Senate Bill No. 207–Committee on Judiciary

 

February 25, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes concerning 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; 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. NRS 133.055 is hereby amended to read as follows:

1-2  133.055  A signature affixed to a self-proving affidavit or a

1-3  self-proving declaration that is attached to a will and executed at

1-4  the same time as the will is considered a signature affixed to the will

1-5  if necessary to prove the execution of the will.

1-6  Sec. 2.  Chapter 134 of NRS is hereby amended by adding

1-7  thereto a new section to read as follows:

1-8  If any person dies leaving several children, or leaving a child

1-9  and issue of one or more children, and any such surviving child

1-10  dies under age, without issue and not having been married, all the

1-11  estate that came to the deceased child by inheritance from the

1-12  deceased parent descends in equal shares to the other children of

1-13  the same parent, and to the issue of any other children of the same

1-14  parent who may have died, by right of representation.

 

 

2-1  Sec. 3.  NRS 134.030 is hereby amended to read as follows:

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

2-3  which is the separate property of the decedent and which is not

2-4  otherwise limited by contract, the estate descends and must be

2-5  distributed, subject to the payment of the debts of the decedent, in

2-6  the manner provided in NRS 134.040 to 134.120, inclusive[.] , and

2-7  section 2 of this act.

2-8  Sec. 4.  NRS 134.080 is hereby amended to read as follows:

2-9  134.080  [1.] At the death of a child who is under age, who is

2-10  without issue and who has not been married, all the other children of

2-11  the parent being also dead, if any of the other children left issue, the

2-12  estate that came to the child by inheritance from the parent descends

2-13  to all the issue of the other children of the same parent, and if all the

2-14  issue are in the same degree of kindred to the child, they are entitled

2-15  to share the estate equally; otherwise, they are entitled to take

2-16  according to the right of representation.

2-17      [2.  If any person dies leaving several children, or leaving a

2-18  child and issue of one or more children, and any such surviving

2-19  child dies under age, without issue and not having been married, all

2-20  the estate that came to the deceased child by inheritance from the

2-21  deceased parent descends in equal shares to the other children of the

2-22  same parent, and to the issue of any other children of the same

2-23  parent who may have died, by right of representation.]

2-24      Sec. 5.  NRS 136.170 is hereby amended to read as follows:

2-25      136.170  1.  If it appears to the court that a will cannot be

2-26  proven as otherwise provided by law because one or more or all the

2-27  subscribing witnesses to the will, at the time the will is offered for

2-28  probate, are dead or mentally or physically incapable of testifying or

2-29  otherwise unavailable, the court may admit the will to probate upon

2-30  the testimony in person, by deposition or by affidavit of at least two

2-31  credible disinterested [witnesses] persons that the signature to the

2-32  will is genuine, or upon other sufficient proof that the signature is

2-33  genuine.

2-34      2.  The provisions of subsection 1 do not preclude the court, in

2-35  its discretion, from requiring in addition, the testimony in person, by

2-36  deposition or by affidavit of any available subscribing witness, or

2-37  proof of such other pertinent facts and circumstances as the court

2-38  deems necessary to admit the will to probate.

2-39      Sec. 6.  NRS 138.020 is hereby amended to read as follows:

2-40      138.020  1.  No person is qualified to serve as an executor

2-41  who, at the time the will is probated:

2-42      (a) Is under the age of majority;

2-43      (b) Has been convicted of a felony;

3-1  (c) Upon proof, is adjudged by the court disqualified to execute

3-2  the duties of executor by reason of conflict of interest, drunkenness,

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

3-4  (d) Is a bank not authorized to do business in the State of

3-5  Nevada, unless it associates as coexecutor a bank authorized to do

3-6  business in this state. An out-of-state bank is qualified to appoint a

3-7  substitute executor, pursuant to NRS 138.045, without forming such

3-8  an association, but any natural person so appointed must be a

3-9  resident of this state.

3-10      2.  If a disqualified person is named as the sole executor in a

3-11  will, or if all persons so named are disqualified or renounce their

3-12  right to act, or fail to appear and qualify, letters of administration

3-13  with the will annexed must issue.

3-14      Sec. 7.  NRS 141.045 is hereby amended to read as follows:

3-15      141.045  Letters of special administration may be in

3-16  substantially the following form, after properly entitling the court:

 

3-17  In the Matter of the Estate of)

3-18                                  )   Case No.

3-19                                  )

3-20  deceased.                 )   Letters of Special Administration

3-21  ............................... )

 

3-22      On ……… (day) …… (month) ……. (year), the court entered an

3-23  order [admitting the decedent’s will to probate and] appointing

3-24        (name)       as special administrator of the decedent’s estate. The

3-25  order includes:

3-26      [ ] a directive for the establishment of a blocked account for

3-27  sums in excess of $……….;

3-28      [ ] a directive for the posting of a bond in the sum of $……….;

3-29  or

3-30      [ ] a directive for both the establishment of a blocked account

3-31  for sums in excess of $ ………. and the posting of a bond in the sum

3-32  of $……….....

3-33      The special administrator, after being duly qualified, may act and

3-34  has the authority and duties of special administrator.

3-35      In testimony of which, I have this date signed these letters and

3-36  affixed the seal of the court.

 

3-37                                               CLERK OF THE COURT

3-38                                               By ……………………….

3-39                                               Deputy Clerk        (date)

 

 

 

4-1  OATH

4-2  I, ………………………………………………………, whose

4-3  mailing address is …………………………………………….,

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

4-5  duties of special administrator, and that all matters stated in any

4-6  petition or paper filed with the court by me are true of my own

4-7  knowledge or, if any matters are stated on information and belief, I

4-8  believe them to be true.

4-9                                                                         ............................

4-10                                                   Special Administrator

 

4-11  SUBSCRIBED AND AFFIRMED before me this ….…. (day) of

4-12  ….…. (month) of ……… (year).

 

4-13                                       CLERK OF COURT

4-14                                       By .................................

4-15                                       Deputy Clerk

4-16                                       (or) ...............................

4-17                                       NOTARY PUBLIC

4-18                                       County of ……… State of

 

4-19      Sec. 8.  NRS 141.090 is hereby amended to read as follows:

4-20      141.090  If a court has reason to believe, from its own

4-21  knowledge or from credible information, that a personal

4-22  representative:

4-23      1.  Has wasted, converted to the personal representative’s own

4-24  use or mismanaged, or is about to waste or convert to the personal

4-25  representative’s own use, the property of the estate committed to the

4-26  personal representative’s charge;

4-27      2.  Has committed or is about to commit any wrong or fraud

4-28  upon the estate;

4-29      3.  Has become disqualified to act;

4-30      4.  Has wrongfully neglected the estate; [or]

4-31      5.  Has a conflict of interest with the estate; or

4-32      6.  Has unreasonably delayed the performance of necessary acts

4-33  in any particular as personal representative,

4-34  the court may, by an order entered upon the minutes, suspend the

4-35  powers of the personal representative until the matter can be

4-36  investigated, or take such other action as it deems appropriate under

4-37  the circumstances.

4-38      Sec. 9.  NRS 143.065 is hereby amended to read as follows:

4-39      143.065  A statute of limitations running on a cause of action

4-40  belonging to a decedent, that was not barred as of the date of death,

4-41  does not bar the cause of action sooner than [4 months] 1 year after

4-42  the death. A cause of action that, but for this section, would be

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

5-2  barred after [4 months] 1 year unless the running of the statute is

5-3  tolled under other law.

5-4  Sec. 10.  NRS 143.120 is hereby amended to read as follows:

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

5-6  to examination or to testify concerning the matter of the complaint,

5-7  the court may commit the person to the county jail, there to remain

5-8  confined until the person obeys the order of the court or is

5-9  discharged according to law.

5-10      2.  If, upon examination, it appears that the person has

5-11  concealed, converted, smuggled, conveyed away, or in any manner

5-12  disposed of any money, goods or chattels of the decedent, or that the

5-13  person has possession or control of any deeds, conveyances, bonds,

5-14  contracts or other writings which contain evidence of, or tend to

5-15  disclose the right, title, interest or claim of the decedent to any real

5-16  or personal property, claim or demand, or any last will of the

5-17  decedent, the court may enter an order requiring the person to

5-18  deliver any such property or effects to the personal representative at

5-19  such time as the court may fix. If the person fails to comply with the

5-20  order, the court may commit the person to the county jail until the

5-21  order is complied with or the person is discharged according to law.

5-22      3.  The order of the court for the delivery of the property is

5-23  prima facie evidence of the right of the personal representative to

5-24  the property in any action that may be brought for its recovery, and

5-25  any judgment recovered must be for [double the value of the

5-26  property, and damages in addition thereto equal to] treble damages

5-27  equal to three times the value of the property.

5-28      4.  In addition to the examination of the party, witnesses may be

5-29  produced and examined on either side.

5-30      Sec. 11.  NRS 145.060 is hereby amended to read as follows:

5-31      145.060  1.  A personal representative shall publish and mail

5-32  notice to creditors in the manner provided in NRS 155.020.

5-33      2.  Creditors of the estate must file their claims, due or to

5-34  become due, with the clerk, within 60 days after the mailing to the

5-35  creditors for those required to be mailed, or 60 days after the first

5-36  publication of the notice to creditors pursuant to NRS 155.020, and

5-37  within [10] 15 days thereafter the personal representative shall allow

5-38  or reject the claims filed.

5-39      3.  Any claim which is not filed within the 60 days is barred

5-40  forever, except that if it is made to appear, by the affidavit of the

5-41  claimant or by other proof to the satisfaction of the court, that the

5-42  claimant did not have notice as provided in NRS 155.020, the claim

5-43  may be filed at any time before the filing of the final account.

5-44      4.  Every claim which is filed as provided in this section and

5-45  allowed by the personal representative, must then, and not until

6-1  then, be ranked as an acknowledged debt of the estate and be paid in

6-2  the course of administration, except that payment of small debts in

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

6-4  5.  If a claim filed by the Welfare Division of the Department of

6-5  Human Resources is rejected by the personal representative, the

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

6-7  written notice of rejection, petition the court for summary

6-8  determination of the claim. A petition for summary determination

6-9  must be filed with the clerk, who shall set the petition for hearing,

6-10  and the petitioner shall give notice for the period and in the manner

6-11  required by NRS 155.010. Allowance of the claim by the court is

6-12  sufficient evidence of its correctness, and it must be paid as if

6-13  previously allowed by the personal representative.

6-14      Sec. 12.  NRS 146.070 is hereby amended to read as follows:

6-15      146.070  1.  If a person dies leaving an estate the gross value

6-16  of which, after deducting any encumbrances, does not exceed

6-17  [$50,000,] $75,000, and there is a surviving spouse or minor child

6-18  or minor children of the decedent, the estate must not be

6-19  administered upon, but the whole estate, after directing such

6-20  payments as may be deemed just, must be, by an order for that

6-21  purpose, assigned and set apart for the support of the surviving

6-22  spouse or minor child or minor children, or for the support of the

6-23  minor child or minor children, if there is no surviving spouse. Even

6-24  if there is a surviving spouse, the court may, after directing such

6-25  payments, set aside the whole of the estate to the minor child or

6-26  minor children, if it is in their best interests.

6-27      2.  If there is no surviving spouse or minor child of the decedent

6-28  and the gross value of a decedent’s estate, after deducting any

6-29  encumbrances, does not exceed [$50,000,] $75,000, upon good

6-30  cause shown, the court shall order that the estate not be administered

6-31  upon, but the whole estate be assigned and set apart in the following

6-32  order:

6-33      (a) To the payment of funeral expenses, expenses of last illness,

6-34  money owed to the Department of Human Resources as a result of

6-35  payment of benefits for Medicaid and creditors, if there are any; and

6-36      (b) Any balance remaining to the claimant or claimants entitled

6-37  thereto pursuant to a valid will of the decedent, and if there is no

6-38  valid will, pursuant to intestate succession.

6-39      3.  Proceedings taken under this section, whether or not the

6-40  decedent left a valid will, must not begin until at least 30 days after

6-41  the death of the decedent and must be originated by a petition

6-42  containing:

6-43      (a) A specific description of all the decedent’s property.

6-44      (b) A list of all the liens and mortgages of record at the date of

6-45  the decedent’s death.

7-1  (c) An estimate of the value of the property.

7-2  (d) A statement of the debts of the decedent so far as known to

7-3  the petitioner.

7-4  (e) The names and residences of the heirs and devisees of the

7-5  decedent and the age of any who is a minor and the relationship of

7-6  the heirs and devisees to the decedent, so far as known to the

7-7  petitioner.

7-8  4.  The clerk shall set the petition for hearing and the petitioner

7-9  shall give notice of the petition and hearing in the manner provided

7-10  in NRS 155.010 to the decedent’s heirs and devisees and to the State

7-11  Welfare Administrator. If a complete copy of the petition is not

7-12  enclosed with the notice, the notice must include a statement setting

7-13  forth to whom the estate is being set aside.

7-14      5.  No court or clerk’s fees may be charged for the filing of any

7-15  petition in, or order of court thereon, or for any certified copy of the

7-16  petition or order in an estate not exceeding $2,500 in value.

7-17      6.  If the court finds that the gross value of the estate, less

7-18  encumbrances, does not exceed the sum of [$50,000,] $75,000, the

7-19  court may direct that the estate be distributed to the father or mother

7-20  of a minor heir or devisee, with or without the filing of any bond, or

7-21  to a custodian under chapter 167 of NRS, or may require that a

7-22  general guardian be appointed and that the estate be distributed to

7-23  the guardian, with or without bond, as in the discretion of the court

7-24  is deemed to be in the best interests of the minor. The court may

7-25  direct the manner in which the money may be used for the benefit of

7-26  the minor.

7-27      Sec. 13.  Chapter 147 of NRS is hereby amended by adding

7-28  thereto a new section to read as follows:

7-29      The debts and charges of the estate must be paid in the

7-30  following order:

7-31      1.  Expenses of administration.

7-32      2.  Funeral expenses.

7-33      3.  The expenses of the last illness.

7-34      4.  Family allowance.

7-35      5.  Debts having preference by laws of the United States.

7-36      6.  Money owed to the Department of Human Resources as a

7-37  result of the payment of benefits for Medicaid.

7-38      7.  Wages to the extent of $600, of each employee of the

7-39  decedent, for work done or personal services rendered within 3

7-40  months before the death of the employer. If there is not sufficient

7-41  money with which to pay all such labor claims in full, the money

7-42  available must be distributed among the claimants in accordance

7-43  with the amounts of their respective claims.

7-44      8.  Judgments rendered against the decedent in his lifetime,

7-45  and mortgages in order of their date. The preference given to a

8-1  mortgage extends only to the proceeds of the property mortgaged.

8-2  If the proceeds of that property are insufficient to pay the

8-3  mortgage, the part remaining unsatisfied must be classed with

8-4  other demands against the estate.

8-5  9.  All other demands against the estate.

8-6  Sec. 14.  Chapter 148 of NRS is hereby amended by adding

8-7  thereto the provisions set forth as sections 15 and 16 of this act.

8-8  Sec. 15.  1.  The personal representative may enter into a

8-9  written contract with any bona fide agent, broker, or multiple

8-10  group of agents or brokers to secure a purchaser for any personal

8-11  property of the estate, and by that contract, the personal

8-12  representative may grant an exclusive right to sell and shall

8-13  provide for the payment to the agent, broker, or multiple group of

8-14  agents or brokers, out of the proceeds of a sale to any purchaser

8-15  secured pursuant to the contract, of a commission, the amount of

8-16  which must be fixed and allowed by the court upon confirmation

8-17  of the sale. If the sale is confirmed to the purchaser, the contract

8-18  is binding and valid as against the estate for the amount so

8-19  allowed by the court.

8-20      2.  By the execution of any such contract, no personal liability

8-21  is incurred by the personal representative, and no liability of any

8-22  kind is incurred by the estate unless a sale is made and confirmed

8-23  by the court.

8-24      3.  The commission must not exceed 10 percent of the

8-25  proceeds from the sale of any personal property pursuant to this

8-26  section.

8-27      Sec. 16.  1.  Except as otherwise provided in subsection 2, no

8-28  sale of personal property at private sale may be confirmed by the

8-29  court unless the court is satisfied that the sum offered represents

8-30  the fair market value of the property sold, nor unless the personal

8-31  property has been appraised within 1 year before the time of sale.

8-32  If it has not been appraised, a new appraisement must be had, as

8-33  in the case of an original appraisement of personal property. This

8-34  may be done at any time before the sale or confirmation thereof.

8-35      2.  If the personal representative is the sole devisee or heir of

8-36  the estate, or if all devisees or heirs consent in writing to sale

8-37  without an appraisal, the requirement of an appraisal may be

8-38  dispensed with.

8-39      Sec. 17.  NRS 148.190 is hereby amended to read as follows:

8-40      148.190  1.  Except as otherwise provided in subsection 3 and

8-41  NRS 148.080, 148.170 and 148.180 and in summary administration

8-42  under chapter 145 of NRS, a personal representative may sell

8-43  personal property of the estate only after notice is published in a

8-44  newspaper published in the county where the proceedings are

8-45  pending, if there is such a newspaper, and if not, then in one having

9-1  general circulation in the county, for 2 weeks, consisting of three

9-2  publications 1 week apart, before the day of the sale or, in the case

9-3  of a private sale, before the day on or after which the sale is to be

9-4  made. For good cause shown, the court may decrease the number of

9-5  publications to one and shorten the time for publication to a period

9-6  not less than 8 days. The notice shall include a brief description of

9-7  the property to be sold, a place where bids or offers will be received,

9-8  and a day on or after which the sale will be made.

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

9-10  other public place, at the residence of the decedent or at a place

9-11  designated by the personal representative, but no sale may be made

9-12  of any personal property which is not available for inspection at the

9-13  time of sale, unless the court otherwise orders.

9-14      3.  If the personal representative is the sole devisee or heir of

9-15  the estate, or if all devisees or heirs of the estate consent in

9-16  writing, the court may waive the requirement of publication.

9-17      Sec. 18.  NRS 150.010 is hereby amended to read as follows:

9-18      150.010  The personal representative must be allowed all

9-19  necessary expenses in the administration and settlement of the

9-20  estate, and fees for services as provided by law, but if the decedent

9-21  by will makes some other provision for the compensation of the

9-22  personal representative, this shall be deemed a full compensation for

9-23  those services, unless within 60 days after his appointment the

9-24  personal representative files a renunciation, in writing, of all claim

9-25  for the compensation provided by the will.

9-26      Sec. 19.  Chapter 151 of NRS is hereby amended by adding

9-27  thereto the provisions set forth as sections 20 and 21 of this act.

9-28      Sec. 20.  No gift or grant by the decedent shall be deemed to

9-29  have been made as satisfaction of a testamentary gift unless:

9-30      1.  So expressed in the instrument providing for the gift or

9-31  grant;

9-32      2.  Charged in a writing by the decedent as partial or complete

9-33  satisfaction of a testamentary gift; or

9-34      3.  Acknowledged in writing by the donee to be such.

9-35      Sec. 21.  If the value of the gift is expressed in the instrument

9-36  providing for the gift or grant, or in a writing of the decedent, or

9-37  in an acknowledgment of the donee, that value must be used in the

9-38  distribution and division of the estate. Otherwise, the gift or grant

9-39  must be valued as of the time the donee came into possession or

9-40  enjoyment of the property or as of the time of death of the

9-41  decedent, whichever occurs first.

9-42      Sec. 22.  NRS 159.197 is hereby amended to read as follows:

9-43      159.197  1.  After the winding up of the affairs of the

9-44  guardianship, the guardian shall deliver physical possession of all of

9-45  the ward’s property to the ward, his executor or administrator or the

10-1  successor guardian, as the case may be, and obtain a receipt

10-2  therefor.

10-3      2.  If the guardianship has terminated by reason of the death of

10-4  the ward, the court, by order, may authorize the guardian to

10-5  distribute the deceased ward’s property in the same manner as

10-6  authorized by NRS 146.070, if the gross value of the property, less

10-7  encumbrances, remaining in the hands of the guardian does not

10-8  exceed [$50,000,] $75,000, or as authorized by NRS 146.080, if the

10-9  gross value of the property remaining in the hands of the guardian

10-10  does not exceed $20,000.

10-11     Sec. 23.  NRS 253.0403 is hereby amended to read as follows:

10-12     253.0403  1.  When the gross value of a decedent’s property

10-13  situated in this state does not exceed $5,000, a public administrator

10-14  may, without procuring letters of administration, administer the

10-15  estate of that person upon filing with the court an affidavit of his

10-16  right to do so.

10-17     2.  The affidavit must provide:

10-18     (a) The public administrator’s name and address, and his

10-19  attestation that he is entitled by law to administer the estate;

10-20     (b) The decedent’s place of residence at the time of his death;

10-21     (c) That the gross value of the decedent’s property in this state

10-22  does not exceed $5,000;

10-23     (d) That at least 40 days have elapsed since the death of the

10-24  decedent;

10-25     (e) That no application or petition for the appointment of a

10-26  personal representative is pending or has been granted in this state;

10-27     (f) A description of the personal property of the decedent;

10-28     (g) Whether there are any heirs or next of kin known to the

10-29  affiant, and if known, the name and address of each such person;

10-30     (h) If heirs or next of kin are known to the affiant, a description

10-31  of the method of service he used to provide to each of them notice

10-32  of the affidavit and that at least 10 days have elapsed since the

10-33  notice was provided;

10-34     (i) That all debts of the decedent, including funeral and burial

10-35  expenses, have been paid or provided for; and

10-36     (j) The name of each person to whom the affiant intends to

10-37  distribute the decedent’s property.

10-38     3.  Before filing the affidavit with the court, the public

10-39  administrator shall take reasonable steps to ascertain whether any of

10-40  the decedent’s heirs or next of kin exist. If the administrator

10-41  determines that heirs or next of kin exist, he shall serve each of them

10-42  with a copy of the affidavit. Service must be made personally or by

10-43  certified mail.

10-44     4.  If the affiant:

11-1      (a) Submits an affidavit which does not meet the requirements

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

11-3  true, any money or property he receives or distributes is subject to

11-4  all debts of the decedent, based on the priority for payment of debts

11-5  and charges specified in [NRS 150.220.] section 13 of this act.

11-6      (b) Fails to give notice to heirs or next of kin as required by

11-7  subsection 3, any money or property he holds or distributes to others

11-8  shall be deemed to be held in trust for those heirs and next of kin

11-9  who did not receive notice and have an interest in the property.

11-10     5.  A person who receives an affidavit containing the

11-11  information required by subsection 2 is entitled to rely upon such

11-12  information, and if he relies in good faith, he is immune from civil

11-13  liability for actions based on that reliance.

11-14     6.  Upon receiving proof of the death of the decedent, an

11-15  affidavit containing the information required by this section and the

11-16  written approval of the public administrator to do so:

11-17     (a) A transfer agent of any security shall change the registered

11-18  ownership of the security claimed from the decedent to the person

11-19  claiming to succeed to ownership of that security.

11-20     (b) A governmental agency required to issue certificates of

11-21  ownership or registration to personal property shall issue a new

11-22  certificate of ownership or registration to the person claiming to

11-23  succeed to ownership of the property.

11-24     Sec. 24.  NRS 360.480 is hereby amended to read as follows:

11-25     360.480  1.  The amounts, including interest and penalties,

11-26  required to be paid by any person under this title shall be satisfied

11-27  first in any of the following cases:

11-28     (a) Whenever the person is insolvent.

11-29     (b) Whenever the person makes a voluntary assignment of his

11-30  assets.

11-31     (c) Whenever the estate of the person in the hands of executors,

11-32  administrators or heirs, prior to distribution, is insufficient to pay all

11-33  the debts due from the deceased.

11-34     (d) Whenever the estate and effects of an absconding, concealed

11-35  or absent person required to pay any amount by force of such a

11-36  revenue act are levied upon by process of law.

11-37     2.  This section does not give the State a preference over:

11-38     (a) Any recorded lien which attached prior to the date when the

11-39  amounts required to be paid became a lien; or

11-40     (b) Any costs of administration, funeral expenses, expenses of

11-41  personal illness, family allowances or debts preferred under federal

11-42  law or wages as provided in [NRS 150.220.] section 13 of this act.

 

 

 

12-1      Sec. 25.  NRS 360A.090 is hereby amended to read as follows:

12-2      360A.090  1.  The amounts, including interest and penalties,

12-3  required to be paid by a person pursuant to chapter 365, 366 or 373

12-4  of NRS or NRS 590.120 or 590.840 must be satisfied first if:

12-5      (a) The person is insolvent;

12-6      (b) The person makes a voluntary assignment of his assets;

12-7      (c) The estate of the person in the hands of executors,

12-8  administrators or heirs, before distribution, is insufficient to pay all

12-9  the debts due from the deceased; or

12-10     (d) The estate and effects of an absconding, concealed or absent

12-11  person required to pay any amount by force of such a revenue act

12-12  are levied upon by process of law.

12-13     2.  This section does not give the State of Nevada a preference

12-14  over:

12-15     (a) Any recorded lien that attached before the date when the

12-16  amounts required to be paid became a lien; or

12-17     (b) Any costs of administration, funeral expenses, expenses of

12-18  personal illness, family allowances or debts preferred pursuant to

12-19  federal law or wages as provided in [NRS 150.220.] section 13 of

12-20  this act.

12-21     Sec. 26.  NRS 375.220 is hereby amended to read as follows:

12-22     375.220  1.  The amounts, including interest and penalties,

12-23  required to be paid by any person pursuant to this chapter must be

12-24  satisfied first if:

12-25     (a) The person is insolvent;

12-26     (b) The person makes a voluntary assignment of his assets;

12-27     (c) The estate of the person in the hands of executors,

12-28  administrators or heirs, before distribution, is insufficient to pay all

12-29  the debts due from the deceased; or

12-30     (d) The estate and effects of an absconding, concealed or absent

12-31  person required to pay any amount by force of such a revenue act

12-32  are levied upon by process of law.

12-33     2.  This section does not give the county recorder a preference

12-34  over:

12-35     (a) Any recorded lien that attached before the date when the

12-36  amounts required to be paid became a lien; or

12-37     (b) Any costs of administration, funeral expenses, expenses of

12-38  personal illness, family allowances or debts preferred pursuant to

12-39  federal law or wages as provided in [NRS 150.220.] section 13 of

12-40  this act.

12-41     Sec. 27.  NRS 150.220 is hereby repealed.

 

13-1  TEXT OF REPEALED SECTION

 

13-2      150.220  Priority for payment.  The debts and charges of the

13-3   estate must be paid in the following order:

13-4      1.  Expenses of administration.

13-5      2.  Funeral expenses.

13-6      3.  The expenses of the last illness.

13-7      4.  Family allowance.

13-8      5.  Debts having preference by laws of the United States.

13-9      6.  Money owed to the Department of Human Resources as a

13-10   result of the payment of benefits for Medicaid.

13-11     7.  Wages to the extent of $600, of each employee of the

13-12   decedent, for work done or personal services rendered within 3

13-13   months before the death of the employer. If there is not sufficient

13-14   money with which to pay all such labor claims in full, the money

13-15   available must be distributed among the claimants in accordance

13-16   with the amounts of their respective claims.

13-17     8.  Judgments rendered against the decedent in his lifetime, and

13-18   mortgages in order of their date. The preference given to a

13-19   mortgage extends only to the proceeds of the property mortgaged.

13-20   If the proceeds of that property are insufficient to pay the mortgage,

13-21   the part remaining unsatisfied must be classed with other demands

13-22   against the estate.

13-23     9.  All other demands against the estate.

 

13-24  H