Senate Bill No. 207–Committee on Judiciary

 

February 25, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes concerning conveyances of property and wills and estates. (BDR 10‑940)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

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:

 

1-1  Section 1. Chapter 111 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  The owner of an interest in real property may create a deed

1-4  that conveys his interest in real property to a grantee which

1-5  becomes effective upon the death of the owner. Such a conveyance

1-6  is subject to liens on the property in existence on the date of the

1-7  death of the owner.

1-8  2.  The owner of an interest in real property who creates a

1-9  deed pursuant to subsection 1 may designate in the deed:

1-10      (a) Multiple grantees who will take title to the property upon

1-11  his death as joint tenants with right of survivorship, tenants in

1-12  common, husband and wife as community property, community

2-1  property with right of survivorship or any other tenancy that is

2-2  recognized in this state.

2-3  (b) A successor in interest to the grantee. If a successor in

2-4  interest is designated, the deed must include a provision stating the

2-5  condition precedent for the interest of the successor to vest.

2-6  3.  If the owner of the real property which is the subject of a

2-7  deed created pursuant to subsection 1 holds the interest in the

2-8  property as a joint tenant with right of survivorship or as

2-9  community property with the right of survivorship and:

2-10      (a) The deed includes a conveyance of the interest from each

2-11  of the other owners, the deed becomes effective on the date of the

2-12  death of the last surviving owner; or

2-13      (b) The deed does not include a conveyance of the interest

2-14  from each of the other owners, the deed becomes effective on the

2-15  date of the death of the owner who created the deed only if the

2-16  owner who conveyed his interest in real property to the grantee is

2-17  the last surviving owner.

2-18      4.  If an owner of an interest in real property who creates a

2-19  deed pursuant to subsection 1 transfers his interest in the real

2-20  property to another person during his lifetime, the deed created

2-21  pursuant to subsection 1 is void.

2-22      Sec. 2.  NRS 133.055 is hereby amended to read as follows:

2-23      133.055  A signature affixed to a self-proving affidavit or a

2-24  self-proving declaration that is attached to a will and executed at

2-25  the same time as the will is considered a signature affixed to the will

2-26  if necessary to prove the execution of the will.

2-27      Sec. 3.  Chapter 134 of NRS is hereby amended by adding

2-28  thereto a new section to read as follows:

2-29      If any person dies leaving several children, or leaving a child

2-30  and issue of one or more children, and any such surviving child

2-31  dies under age, without issue and not having been married, all the

2-32  estate that came to the deceased child by inheritance from the

2-33  deceased parent descends in equal shares to the other children of

2-34  the same parent, and to the issue of any other children of the same

2-35  parent who may have died, by right of representation.

2-36      Sec. 4.  NRS 134.030 is hereby amended to read as follows:

2-37      134.030  If a decedent dies intestate and has title to any estate

2-38  which is the separate property of the decedent and which is not

2-39  otherwise limited by contract, the estate descends and must be

2-40  distributed, subject to the payment of the debts of the decedent, in

2-41  the manner provided in NRS 134.040 to 134.120, inclusive[.] , and

2-42  section 3 of this act.

2-43      Sec. 5.  NRS 134.080 is hereby amended to read as follows:

2-44      134.080  [1.] At the death of a child who is under age, who is

2-45  without issue and who has not been married, all the other children of

3-1  the parent being also dead, if any of the other children left issue, the

3-2  estate that came to the child by inheritance from the parent descends

3-3  to all the issue of the other children of the same parent, and if all the

3-4  issue are in the same degree of kindred to the child, they are entitled

3-5  to share the estate equally; otherwise, they are entitled to take

3-6  according to the right of representation.

3-7  [2.  If any person dies leaving several children, or leaving a

3-8  child and issue of one or more children, and any such surviving

3-9  child dies under age, without issue and not having been married, all

3-10  the estate that came to the deceased child by inheritance from the

3-11  deceased parent descends in equal shares to the other children of the

3-12  same parent, and to the issue of any other children of the same

3-13  parent who may have died, by right of representation.]

3-14      Sec. 6.  NRS 136.170 is hereby amended to read as follows:

3-15      136.170  1.  If it appears to the court that a will cannot be

3-16  proven as otherwise provided by law because one or more or all the

3-17  subscribing witnesses to the will, at the time the will is offered for

3-18  probate, are dead or mentally or physically incapable of testifying or

3-19  otherwise unavailable, the court may admit the will to probate upon

3-20  the testimony in person, by deposition or by affidavit of at least two

3-21  credible disinterested [witnesses] persons that the signature to the

3-22  will is genuine, or upon other sufficient proof that the signature is

3-23  genuine.

3-24      2.  The provisions of subsection 1 do not preclude the court, in

3-25  its discretion, from requiring in addition, the testimony in person, by

3-26  deposition or by affidavit of any available subscribing witness, or

3-27  proof of such other pertinent facts and circumstances as the court

3-28  deems necessary to admit the will to probate.

3-29      Sec. 7.  NRS 138.020 is hereby amended to read as follows:

3-30      138.020  1.  No person is qualified to serve as an executor

3-31  who, at the time the will is probated:

3-32      (a) Is under the age of majority;

3-33      (b) Has been convicted of a felony;

3-34      (c) Upon proof, is adjudged by the court disqualified to execute

3-35  the duties of executor by reason of conflict of interest, drunkenness,

3-36  improvidence or lack of integrity or understanding; or

3-37      (d) Is a bank not authorized to do business in the State of

3-38  Nevada, unless it associates as coexecutor a bank authorized to do

3-39  business in this state. An out-of-state bank is qualified to appoint a

3-40  substitute executor, pursuant to NRS 138.045, without forming such

3-41  an association, but any natural person so appointed must be a

3-42  resident of this state.

3-43      2.  If a disqualified person is named as the sole executor in a

3-44  will, or if all persons so named are disqualified or renounce their

4-1  right to act, or fail to appear and qualify, letters of administration

4-2  with the will annexed must issue.

4-3  Sec. 8.  NRS 141.045 is hereby amended to read as follows:

4-4  141.045  Letters of special administration may be in

4-5  substantially the following form, after properly entitling the court:

 

4-6  In the Matter of the Estate of  )

4-7                                   )   Case No.

4-8                                   )

4-9  deceased.                 )   Letters of Special Administration

4-10  ............................... )

 

4-11      On ……… (day) …… (month) ……. (year), the court entered an

4-12  order [admitting the decedent’s will to probate and] appointing

4-13        (name)       as special administrator of the decedent’s estate. The

4-14  order includes:

4-15      [ ] a directive for the establishment of a blocked account for

4-16  sums in excess of $……….;

4-17      [ ] a directive for the posting of a bond in the sum of $……….;

4-18  or

4-19      [ ] a directive for both the establishment of a blocked account

4-20  for sums in excess of $ ………. and the posting of a bond in the sum

4-21  of $……….....

4-22      The special administrator, after being duly qualified, may act and

4-23  has the authority and duties of special administrator.

4-24      In testimony of which, I have this date signed these letters and

4-25  affixed the seal of the court.

 

4-26                                               CLERK OF THE COURT

4-27                                               By ……………………….

4-28                                               Deputy Clerk        (date)

 

4-29  OATH

4-30      I, ………………………………………………………, whose

4-31  mailing address is …………………………………………….,

4-32  solemnly affirm that I will faithfully perform according to law the

4-33  duties of special administrator, and that all matters stated in any

4-34  petition or paper filed with the court by me are true of my own

4-35  knowledge or, if any matters are stated on information and belief, I

4-36  believe them to be true.

4-37                                                                         ............................

4-38                                                   Special Administrator

 

4-39  SUBSCRIBED AND AFFIRMED before me this ….…. (day) of

4-40  ….…. (month) of ……… (year).

5-1                                        CLERK OF COURT

5-2                                        By .................................

5-3                                        Deputy Clerk

5-4                                        (or) ...............................

5-5                                        NOTARY PUBLIC

5-6                                        County of ……… State of

 

5-7  Sec. 9.  NRS 141.090 is hereby amended to read as follows:

5-8  141.090  If a court has reason to believe, from its own

5-9  knowledge or from credible information, that a personal

5-10  representative:

5-11      1.  Has wasted, converted to the personal representative’s own

5-12  use or mismanaged, or is about to waste or convert to the personal

5-13  representative’s own use, the property of the estate committed to the

5-14  personal representative’s charge;

5-15      2.  Has committed or is about to commit any wrong or fraud

5-16  upon the estate;

5-17      3.  Has become disqualified to act;

5-18      4.  Has wrongfully neglected the estate; [or]

5-19      5.  Has a conflict of interest with the estate; or

5-20      6.  Has unreasonably delayed the performance of necessary acts

5-21  in any particular as personal representative,

5-22  the court may, by an order entered upon the minutes, suspend the

5-23  powers of the personal representative until the matter can be

5-24  investigated, or take such other action as it deems appropriate under

5-25  the circumstances.

5-26      Sec. 10.  NRS 143.065 is hereby amended to read as follows:

5-27      143.065  A statute of limitations running on a cause of action

5-28  belonging to a decedent, that was not barred as of the date of death,

5-29  does not bar the cause of action sooner than [4 months] 1 year after

5-30  the death. A cause of action that, but for this section, would be

5-31  barred less than [4 months] 1 year after the death of the decedent is

5-32  barred after [4 months] 1 year unless the running of the statute is

5-33  tolled under other law.

5-34      Sec. 11.  NRS 143.120 is hereby amended to read as follows:

5-35      143.120  1.  If the person so cited refuses to appear and submit

5-36  to examination or to testify concerning the matter of the complaint,

5-37  the court may commit the person to the county jail, there to remain

5-38  confined until the person obeys the order of the court or is

5-39  discharged according to law.

5-40      2.  If, upon examination, it appears that the person has

5-41  concealed, converted, smuggled, conveyed away, or in any manner

5-42  disposed of any money, goods or chattels of the decedent, or that the

5-43  person has possession or control of any deeds, conveyances, bonds,

5-44  contracts or other writings which contain evidence of, or tend to

6-1  disclose the right, title, interest or claim of the decedent to any real

6-2  or personal property, claim or demand, or any last will of the

6-3  decedent, the court may enter an order requiring the person to

6-4  deliver any such property or effects to the personal representative at

6-5  such time as the court may fix. If the person fails to comply with the

6-6  order, the court may commit the person to the county jail until the

6-7  order is complied with or the person is discharged according to law.

6-8  3.  The order of the court for the delivery of the property is

6-9  prima facie evidence of the right of the personal representative to

6-10  the property in any action that may be brought for its recovery, and

6-11  any judgment recovered must be for [double the value of the

6-12  property, and damages in addition thereto equal to] treble damages

6-13  equal to three times the value of the property.

6-14      4.  In addition to the examination of the party, witnesses may be

6-15  produced and examined on either side.

6-16      Sec. 12.  NRS 145.060 is hereby amended to read as follows:

6-17      145.060  1.  A personal representative shall publish and mail

6-18  notice to creditors in the manner provided in NRS 155.020.

6-19      2.  Creditors of the estate must file their claims, due or to

6-20  become due, with the clerk, within 60 days after the mailing to the

6-21  creditors for those required to be mailed, or 60 days after the first

6-22  publication of the notice to creditors pursuant to NRS 155.020, and

6-23  within [10] 15 days thereafter the personal representative shall allow

6-24  or reject the claims filed.

6-25      3.  Any claim which is not filed within the 60 days is barred

6-26  forever, except that if it is made to appear, by the affidavit of the

6-27  claimant or by other proof to the satisfaction of the court, that the

6-28  claimant did not have notice as provided in NRS 155.020, the claim

6-29  may be filed at any time before the filing of the final account.

6-30      4.  Every claim which is filed as provided in this section and

6-31  allowed by the personal representative, must then, and not until

6-32  then, be ranked as an acknowledged debt of the estate and be paid in

6-33  the course of administration, except that payment of small debts in

6-34  advance may be made pursuant to subsection 3 of NRS 150.230.

6-35      5.  If a claim filed by the Welfare Division of the Department of

6-36  Human Resources is rejected by the personal representative, the

6-37  State Welfare Administrator may, within 20 days after receipt of the

6-38  written notice of rejection, petition the court for summary

6-39  determination of the claim. A petition for summary determination

6-40  must be filed with the clerk, who shall set the petition for hearing,

6-41  and the petitioner shall give notice for the period and in the manner

6-42  required by NRS 155.010. Allowance of the claim by the court is

6-43  sufficient evidence of its correctness, and it must be paid as if

6-44  previously allowed by the personal representative.

 

7-1  Sec. 13.  NRS 146.070 is hereby amended to read as follows:

7-2  146.070  1.  If a person dies leaving an estate the gross value

7-3  of which, after deducting any encumbrances, does not exceed

7-4  [$50,000,] $75,000, and there is a surviving spouse or minor child

7-5  or minor children of the decedent, the estate must not be

7-6  administered upon, but the whole estate, after directing such

7-7  payments as may be deemed just, must be, by an order for that

7-8  purpose, assigned and set apart for the support of the surviving

7-9  spouse or minor child or minor children, or for the support of the

7-10  minor child or minor children, if there is no surviving spouse. Even

7-11  if there is a surviving spouse, the court may, after directing such

7-12  payments, set aside the whole of the estate to the minor child or

7-13  minor children, if it is in their best interests.

7-14      2.  If there is no surviving spouse or minor child of the decedent

7-15  and the gross value of a decedent’s estate, after deducting any

7-16  encumbrances, does not exceed [$50,000,] $75,000, upon good

7-17  cause shown, the court shall order that the estate not be administered

7-18  upon, but the whole estate be assigned and set apart in the following

7-19  order:

7-20      (a) To the payment of funeral expenses, expenses of last illness,

7-21  money owed to the Department of Human Resources as a result of

7-22  payment of benefits for Medicaid and creditors, if there are any; and

7-23      (b) Any balance remaining to the claimant or claimants entitled

7-24  thereto pursuant to a valid will of the decedent, and if there is no

7-25  valid will, pursuant to intestate succession.

7-26      3.  Proceedings taken under this section, whether or not the

7-27  decedent left a valid will, must not begin until at least 30 days after

7-28  the death of the decedent and must be originated by a petition

7-29  containing:

7-30      (a) A specific description of all the decedent’s property.

7-31      (b) A list of all the liens and mortgages of record at the date of

7-32  the decedent’s death.

7-33      (c) An estimate of the value of the property.

7-34      (d) A statement of the debts of the decedent so far as known to

7-35  the petitioner.

7-36      (e) The names and residences of the heirs and devisees of the

7-37  decedent and the age of any who is a minor and the relationship of

7-38  the heirs and devisees to the decedent, so far as known to the

7-39  petitioner.

7-40      4.  The clerk shall set the petition for hearing and the petitioner

7-41  shall give notice of the petition and hearing in the manner provided

7-42  in NRS 155.010 to the decedent’s heirs and devisees and to the State

7-43  Welfare Administrator. If a complete copy of the petition is not

7-44  enclosed with the notice, the notice must include a statement setting

7-45  forth to whom the estate is being set aside.

8-1  5.  No court or clerk’s fees may be charged for the filing of any

8-2  petition in, or order of court thereon, or for any certified copy of the

8-3  petition or order in an estate not exceeding $2,500 in value.

8-4  6.  If the court finds that the gross value of the estate, less

8-5  encumbrances, does not exceed the sum of [$50,000,] $75,000, the

8-6  court may direct that the estate be distributed to the father or mother

8-7  of a minor heir or devisee, with or without the filing of any bond, or

8-8  to a custodian under chapter 167 of NRS, or may require that a

8-9  general guardian be appointed and that the estate be distributed to

8-10  the guardian, with or without bond, as in the discretion of the court

8-11  is deemed to be in the best interests of the minor. The court may

8-12  direct the manner in which the money may be used for the benefit of

8-13  the minor.

8-14      Sec. 14.  Chapter 147 of NRS is hereby amended by adding

8-15  thereto a new section to read as follows:

8-16      The debts and charges of the estate must be paid in the

8-17  following order:

8-18      1.  Expenses of administration.

8-19      2.  Funeral expenses.

8-20      3.  The expenses of the last illness.

8-21      4.  Family allowance.

8-22      5.  Debts having preference by laws of the United States.

8-23      6.  Money owed to the Department of Human Resources as a

8-24  result of the payment of benefits for Medicaid.

8-25      7.  Wages to the extent of $600, of each employee of the

8-26  decedent, for work done or personal services rendered within 3

8-27  months before the death of the employer. If there is not sufficient

8-28  money with which to pay all such labor claims in full, the money

8-29  available must be distributed among the claimants in accordance

8-30  with the amounts of their respective claims.

8-31      8.  Judgments rendered against the decedent in his lifetime,

8-32  and mortgages in order of their date. The preference given to a

8-33  mortgage extends only to the proceeds of the property mortgaged.

8-34  If the proceeds of that property are insufficient to pay the

8-35  mortgage, the part remaining unsatisfied must be classed with

8-36  other demands against the estate.

8-37      9.  All other demands against the estate.

8-38      Sec. 15.  Chapter 148 of NRS is hereby amended by adding

8-39  thereto the provisions set forth as sections 16 and 17 of this act.

8-40      Sec. 16.  1.  The personal representative may enter into a

8-41  written contract with any bona fide agent, broker, or multiple

8-42  group of agents or brokers to secure a purchaser for any personal

8-43  property of the estate, and by that contract, the personal

8-44  representative may grant an exclusive right to sell and shall

8-45  provide for the payment to the agent, broker, or multiple group of

9-1  agents or brokers, out of the proceeds of a sale to any purchaser

9-2  secured pursuant to the contract, of a commission, the amount of

9-3  which must be fixed and allowed by the court upon confirmation

9-4  of the sale. If the sale is confirmed to the purchaser, the contract

9-5  is binding and valid as against the estate for the amount so

9-6  allowed by the court.

9-7  2.  By the execution of any such contract, no personal liability

9-8  is incurred by the personal representative, and no liability of any

9-9  kind is incurred by the estate unless a sale is made and confirmed

9-10  by the court.

9-11      3.  The commission must not exceed 10 percent of the

9-12  proceeds from the sale of any personal property pursuant to this

9-13  section.

9-14      Sec. 17.  1.  Except as otherwise provided in subsection 2, no

9-15  sale of personal property at private sale may be confirmed by the

9-16  court unless the court is satisfied that the sum offered represents

9-17  the fair market value of the property sold, nor unless the personal

9-18  property has been appraised within 1 year before the time of sale.

9-19  If it has not been appraised, a new appraisement must be had, as

9-20  in the case of an original appraisement of personal property. This

9-21  may be done at any time before the sale or confirmation thereof.

9-22      2.  If the personal representative is the sole devisee or heir of

9-23  the estate, or if all devisees or heirs consent in writing to sale

9-24  without an appraisal, the requirement of an appraisal may be

9-25  dispensed with.

9-26      Sec. 18.  NRS 148.190 is hereby amended to read as follows:

9-27      148.190  1.  Except as otherwise provided in subsection 3 and

9-28  in NRS 148.080, 148.170 and 148.180 and in summary

9-29  administration under chapter 145 of NRS, a personal representative

9-30  may sell personal property of the estate only after notice is

9-31  published in a newspaper published in the county where the

9-32  proceedings are pending, if there is such a newspaper, and if not,

9-33  then in one having general circulation in the county, for 2 weeks,

9-34  consisting of three publications 1 week apart, before the day of the

9-35  sale or, in the case of a private sale, before the day on or after which

9-36  the sale is to be made. For good cause shown, the court may

9-37  decrease the number of publications to one and shorten the time for

9-38  publication to a period not less than 8 days. The notice shall include

9-39  a brief description of the property to be sold, a place where bids or

9-40  offers will be received, and a day on or after which the sale will be

9-41  made.

9-42      2.  Public sales may be made at the courthouse door, at some

9-43  other public place, at the residence of the decedent or at a place

9-44  designated by the personal representative, but no sale may be made

10-1  of any personal property which is not available for inspection at the

10-2  time of sale, unless the court otherwise orders.

10-3      3.  If the personal representative is the sole devisee or heir of

10-4  the estate, or if all devisees or heirs of the estate consent in writing

10-5  and prior to the appointment of the personal representative, the

10-6  court may waive the requirement of publication.

10-7      Sec. 19.  NRS 150.010 is hereby amended to read as follows:

10-8      150.010  The personal representative must be allowed all

10-9  necessary expenses in the administration and settlement of the

10-10  estate, and fees for services as provided by law, but if the decedent

10-11  by will makes some other provision for the compensation of the

10-12  personal representative, this shall be deemed a full compensation for

10-13  those services, unless before his appointment the personal

10-14  representative files a renunciation, in writing, of all claim for the

10-15  compensation provided by the will.

10-16     Sec. 20.  Chapter 151 of NRS is hereby amended by adding

10-17  thereto the provisions set forth as sections 21 and 22 of this act.

10-18     Sec. 21.  No gift or grant by the decedent shall be deemed to

10-19  have been made as satisfaction of a testamentary gift unless:

10-20     1.  So expressed in the instrument providing for the gift or

10-21  grant;

10-22     2.  Charged in a writing, contemporaneous to the gift or

10-23  grant, by the decedent as partial or complete satisfaction of a

10-24  testamentary gift; or

10-25     3.  Acknowledged in writing by the donee to be such.

10-26     Sec. 22.  If the value of the gift is expressed in the instrument

10-27  providing for the gift or grant, or in the contemporaneous writing

10-28  of the decedent, or in an acknowledgment of the donee, that value

10-29  must be used in the distribution and division of the estate.

10-30  Otherwise, the gift or grant must be valued as of the time the

10-31  donee came into possession or enjoyment of the property or as of

10-32  the time of death of the decedent, whichever occurs first.

10-33     Sec. 23.  NRS 159.197 is hereby amended to read as follows:

10-34     159.197  1.  After the winding up of the affairs of the

10-35  guardianship, the guardian shall deliver physical possession of all of

10-36  the ward’s property to the ward, his executor or administrator or the

10-37  successor guardian, as the case may be, and obtain a receipt

10-38  therefor.

10-39     2.  If the guardianship has terminated by reason of the death of

10-40  the ward, the court, by order, may authorize the guardian to

10-41  distribute the deceased ward’s property in the same manner as

10-42  authorized by NRS 146.070, if the gross value of the property, less

10-43  encumbrances, remaining in the hands of the guardian does not

10-44  exceed [$50,000,] $75,000, or as authorized by NRS 146.080, if the

11-1  gross value of the property remaining in the hands of the guardian

11-2  does not exceed $20,000.

11-3      Sec. 24.  NRS 253.0403 is hereby amended to read as follows:

11-4      253.0403  1.  When the gross value of a decedent’s property

11-5  situated in this state does not exceed $5,000, a public administrator

11-6  may, without procuring letters of administration, administer the

11-7  estate of that person upon filing with the court an affidavit of his

11-8  right to do so.

11-9      2.  The affidavit must provide:

11-10     (a) The public administrator’s name and address, and his

11-11  attestation that he is entitled by law to administer the estate;

11-12     (b) The decedent’s place of residence at the time of his death;

11-13     (c) That the gross value of the decedent’s property in this state

11-14  does not exceed $5,000;

11-15     (d) That at least 40 days have elapsed since the death of the

11-16  decedent;

11-17     (e) That no application or petition for the appointment of a

11-18  personal representative is pending or has been granted in this state;

11-19     (f) A description of the personal property of the decedent;

11-20     (g) Whether there are any heirs or next of kin known to the

11-21  affiant, and if known, the name and address of each such person;

11-22     (h) If heirs or next of kin are known to the affiant, a description

11-23  of the method of service he used to provide to each of them notice

11-24  of the affidavit and that at least 10 days have elapsed since the

11-25  notice was provided;

11-26     (i) That all debts of the decedent, including funeral and burial

11-27  expenses, have been paid or provided for; and

11-28     (j) The name of each person to whom the affiant intends to

11-29  distribute the decedent’s property.

11-30     3.  Before filing the affidavit with the court, the public

11-31  administrator shall take reasonable steps to ascertain whether any of

11-32  the decedent’s heirs or next of kin exist. If the administrator

11-33  determines that heirs or next of kin exist, he shall serve each of them

11-34  with a copy of the affidavit. Service must be made personally or by

11-35  certified mail.

11-36     4.  If the affiant:

11-37     (a) Submits an affidavit which does not meet the requirements

11-38  of subsection 2 or which contains statements which are not entirely

11-39  true, any money or property he receives or distributes is subject to

11-40  all debts of the decedent, based on the priority for payment of debts

11-41  and charges specified in [NRS 150.220.] section 14 of this act.

11-42     (b) Fails to give notice to heirs or next of kin as required by

11-43  subsection 3, any money or property he holds or distributes to others

11-44  shall be deemed to be held in trust for those heirs and next of kin

11-45  who did not receive notice and have an interest in the property.

12-1      5.  A person who receives an affidavit containing the

12-2  information required by subsection 2 is entitled to rely upon such

12-3  information, and if he relies in good faith, he is immune from civil

12-4  liability for actions based on that reliance.

12-5      6.  Upon receiving proof of the death of the decedent, an

12-6  affidavit containing the information required by this section and the

12-7  written approval of the public administrator to do so:

12-8      (a) A transfer agent of any security shall change the registered

12-9  ownership of the security claimed from the decedent to the person

12-10  claiming to succeed to ownership of that security.

12-11     (b) A governmental agency required to issue certificates of

12-12  ownership or registration to personal property shall issue a new

12-13  certificate of ownership or registration to the person claiming to

12-14  succeed to ownership of the property.

12-15     Sec. 25.  NRS 360.480 is hereby amended to read as follows:

12-16     360.480  1.  The amounts, including interest and penalties,

12-17  required to be paid by any person under this title shall be satisfied

12-18  first in any of the following cases:

12-19     (a) Whenever the person is insolvent.

12-20     (b) Whenever the person makes a voluntary assignment of his

12-21  assets.

12-22     (c) Whenever the estate of the person in the hands of executors,

12-23  administrators or heirs, prior to distribution, is insufficient to pay all

12-24  the debts due from the deceased.

12-25     (d) Whenever the estate and effects of an absconding, concealed

12-26  or absent person required to pay any amount by force of such a

12-27  revenue act are levied upon by process of law.

12-28     2.  This section does not give the State a preference over:

12-29     (a) Any recorded lien which attached prior to the date when the

12-30  amounts required to be paid became a lien; or

12-31     (b) Any costs of administration, funeral expenses, expenses of

12-32  personal illness, family allowances or debts preferred under federal

12-33  law or wages as provided in [NRS 150.220.] section 14 of this act.

12-34     Sec. 26.  NRS 360A.090 is hereby amended to read as follows:

12-35     360A.090  1.  The amounts, including interest and penalties,

12-36  required to be paid by a person pursuant to chapter 365, 366 or 373

12-37  of NRS or NRS 590.120 or 590.840 must be satisfied first if:

12-38     (a) The person is insolvent;

12-39     (b) The person makes a voluntary assignment of his assets;

12-40     (c) The estate of the person in the hands of executors,

12-41  administrators or heirs, before distribution, is insufficient to pay all

12-42  the debts due from the deceased; or

12-43     (d) The estate and effects of an absconding, concealed or absent

12-44  person required to pay any amount by force of such a revenue act

12-45  are levied upon by process of law.

13-1      2.  This section does not give the State of Nevada a preference

13-2  over:

13-3      (a) Any recorded lien that attached before the date when the

13-4  amounts required to be paid became a lien; or

13-5      (b) Any costs of administration, funeral expenses, expenses of

13-6  personal illness, family allowances or debts preferred pursuant to

13-7  federal law or wages as provided in [NRS 150.220.] section 14 of

13-8  this act.

13-9      Sec. 27.  NRS 375.220 is hereby amended to read as follows:

13-10     375.220  1.  The amounts, including interest and penalties,

13-11  required to be paid by any person pursuant to this chapter must be

13-12  satisfied first if:

13-13     (a) The person is insolvent;

13-14     (b) The person makes a voluntary assignment of his assets;

13-15     (c) The estate of the person in the hands of executors,

13-16  administrators or heirs, before distribution, is insufficient to pay all

13-17  the debts due from the deceased; or

13-18     (d) The estate and effects of an absconding, concealed or absent

13-19  person required to pay any amount by force of such a revenue act

13-20  are levied upon by process of law.

13-21     2.  This section does not give the county recorder a preference

13-22  over:

13-23     (a) Any recorded lien that attached before the date when the

13-24  amounts required to be paid became a lien; or

13-25     (b) Any costs of administration, funeral expenses, expenses of

13-26  personal illness, family allowances or debts preferred pursuant to

13-27  federal law or wages as provided in [NRS 150.220.] section 14 of

13-28  this act.

13-29     Sec. 28.  NRS 150.220 is hereby repealed.

 

13-30  TEXT OF REPEALED SECTION

 

13-31     150.220  Priority for payment.  The debts and charges of the

13-32   estate must be paid in the following order:

13-33     1.  Expenses of administration.

13-34     2.  Funeral expenses.

13-35     3.  The expenses of the last illness.

13-36     4.  Family allowance.

13-37     5.  Debts having preference by laws of the United States.

13-38     6.  Money owed to the Department of Human Resources as a

13-39   result of the payment of benefits for Medicaid.

14-1      7.  Wages to the extent of $600, of each employee of the

14-2  decedent, for work done or personal services rendered within 3

14-3   months before the death of the employer. If there is not sufficient

14-4   money with which to pay all such labor claims in full, the money

14-5   available must be distributed among the claimants in accordance

14-6   with the amounts of their respective claims.

14-7      8.  Judgments rendered against the decedent in his lifetime, and

14-8   mortgages in order of their date. The preference given to a

14-9   mortgage extends only to the proceeds of the property mortgaged.

14-10   If the proceeds of that property are insufficient to pay the mortgage,

14-11   the part remaining unsatisfied must be classed with other demands

14-12   against the estate.

14-13     9.  All other demands against the estate.

 

14-14  H