SB207_EN

Senate Bill No. 207–Committee on Judiciary

CHAPTER..........

AN ACT relating to distribution of estates; authorizing a person to convey his interest in real property in a deed which becomes effective upon his death; extending the statute of limitations for certain actions filed on behalf of a decedent; increasing the limit for a set-aside estate; providing for the sale of personal property of an estate; making various other changes related to wills and estates; 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 111 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. The owner of an interest in real property may create a deed

that conveys his interest in real property to a grantee which

becomes effective upon the death of the owner. Such a conveyance

is subject to liens on the property in existence on the date of the

death of the owner.

2. The owner of an interest in real property who creates a

deed pursuant to subsection 1 may designate in the deed:

(a) Multiple grantees who will take title to the property upon

his death as joint tenants with right of survivorship, tenants in

common, husband and wife as community property, community

property with right of survivorship or any other tenancy that is

recognized in this state.

(b) A successor in interest to the grantee. If a successor in

interest is designated, the deed must include a provision stating the

condition precedent for the interest of the successor to vest.

3. If the owner of the real property which is the subject of a

deed created pursuant to subsection 1 holds the interest in the

property as a joint tenant with right of survivorship or as

community property with the right of survivorship and:

(a) The deed includes a conveyance of the interest from each

of the other owners, the deed becomes effective on the date of the

death of the last surviving owner; or

(b) The deed does not include a conveyance of the interest

from each of the other owners, the deed becomes effective on the

date of the death of the owner who created the deed only if the

owner who conveyed his interest in real property to the grantee is

the last surviving owner.

4. If an owner of an interest in real property who creates a

deed pursuant to subsection 1 transfers his interest in the real

property to another person during his lifetime, the deed created

pursuant to subsection 1 is void.

5. The provisions of this section must not be construed to

limit the recovery of benefits paid for Medicaid.

Sec. 2. NRS 133.055 is hereby amended to read as follows:

133.055 A signature affixed to a self-proving affidavit or a

self-proving declaration that is attached to a will and executed at

the same time as the will is considered a signature affixed to the will

if necessary to prove the execution of the will.

Sec. 3. Chapter 134 of NRS is hereby amended by adding

thereto a new section to read as follows:

If any person dies leaving several children, or leaving a child

and issue of one or more children, and any such surviving child

dies under age, without issue and not having been married, all the

estate that came to the deceased child by inheritance from the

deceased parent descends in equal shares to the other children of

the same parent, and to the issue of any other children of the same

parent who may have died, by right of representation.

Sec. 4. NRS 134.030 is hereby amended to read as follows:

134.030 If a decedent dies intestate and has title to any estate

which is the separate property of the decedent and which is not

otherwise limited by contract, the estate descends and must be

distributed, subject to the payment of the debts of the decedent, in

the manner provided in NRS 134.040 to 134.120, inclusive[.] , and

section 3 of this act.

Sec. 5. NRS 134.080 is hereby amended to read as follows:

134.080 [1.] At the death of a child who is under age, who is

without issue and who has not been married, all the other children of

the parent being also dead, if any of the other children left issue, the

estate that came to the child by inheritance from the parent descends

to all the issue of the other children of the same parent, and if all the

issue are in the same degree of kindred to the child, they are entitled

to share the estate equally; otherwise, they are entitled to take

according to the right of representation.

[2. If any person dies leaving several children, or leaving a

child and issue of one or more children, and any such surviving

child dies under age, without issue and not having been married, all

the estate that came to the deceased child by inheritance from the

deceased parent descends in equal shares to the other children of the

same parent, and to the issue of any other children of the same

parent who may have died, by right of representation.]

Sec. 6. NRS 136.170 is hereby amended to read as follows:

136.170 1. If it appears to the court that a will cannot be

proven as otherwise provided by law because one or more or all the

subscribing witnesses to the will, at the time the will is offered for

probate, are dead or mentally or physically incapable of testifying or

otherwise unavailable, the court may admit the will to probate upon

the testimony in person, by deposition or by affidavit of at least two

credible disinterested [witnesses] persons that the signature to the

will is genuine, or upon other sufficient proof that the signature is

genuine.

2. The provisions of subsection 1 do not preclude the court, in

its discretion, from requiring in addition, the testimony in person, by

deposition or by affidavit of any available subscribing witness, or

proof of such other pertinent facts and circumstances as the court

deems necessary to admit the will to probate.

Sec. 7. NRS 138.020 is hereby amended to read as follows:

138.020 1. No person is qualified to serve as an executor

who, at the time the will is probated:

(a) Is under the age of majority;

(b) Has been convicted of a felony;

the duties of executor by reason of conflict of interest, drunkenness,

improvidence or lack of integrity or understanding; or

(d) Is a bank not authorized to do business in the State of

Nevada, unless it associates as coexecutor a bank authorized to do

business in this state. An out-of-state bank is qualified to appoint a

substitute executor, pursuant to NRS 138.045, without forming such

an association, but any natural person so appointed must be a

resident of this state.

2. If a disqualified person is named as the sole executor in a

will, or if all persons so named are disqualified or renounce their

right to act, or fail to appear and qualify, letters of administration

with the will annexed must issue.

Sec. 8. NRS 141.045 is hereby amended to read as follows:

141.045 Letters of special administration may be in

substantially the following form, after properly entitling the court:

In the Matter of the Estate of )

) Case No.

)

deceased. ) Letters of Special Administration

................................... )

On ……… (day) …… (month) ……. (year), the court entered an

order [admitting the decedent’s will to probate and] appointing

(name) as special administrator of the decedent’s estate. The

order includes:

[ ] a directive for the establishment of a blocked account for

sums in excess of $……….;

[ ] a directive for the posting of a bond in the sum of $……….;

[ ] a directive for both the establishment of a blocked account

for sums in excess of $ ………. and the posting of a bond in the sum

of $……….....

The special administrator, after being duly qualified, may act and

has the authority and duties of special administrator.

In testimony of which, I have this date signed these letters and

affixed the seal of the court.

CLERK OF THE COURT

By ……………………….

Deputy Clerk (date)

OATH

I, ………………………………………………………, whose

mailing address is …………………………………………….,

solemnly affirm that I will faithfully perform according to law the

duties of special administrator, and that all matters stated in any

petition or paper filed with the court by me are true of my own

knowledge or, if any matters are stated on information and belief, I

believe them to be true.

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

Special Administrator

SUBSCRIBED AND AFFIRMED before me this ….…. (day) of

….…. (month) of ……… (year).

CLERK OF COURT

By .................................

Deputy Clerk

(or) ...............................

NOTARY PUBLIC

County of ……… State of

Sec. 9. NRS 141.090 is hereby amended to read as follows:

141.090 If a court has reason to believe, from its own

knowledge or from credible information, that a personal

representative:

1. Has wasted, converted to the personal representative’s own

use or mismanaged, or is about to waste or convert to the personal

representative’s own use, the property of the estate committed to the

personal representative’s charge;

2. Has committed or is about to commit any wrong or fraud

upon the estate;

3. Has become disqualified to act;

4. Has wrongfully neglected the estate; [or]

5. Has a conflict of interest with the estate; or

6. Has unreasonably delayed the performance of necessary acts

in any particular as personal representative,

the court may, by an order entered upon the minutes, suspend the

powers of the personal representative until the matter can be

investigated, or take such other action as it deems appropriate under

the circumstances.

Sec. 10. NRS 143.065 is hereby amended to read as follows:

143.065 A statute of limitations running on a cause of action

belonging to a decedent, that was not barred as of the date of death,

does not bar the cause of action sooner than [4 months] 1 year after

the death. A cause of action that, but for this section, would be

barred less than [4 months] 1 year after the death of the decedent is

barred after [4 months] 1 year unless the running of the statute is

tolled under other law.

Sec. 11. NRS 143.120 is hereby amended to read as follows:

143.120 1. If the person so cited refuses to appear and submit

to examination or to testify concerning the matter of the complaint,

the court may commit the person to the county jail, there to remain

confined until the person obeys the order of the court or is

discharged according to law.

2. If, upon examination, it appears that the person has

concealed, converted, smuggled, conveyed away, or in any manner

disposed of any money, goods or chattels of the decedent, or that the

person has possession or control of any deeds, conveyances, bonds,

contracts or other writings which contain evidence of, or tend to

disclose the right, title, interest or claim of the decedent to any real

or personal property, claim or demand, or any last will of the

decedent, the court may enter an order requiring the person to

deliver any such property or effects to the personal representative at

such time as the court may fix. If the person fails to comply with the

order, the court may commit the person to the county jail until the

order is complied with or the person is discharged according to law.

3. The order of the court for the delivery of the property is

prima facie evidence of the right of the personal representative to

the property in any action that may be brought for its recovery, and

any judgment recovered must be for [double the value of the

property, and damages in addition thereto equal to] treble damages

equal to three times the value of the property.

4. In addition to the examination of the party, witnesses may be

produced and examined on either side.

Sec. 12. 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] 15 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 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. 13. 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,] $75,000, 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,] $75,000, 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. 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,] $75,000, 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. 14. Chapter 147 of NRS is hereby amended by adding

thereto a new section to read as follows:

The debts and charges of the estate must be paid in the

following order:

1. Expenses of administration.

2. Funeral expenses.

3. The expenses of the last illness.

4. Family allowance.

5. Debts having preference by laws of the United States.

6. Money owed to the Department of Human Resources as a

result of the payment of benefits for Medicaid.

7. Wages 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. If there is not sufficient

money with which to pay all such labor claims in full, the money

available must be distributed among the claimants in accordance

with the amounts of their respective claims.

8. Judgments rendered against the decedent in his lifetime,

and mortgages in order of their date. The preference given to a

mortgage extends only to the proceeds of the property mortgaged.

If the proceeds of that property are insufficient to pay the

mortgage, the part remaining unsatisfied must be classed with

other demands against the estate.

9. All other demands against the estate.

Sec. 15. Chapter 148 of NRS is hereby amended by adding

thereto the provisions set forth as sections 16 and 17 of this act.

Sec. 16. 1. The personal representative may enter into a

written contract with any bona fide agent, broker, or multiple

group of agents or brokers to secure a purchaser for any personal

property of the estate, and by that contract, the personal

representative may grant an exclusive right to sell and shall

provide for the payment to the agent, broker, or multiple group of

agents or brokers, out of the proceeds of a sale to any purchaser

secured pursuant to the contract, of a commission, the amount of

which must be fixed and allowed by the court upon confirmation

of the sale. If the sale is confirmed to the purchaser, the contract

is binding and valid as against the estate for the amount so

allowed by the court.

2. By the execution of any such contract, no personal liability

is incurred by the personal representative, and no liability of any

kind is incurred by the estate unless a sale is made and confirmed

by the court.

3. The commission must not exceed 10 percent of the

proceeds from the sale of any personal property pursuant to this

section.

Sec. 17. 1. Except as otherwise provided in subsection 2, no

sale of personal property at private sale may be confirmed by the

court unless the court is satisfied that the sum offered represents

the fair market value of the property sold, nor unless the personal

property has been appraised within 1 year before the time of sale.

If it has not been appraised, a new appraisement must be had, as

in the case of an original appraisement of personal property. This

may be done at any time before the sale or confirmation thereof.

2. If the personal representative is the sole devisee or heir of

the estate, or if all devisees or heirs consent in writing to sale

without an appraisal, the requirement of an appraisal may be

dispensed with.

Sec. 18. NRS 148.190 is hereby amended to read as follows:

148.190 1. Except as otherwise provided in subsection 3 and

NRS 148.080, 148.170 and 148.180 and in summary administration

under chapter 145 of NRS, a personal representative may sell

personal property of the estate only after notice is published in a

newspaper published in the county where the proceedings are

pending, if there is such a newspaper, and if not, then in one having

general circulation in the county, for 2 weeks, consisting of three

publications 1 week apart, before the day of the sale or, in the case

of a private sale, before the day on or after which the sale is to be

made. For good cause shown, the court may decrease the number of

publications to one and shorten the time for publication to a period

not less than 8 days. The notice shall include a brief description of

the property to be sold, a place where bids or offers will be received,

and a day on or after which the sale will be made.

2. Public sales may be made at the courthouse door, at some

other public place, at the residence of the decedent or at a place

designated by the personal representative, but no sale may be made

of any personal property which is not available for inspection at the

time of sale, unless the court otherwise orders.

3. If the personal representative is the sole devisee or heir of

the estate, or if all devisees or heirs of the estate consent in

writing, the court may waive the requirement of publication.

Sec. 19. NRS 150.010 is hereby amended to read as follows:

150.010 The personal representative must be allowed all

necessary expenses in the administration and settlement of the

estate, and fees for services as provided by law, but if the decedent

by will makes some other provision for the compensation of the

personal representative, this shall be deemed a full compensation for

those services, unless within 60 days after his appointment the

personal representative files a renunciation, in writing, of all claim

for the compensation provided by the will.

Sec. 20. Chapter 151 of NRS is hereby amended by adding

thereto the provisions set forth as sections 21 and 22 of this act.

Sec. 21. No gift or grant by the decedent shall be deemed to

have been made as satisfaction of a testamentary gift unless:

1. So expressed in the instrument providing for the gift or

grant;

2. Charged in a writing by the decedent as partial or complete

satisfaction of a testamentary gift; or

3. Acknowledged in writing by the donee to be such.

Sec. 22. If the value of the gift is expressed in the instrument

providing for the gift or grant, or in a writing of the decedent, or

in an acknowledgment of the donee, that value must be used in the

distribution and division of the estate. Otherwise, the gift or grant

must be valued as of the time the donee came into possession or

enjoyment of the property or as of the time of death of the

decedent, whichever occurs first.

Sec. 23. NRS 159.197 is hereby amended to read as follows:

159.197 1. 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 [$50,000,] $75,000, or as authorized by NRS 146.080, if the

gross value of the property remaining in the hands of the guardian

does not exceed $20,000.

Sec. 24. NRS 253.0403 is hereby amended to read as follows:

253.0403 1. When the gross value of a decedent’s property

situated in this state does not exceed $5,000, a public administrator

may, without procuring letters of administration, administer the

estate of that person upon filing with the court an affidavit of his

right to do so.

2. The affidavit must provide:

(a) The public administrator’s name and address, and his

attestation that he is entitled by law to administer the estate;

(b) The decedent’s place of residence at the time of his death;

does not exceed $5,000;

(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 this state;

(f) A description of the personal property of the decedent;

(g) Whether there are any heirs or next of kin known to the

affiant, and if known, the name and address of each such person;

(h) If heirs or next of kin are known to the affiant, a description

of the method of service he used to provide to each of them notice

of the affidavit and that at least 10 days have elapsed since the

notice was provided;

(i) That all debts of the decedent, including funeral and burial

expenses, have been paid or provided for; and

(j) The name of each person to whom the affiant intends to

distribute the decedent’s property.

3. Before filing the affidavit with the court, the public

administrator shall take reasonable steps to ascertain whether any of

the decedent’s heirs or next of kin exist. If the administrator

determines that heirs or next of kin exist, he shall serve each of them

with a copy of the affidavit. Service must be made personally or by

certified mail.

4. 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 or distributes is subject to

all debts of the decedent, based on the priority for payment of debts

and charges specified in [NRS 150.220.] section 14 of this act.

(b) Fails to give notice to heirs or next of kin as required by

subsection 3, any money or property he holds or distributes to others

shall be deemed to be held in trust for those heirs and next of kin

who did not receive notice and have an interest in the property.

5. 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.

6. Upon receiving proof of the death of the decedent, an

affidavit containing the information required by this section and the

written approval of the public administrator to do so:

(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.

Sec. 25. NRS 360.480 is hereby amended to read as follows:

360.480 1. The amounts, including interest and penalties,

required to be paid by any person under this title shall be satisfied

first in any of the following cases:

(a) Whenever the person is insolvent.

(b) Whenever the person makes a voluntary assignment of his

assets.

administrators or heirs, prior to distribution, is insufficient to pay all

the debts due from the deceased.

(d) Whenever the estate and effects of an absconding, concealed

or absent person required to pay any amount by force of such a

revenue act are levied upon by process of law.

2. This section does not give the State a preference over:

(a) Any recorded lien which attached prior to the date when the

amounts required to be paid became a lien; or

(b) Any costs of administration, funeral expenses, expenses of

personal illness, family allowances or debts preferred under federal

law or wages as provided in [NRS 150.220.] section 14 of this act.

Sec. 26. NRS 360A.090 is hereby amended to read as follows:

360A.090 1. The amounts, including interest and penalties,

required to be paid by a person pursuant to chapter 365, 366 or 373

of NRS or NRS 590.120 or 590.840 must be satisfied first if:

(a) The person is insolvent;

(b) The person makes a voluntary assignment of his assets;

administrators or heirs, before distribution, is insufficient to pay all

the debts due from the deceased; or

(d) The estate and effects of an absconding, concealed or absent

person required to pay any amount by force of such a revenue act

are levied upon by process of law.

2. This section does not give the State of Nevada a preference

over:

(a) Any recorded lien that attached before the date when the

amounts required to be paid became a lien; or

(b) Any costs of administration, funeral expenses, expenses of

personal illness, family allowances or debts preferred pursuant to

federal law or wages as provided in [NRS 150.220.] section 14 of

this act.

Sec. 27. NRS 375.220 is hereby amended to read as follows:

375.220 1. The amounts, including interest and penalties,

required to be paid by any person pursuant to this chapter must be

satisfied first if:

(a) The person is insolvent;

(b) The person makes a voluntary assignment of his assets;

administrators or heirs, before distribution, is insufficient to pay all

the debts due from the deceased; or

(d) The estate and effects of an absconding, concealed or absent

person required to pay any amount by force of such a revenue act

are levied upon by process of law.

2. This section does not give the county recorder a preference

over:

(a) Any recorded lien that attached before the date when the

amounts required to be paid became a lien; or

(b) Any costs of administration, funeral expenses, expenses of

personal illness, family allowances or debts preferred pursuant to

federal law or wages as provided in [NRS 150.220.] section 14 of

this act.

Sec. 28. NRS 150.220 is hereby repealed.

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