwise provided in this section, a recipient of

incorrectly paid public assistance, the undivided estate of a recipient

of Medicaid or a person who signed the application for public

benefits on behalf of the recipient shall reimburse the [Division]

Department or appropriate state agency for the value of the

incorrectly paid public assistance.

3. The [State Welfare Administrator] Director or his designee

may, to the extent that it is not prohibited by federal law, determine

the amount of, and settle, adjust, compromise or deny a claim

against a recipient of public assistance, the estate of the recipient,

the undivided estate of a recipient of Medicaid or a person who

signed the application for public assistance on behalf of the

recipient.

4. The [State Welfare Administrator] Director may, to the

extent that it is not prohibited by federal law, waive the repayment

of public assistance incorrectly paid to a recipient if the incorrect

payment was not the result of an intentional misrepresentation or

omission by the recipient and if repayment would cause an undue

hardship to the recipient. The [State Welfare Administrator]

Director shall, by regulation, establish the terms and conditions of

such a waiver, including, without limitation, the circumstances that

constitute undue hardship.

Sec. 10. NRS 422.29355 is hereby amended to read as

follows:

422.29355 1. The [Welfare Division] Department may, to

the extent not prohibited by federal law, petition for the imposition

of a lien pursuant to the provisions of NRS 108.850 against real or

personal property of a recipient of Medicaid as follows:

(a) The [Welfare Division] Department may obtain a lien

against a recipient’s property, both real or personal, before or after

his death in the amount of assistance paid or to be paid on his behalf

if the court determines that assistance was incorrectly paid for the

recipient.

(b) The [Welfare Division] Department may seek a lien against

the real property of a recipient at any age before his death in the

amount of assistance paid or to be paid for him if he is an inpatient

in a nursing facility, intermediate care facility for the mentally

retarded or other medical institution and the [Welfare Division]

Department determines, after notice and opportunity for a hearing

in accordance with [its] applicable regulations, that [he] the

recipient cannot reasonably be expected to be discharged and return

home.

2. No lien may be placed on a recipient’s home pursuant to

paragraph (b) of subsection 1 for assistance correctly paid if:

(a) His spouse;

(b) His child who is under 21 years of age , [or] blind or

[permanently and totally] disabled as determined in accordance with

42 U.S.C. § 1382c; or

home and who was residing in the home for at least 1 year

immediately before the date the recipient was admitted to the

medical institution,

is lawfully residing in the home.

3. Upon the death of a recipient , the [Welfare Division]

Department may seek a lien upon [his] the recipient’s undivided

estate as defined in NRS 422.054.

4. The [State Welfare Administrator] Director shall release a

lien pursuant to this section:

(a) Upon notice by the recipient or his representative to the

[Administrator] Director that the recipient has been discharged from

the medical institution and has returned home;

(b) If the lien was incorrectly determined; or

Department.

Sec. 11. NRS 422.2936 is hereby amended to read as follows:

422.2936 Each application for Medicaid must include:

1. A statement that any assistance paid to a recipient may be

recovered in an action filed against the estate of the recipient or his

spouse; and

2. A statement that any person who signs an application for

Medicaid and fails to report:

(a) Any required information to the [Welfare Division]

Department which he knew at the time he signed the application; or

(b) Within the period allowed by the [Welfare Division,]

Department, any required information to the [Welfare Division]

Department which he obtained after he filed the application,

may be personally liable for any money incorrectly paid to the

recipient.

Sec. 12. NRS 40.525 is hereby amended to read as follows:

40.525 1. If title or an interest in real or personal property is

affected by the death of any person, any other person who claims

any interest in the real or personal property, if his interest is affected

by the death of that person, or the State of Nevada, may file in the

district court of any county in which any part of the real or personal

property is situated a verified petition setting forth those facts and

particularly describing the real or personal property, the interest of

the petitioner and the interest of the deceased therein.

2. The clerk shall set the petition for hearing by the court.

Notice of hearing of the petition must be mailed, by certified mail,

return receipt requested, postage prepaid, to the heirs at law of the

deceased person at their places of business or residences, if known,

and if not, by publication for at least 3 successive weeks in such

newspaper as the court orders. The clerk shall send a copy of the

notice of hearing or of the affidavit to the [Welfare Division of the]

Department of Human Resources by certified mail, return receipt

requested, postage prepaid, if the State is not the petitioner, at the

time notice is mailed to the heirs at law or the notice is published.

Failure on the part of any such heir at law to contest the petition

precludes any such heir at law from thereafter contesting the validity

of the joint interest or its creation or termination.

3. The court shall take evidence for or against the petition, and

may render judgment thereon establishing the fact of the death and

the termination of the interest of the deceased in the real or personal

property described in the petition.

4. A certified copy of the decree may be recorded in the office

of the recorder of each county in which any part of the real or

personal property is situated.

5. As an alternative method of terminating the interest of the

deceased person, if title or an interest in real or personal property

held in joint tenancy or as community property with right of

survivorship is affected by the death of a joint tenant or spouse, any

person who has knowledge of the facts may record in the office of

the county recorder in the county where the property is situated an

affidavit meeting the requirements of NRS 111.365, accompanied

by a certified copy of the death certificate of the deceased person.

Sec. 13. NRS 108.860 is hereby amended to read as follows:

108.860 1. A petition for the imposition of a lien must be

signed by or on behalf of the [State Welfare Administrator] Director

of the Department of Human Resources or the Attorney General

and filed with the clerk of the court, who shall set the petition for

hearing.

2. Notice of a petition for the imposition of a lien must be

given by registered or certified mail, postage prepaid, at least 10

days before the date set for hearing or other action by the court.

Each such notice must be addressed to the intended recipient at his

last address known to the [Administrator,] Director, receipt for

delivery requested. The [Administrator] Director shall cause the

notice to be published, at least once a week for 3 successive weeks,

in one newspaper published in the county, and if there is no

newspaper published in the county, then in such mode as the court

may determine, notifying all persons claiming any interest in the

property of the filing of the petition, the object and the location, date

and time of the hearing.

3. Notice of a petition for the imposition of a lien must be

given to:

(a) Each person who has requested notice;

(b) The person who is receiving or has received benefits for

Medicaid;

receiving or has received benefits for Medicaid, if any;

(d) Each executor, administrator or trustee of the estate of a

decedent who received benefits for Medicaid, if any;

(e) The heirs of such a decedent known to the [Administrator;]

Director; and

(f) Each person who is claiming any interest in the property or

who is listed as having any interest in the subject property,

and must state the filing of the petition, the object, and the time set

for hearing.

4. At the time appointed, or at any other time to which the

hearing may be continued, upon proof being made by affidavit or

otherwise to the satisfaction of the court that notice has been given

as required by this chapter, the court shall proceed to hear the

testimony in support of the petition. Each witness who appears and

is sworn shall testify orally.

5. The court shall make findings as to the appropriateness of

the lien and the amount of the lien.

6. At the time of the filing of the petition for imposition of a

lien , the [Administrator] Director shall file a notice of pendency of

the action in the manner provided in NRS 14.010.

7. Upon imposition of the lien by the court, the [Administrator]

Director shall serve the notice of lien upon the owner by certified or

registered mail and file it with the office of the county recorder of

each county where real property subject to the lien is located.

8. The notice of lien must contain:

(a) The amount due;

(b) The name of the owner of record of the property; and

9. If the amount due as stated in the notice of lien is reduced by

a payment, the [Administrator] Director shall amend the notice of

lien, stating the amount then due, within 20 days after receiving the

payment.

Sec. 14. NRS 108.870 is hereby amended to read as follows:

108.870 The [State Welfare Administrator] Director of the

Department of Human Resources may, to the extent not prohibited

by 42 U.S.C. § 1396p(b), foreclose upon a lien for money owed to

the Department of Human Resources as a result of the payment of

benefits for Medicaid by action in the district court in the same

manner as for foreclosure of any other lien.

Sec. 15. NRS 111.365 is hereby amended to read as follows:

111.365 1. In the case of real property owned by two or more

persons as joint tenants or as community property with right of

survivorship, it is presumed that all title or interest in and to that real

property of each of one or more deceased joint tenants or the

deceased spouse has terminated, and vested solely in the surviving

joint tenant or spouse or vested jointly in the surviving joint tenants,

if there has been recorded in the office of the recorder of the county

or counties in which the real property is situate an affidavit,

subscribed and sworn to by a person who has knowledge of the facts

required in this subsection, which sets forth the following:

(a) The family relationship, if any, of the affiant to each

deceased joint tenant or the deceased spouse;

(b) A description of the instrument or conveyance by which the

joint tenancy or right of survivorship was created;

right of survivorship; and

(d) The date and place of death of each deceased joint tenant or

the deceased spouse.

2. Each month, a county recorder shall send all the information

contained in each affidavit received by him pursuant to subsection 1

during the immediately preceding month to the [Welfare Division of

the] Department of Human Resources in any format and by any

medium approved by the [Welfare Division.] Department.

Sec. 16. Chapter 115 of NRS is hereby amended by adding

thereto a new section to read as follows:

Nothing in this chapter exempts any real or personal property

from any statute of this state that authorizes the recovery of money

owed to the Department of Human Resources as a result of the

payment of benefits from Medicaid through the imposition or

foreclosure of a lien against the property of a recipient of

Medicaid in the manner set forth in NRS 422.2935 to 422.2936,

inclusive.

Sec. 17. NRS 115.005 is hereby amended to read as follows:

115.005 As used in this chapter, unless the context otherwise

requires:

1. “Equity” means the amount that is determined by subtracting

from the fair market value of the property[,] the value of any liens

excepted from the homestead exemption pursuant to subsection 3 of

NRS 115.010[.] or section 16 of this act.

2. “Homestead” means the property consisting of:

(a) A quantity of land, together with the dwelling house thereon

and its appurtenances;

(b) A mobile home whether or not the underlying land is owned

by the claimant; or

to chapter 116 or 117 of NRS, with any appurtenant limited

common elements and its interest in the common elements of the

common-interest community,

to be selected by the husband and wife, or either of them, or a single

person claiming the homestead.

Sec. 18. NRS 115.010 is hereby amended to read as follows:

115.010 1. The homestead is not subject to forced sale on

execution or any final process from any court, except as otherwise

provided by subsections 2, 3 and 5[.] , and section 16 of this act.

2. The exemption provided in subsection 1 extends only to that

amount of equity in the property held by the claimant which does

not exceed $125,000 in value, unless allodial title has been

established and not relinquished, in which case the exemption

provided in subsection 1 extends to all equity in the dwelling, its

appurtenances and the land on which it is located.

3. Except as otherwise provided in subsection 4, the exemption

provided in subsection 1 does not extend to process to enforce the

payment of obligations contracted for the purchase of the property,

or for improvements made thereon, including any mechanic’s lien

lawfully obtained, or for legal taxes, or for:

(a) Any mortgage or deed of trust thereon executed and given;

(b) Any lien to which prior consent has been given through the

acceptance of property subject to any recorded declaration of

restrictions, deed restriction, restrictive covenant or equitable

servitude, specifically including any lien in favor of an association

pursuant to NRS 116.3116 or 117.070,

by both husband and wife, when that relation exists.

4. If allodial title has been established and not relinquished, the

exemption provided in subsection 1 extends to process to enforce

the payment of obligations contracted for the purchase of the

property, and for improvements made thereon, including any

mechanic’s lien lawfully obtained, and for legal taxes levied by a

state or local government, and for:

(a) Any mortgage or deed of trust thereon; and

(b) Any lien even if prior consent has been given through the

acceptance of property subject to any recorded declaration of

restrictions, deed restriction, restrictive covenant or equitable

servitude, specifically including any lien in favor of an association

pursuant to NRS 116.3116 or 117.070,

unless a waiver for the specific obligation to which the judgment

relates has been executed by all allodial titleholders of the property.

5. Establishment of allodial title does not exempt the property

from forfeiture pursuant to NRS 179.1156 to 179.119, inclusive, or

207.350 to 207.520, inclusive.

6. Any declaration of homestead which has been filed before

October 1, 1995, shall be deemed to have been amended on that date

by extending the homestead exemption commensurate with any

increase in the amount of equity held by the claimant in the property

selected and claimed for the exemption up to the amount permitted

by law on that date, but the increase does not impair the right of any

creditor to execute upon the property when that right existed before

October 1, 1995.

Sec. 19. NRS 136.100 is hereby amended to read as follows:

136.100 1. A petition for the probate of a will and for the

issuance of letters must be signed by the party petitioning, or the

attorney for the petitioner, and filed with the clerk of the court, who

shall set the petition for hearing.

2. The petitioner shall give notice of the hearing for the period

and in the manner provided in NRS 155.020 to the heirs of the

testator and the devisees named in the will, to all persons named as

personal representatives who are not petitioning and to the

[Administrator of the Welfare Division] Director of the Department

of Human Resources. The notice must be substantially in the form

provided in that section.

Sec. 20. NRS 139.100 is hereby amended to read as follows:

139.100 The clerk shall set the petition for hearing, and notice

must be given to the heirs of the decedent and to the [Administrator

of the Welfare Division] Director of the Department of Human

Resources as provided in NRS 155.020. The notice must state the

filing of the petition, the object and the time for hearing.

Sec. 21. NRS 143.035 is hereby amended to read as follows:

143.035 1. A personal representative shall use reasonable

diligence in performing the duties of the personal representative and

in pursuing the administration of the estate.

2. A personal representative in charge of an estate that has not

been closed shall:

(a) Within 6 months after the personal representative’s

appointment, where no federal estate tax return is required to be

filed for the estate; or

(b) Within 15 months after the personal representative’s

appointment, where a federal estate tax return is required to be filed

for the estate,

file with the court a report explaining why the estate has not been

closed.

3. Upon receiving the report, the clerk shall set a time and

place for a hearing of the report. The personal representative shall

send a copy of the report and shall give notice of the hearing, for the

period and in the manner provided in NRS 155.010, to:

(a) Each person whose interest is affected as an heir or devisee;

and

(b) The [Welfare Division of the] Department of Human

Resources, if the [Welfare Division] Department has filed a claim

against the estate.

4. At the hearing, the court shall determine whether or not the

personal representative has used reasonable diligence in the

administration of the estate, and if the personal representative has

not, the court may:

(a) Subject to the provisions of NRS 143.037:

(1) Prescribe the time within which the estate must be closed;

(2) Allow the personal representative additional time for

closing and order a subsequent report; or

(b) Revoke the letters of the personal representative, appoint a

successor and prescribe a reasonable time within which the

successor shall close the estate.

Sec. 22. NRS 145.060 is hereby amended to read as follows:

145.060 1. A personal representative shall publish and mail

notice to creditors in the manner provided in NRS 155.020.

2. Creditors of the estate must file their claims, due or to

become due, with the clerk, within 60 days after the mailing to the

creditors for those required to be mailed, or 60 days after the first

publication of the notice to creditors pursuant to NRS 155.020, and

within 10 days thereafter the personal representative shall allow or

reject the claims filed.

3. Any claim which is not filed within the 60 days is barred

forever, except that if it is made to appear, by the affidavit of the

claimant or by other proof to the satisfaction of the court, that the

claimant did not have notice as provided in NRS 155.020, the claim

may be filed at any time before the filing of the final account.

4. Every claim which is filed as provided in this section and

allowed by the personal representative[,] must then, and not until

then, be ranked as an acknowledged debt of the estate and be paid in

the course of administration, except that payment of small debts in

advance may be made pursuant to subsection 3 of NRS 150.230.

5. If a claim filed by the [Welfare Division of the] Department

of Human Resources is rejected by the personal representative, the

[State Welfare Administrator] Director of the Department may,

within 20 days after receipt of the written notice of rejection,

petition the court for summary determination of the claim. A

petition for summary determination must be filed with the clerk,

who shall set the petition for hearing, and the petitioner shall give

notice for the period and in the manner required by NRS 155.010.

Allowance of the claim by the court is sufficient evidence of its

correctness, and it must be paid as if previously allowed by the

personal representative.

Sec. 23. NRS 146.070 is hereby amended to read as follows:

146.070 1. If a person dies leaving an estate the gross value

of which, after deducting any encumbrances, does not exceed

$50,000, and there is a surviving spouse or minor child or minor

children of the decedent, the estate must not be administered upon,

but the whole estate, 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 child or minor

children, or for the support of the minor child or minor children, if

there is no surviving spouse. Even if 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. If there is no surviving spouse or minor child of the decedent

and the gross value of a decedent’s estate, after deducting any

encumbrances, does not exceed $50,000, upon good cause shown,

the court shall order that the estate not be administered upon, but the

whole estate be assigned and set apart in the following order:

(a) 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

(b) Any balance remaining to the claimant or claimants entitled

thereto pursuant to a valid will of the decedent, and if there is no

valid will, pursuant to intestate succession.

3. Proceedings taken under this section, whether or not the

decedent left a valid will, must not begin until at least 30 days after

the death of the decedent and must be originated by a petition

containing:

(a) A specific description of all the decedent’s property.

(b) A list of all the liens and mortgages of record at the date of

the decedent’s death.

(d) A statement of the debts of the decedent so far as known to

the petitioner.

(e) The names and residences of the heirs and devisees of the

decedent and the age of any who is a minor and the relationship of

the heirs and devisees to the decedent, so far as known to the

petitioner.

4. The clerk shall set the petition for hearing and the petitioner

shall give notice of the petition and hearing in the manner provided

in NRS 155.010 to the decedent’s heirs and devisees and to the

[State Welfare Administrator.] Director of the Department of

Human Resources. If a complete copy of the petition is not

enclosed with the notice, the notice must include a statement 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 $50,000, the court may

direct that the estate be distributed to the father or mother of a minor

heir or devisee, with or without the filing of any bond, or to a

custodian under chapter 167 of NRS, 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 is

deemed 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. 24. NRS 146.080 is hereby amended to read as follows:

146.080 1. If a decedent leaves no real property, nor interest

therein, nor mortgage or 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 $20,000, a person who has a right to

succeed to the property of the decedent pursuant to the laws of

succession for a decedent who died intestate or pursuant to the valid

will of a decedent who died testate, on behalf of all persons entitled

to succeed to the property claimed, or the [State Welfare

Administrator] Director of the Department of Human Resources or

public administrator on behalf of the State or others entitled to the

property, 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 the claimant 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 evidence 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) The date and place of death of the decedent;

except amounts due to the decedent for services in the Armed

Forces of the United States, does not exceed $20,000, and that the

property does not include any real property nor interest therein, nor

mortgage or lien thereon;

(d) That at least 40 days have elapsed since the death of the

decedent, as shown in a certified copy of the certificate of death of

the decedent attached to the affidavit;

(e) That no 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 the affiant’s 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 14 days have elapsed since the notice was served or

mailed;

(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 an understanding 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 the affiant 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 the affiant receives is held by

the affiant 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 that

information, and if the person relies in good faith, the person 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 $20,000 is

located in a state which requires an order of a court for the transfer

of the property, or if the estate consists of stocks or bonds which

must be transferred by an agent outside this state, any person

qualified pursuant to the provisions of subsection 1 to have the

stocks or bonds or other property transferred may do so by obtaining

a court order directing the transfer. The person desiring the transfer

must file a petition, which may be ex parte, containing:

(a) A specific description of all the property of the decedent.

(b) A list of all the liens and mortgages of record at the date of

the decedent’s death.

(d) The names, ages of any minors, and residences of the

decedent’s heirs and devisees.

(e) A request for 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 $20,000.

(f) An attached copy of the executed affidavit made pursuant to

subsection 2.

If the court finds that the gross value of the estate does not exceed

$20,000 and the person requesting the transfer is entitled to it, the

court may enter an order directing the transfer.

Sec. 25. NRS 147.070 is hereby amended to read as follows:

147.070 1. A claim for an amount of $250 or more filed with

the clerk must be supported by the affidavit of the claimant that:

(a) The amount is justly due (or if the claim is not yet due, that

the amount is a just demand and will be due on the ..... day of ........).

(b) No payments have been made thereon which are not

credited.

knowledge of the claimant or other affiant.

2. Every claim filed with the clerk must contain the mailing

address of the claimant. Any written notice mailed by a personal

representative to the claimant at the address furnished is proper

notice.

3. When the affidavit is made by any other person than the

claimant, the reasons why it is not made by the claimant must be set

forth in the affidavit.

4. The oath may be taken before any person authorized to

administer oaths.

5. The amount of interest must be computed and included in

the statement of the claim and the rate of interest determined.

6. Except as otherwise provided in subsection 7, the court may,

for good cause shown, allow a defective claim or affidavit to be

corrected or amended on application made at any time before the

filing of the final account, but an amendment may not be made to

increase the amount of a claim after the time for filing a claim has

expired.

7. The court shall allow the [Welfare Division of the]

Department of Human Resources to amend at any time before the

filing of the final account a claim for the payment of benefits for

Medicaid that the [Division] Department identifies after the original

claim has been filed.

Sec. 26. NRS 147.130 is hereby amended to read as follows:

147.130 1. If a claim is rejected by the personal

representative or the court, in whole or in part, the claimant must be

immediately notified by the personal representative, and the

claimant must bring suit in the proper court against the personal

representative within 60 days after the notice or file a timely petition

for summary determination pursuant to subsection 2, whether the

claim is due or not, or the claim is forever barred. A claimant must

be informed of the rejection of the claim by written notice

forwarded to the claimant’s mailing address by registered or

certified mail.

2. If a claim filed by the [Welfare Division of the] Department

of Human Resources is rejected by the personal representative, the

[State Welfare Administrator] Director of the Department may,

within 20 days after receipt of the written notice of rejection,

petition the court for summary determination of the claim. A

petition for summary determination must be filed with the clerk,

who shall set the petition for hearing, and notice must be given for

the period and in the manner required by NRS 155.010. Allowance

of the claim by the court is sufficient evidence of its correctness, and

it must be paid as if previously allowed by the personal

representative.

3. In any action brought upon a claim rejected in whole or in

part by the personal representative, if he resides out of the State or

has departed from the State, or cannot, after due diligence, be found

within the State, or conceals himself to avoid the service of

summons, the summons, together with a copy of the complaint,

must be mailed directly to the last address given by him, with a copy

to the attorney for the estate, and proof of the mailing must be filed

with the clerk where the administration of the estate is pending. This

service is the equivalent of personal service upon the personal

representative, but he has 30 days from the date of service within

which to answer.

4. If the personal representative defaults after such service, the

default is sufficient grounds for his removal as personal

representative by the court without notice. Upon petition and notice,

in the manner provided for an application for letters of

administration, an administrator or an administrator with the will

annexed must be appointed by the court and, upon his qualification

as such, letters of administration or letters of administration with the

will annexed must be issued.

Sec. 27. NRS 155.020 is hereby amended to read as follows:

155.020 1. Notice of a petition for the probate of a will and

the issuance of letters and the notice to creditors must be given to:

(a) The persons respectively entitled thereto, including the [State

Welfare Administrator,] Director of the Department of Human

Resources, 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 published 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 the month

of................, of the year......, 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, a personal

representative 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 as of the date of first publication

of the notice 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 personal representative 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 ...........

5. If before the last day for the filing of a creditor’s claim under

NRS 147.040, the personal representative discovers the existence of

a creditor who was not readily ascertainable at the time of first

publication of the notice to creditors, the personal representative

shall immediately mail a copy of the notice to the creditor.

Sec. 28. NRS 164.025 is hereby amended to read as follows:

164.025 1. The trustee of a nontestamentary trust may after

the death of the settlor of the trust cause to be published a notice in

the manner specified in paragraph (b) of subsection 1 of NRS

155.020 and mail a copy of the notice to known or readily

ascertainable creditors.

2. The notice must be in substantially the following form:

NOTICE TO CREDITORS

Notice is hereby given that the undersigned is the duly appointed

and qualified trustee of the ................ trust. ................, the settlor of

that trust died on ................. A creditor having a claim against the

trust estate must file his claim with the undersigned at the address

given below within 90 days after the first publication of this notice.

Dated............

...............................

Trustee

...............................

Address

3. A person having a claim, due or to become due, against a

settlor or the trust must file the claim with the trustee within 90 days

after the mailing, for those required to be mailed, or 90 days after

publication of the first notice to creditors. Any claim against the

trust estate not filed within that time is forever barred. After

the expiration of the time, the trustee may distribute the assets of the

trust to its beneficiaries without personal liability to any creditor

who has failed to file a claim with the trustee.

4. If the trustee knows or has reason to believe that the settlor

received public assistance during his lifetime, the trustee shall,

whether or not he gives notice to other creditors, give notice within

30 days after the death to the [Welfare Division of the] Department

of Human Resources in the manner provided in NRS 155.010. If

notice to the [Welfare Division] Department is required by this

subsection but is not given, the trust estate and any assets transferred

to a beneficiary remain subject to the right of the [Welfare Division]

Department to recover public assistance received.

5. If a claim is rejected by the trustee, in whole or in part, the

trustee must, within 10 days [of] after the rejection, notify the

claimant of the rejection by written notice forwarded by registered

or certified mail to the mailing address of the claimant. The claimant

must bring suit in the proper court against the trustee within 60 days

after the notice is given, whether the claim is due or not, or the

claim is barred forever and the trustee may distribute the assets of

the trust to its beneficiaries without personal liability to any creditor

whose claim is barred forever.

Sec. 29. NRS 422.2725 is hereby repealed.

Sec. 30. Notwithstanding the provisions of sections 1, 3, 8 and

9 of this act that transfer the authority to adopt certain regulations

from the State Welfare Administrator to the Director of the

Department of Human Resources, any regulations adopted by the

State Welfare Administrator pursuant to sections 3, 8 or 9 of this act

before July 1, 2003, remain in effect and may be enforced by the

Director of the Department of Human Resources until the Director

adopts regulations to replace those regulations of the State Welfare

Administrator.

Sec. 31. 1. This section and section 29 of this act become

effective upon passage and approval.

2. Sections 1 to 28, inclusive, and 30 of this act become

effective on July 1, 2003.

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