2005 Nevada Revised Statutes - Chapter 147 — Presentation and Payment of Claims

CHAPTER 147 - PRESENTATION AND PAYMENT OFCLAIMS

PRESENTATION

NRS 147.010 Noticeto creditors.

NRS 147.020 Death,resignation or removal of personal representative after expiration of time fornotice: No further notice necessary.

NRS 147.030 Filingof notice and affidavit of publication or certificate of mailing.

NRS 147.040 Claims:Limit on time for filing.

NRS 147.050 Claimsof personal representative.

NRS 147.060 Claimsof district judge.

NRS 147.070 Claimsfor $250 or more must be supported by affidavit; correction or amendment ofdefective claim or affidavit.

NRS 147.080 Claimsfounded on written instrument or secured by mortgage or lien.

NRS 147.090 Effectof statute of limitations.

NRS 147.100 Actionsand proceedings pending against decedent or property in estate of decedent.

NRS 147.110 Examinationof claims by personal representative: Allowance or rejection; effect of failureto act on claims; untimely claims.

NRS 147.120 Statusof approved claims.

NRS 147.130 Rejectionof claim; notice; time to file suit; procedure if claim of Department of Healthand Human Services rejected; service of summons; removal of personalrepresentative for default.

NRS 147.140 Vacancyin administration.

NRS 147.150 Claimsmust be filed and rejected; exception for mortgage.

NRS 147.160 Offerof partial allowance of claim.

NRS 147.170 Referenceof controversy.

NRS 147.180 Compromiseof claim or action against estate: Petition; notice of hearing; execution ofconveyances.

NRS 147.190 Reimbursementfor costs.

PAYMENT OF CLAIMS

NRS 147.195 Debtsand charges of estate: Priority of payment.

NRS 147.200 Statusof judgment against estate.

NRS 147.210 Executionof judgment entered against decedent before his death; execution levied uponproperty of decedent during his lifetime; conversion of lien of attachment.

NRS 147.220 Intereston claims.

NRS 147.230 Personalrepresentative not chargeable with debts of estate except under writtenagreement.

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PRESENTATION

NRS 147.010 Noticeto creditors. A personal representative shallpublish and mail notice to creditors in the manner provided in NRS 155.020.

[Part 119:107:1941; A 1951, 464] + [134:107:1941;1931 NCL 9882.134](NRS A 1975, 1773; 1987, 781; 1999, 2308)

NRS 147.020 Death,resignation or removal of personal representative after expiration of time fornotice: No further notice necessary. If apersonal representative dies, resigns or is removed after the expiration of thetime for the publication or mailing of notice to creditors, the successor neednot give any further notice to creditors.

[Part 119:107:1941; A 1951, 464](NRS A 1987, 782; 1999, 2308)

NRS 147.030 Filingof notice and affidavit of publication or certificate of mailing. After the notice to creditors has been mailed orpublished, a copy, with the affidavit of publication or, if notice is mailed,with a certificate of mailing, must be filed with the clerk.

[Part 119:107:1941; A 1951, 464](NRS A 1985, 244;1987, 782; 1999, 2308)

NRS 147.040 Claims:Limit on time for filing.

1. A personhaving a claim, due or to become due, against the decedent must file his claimwith the clerk within 90 days after the mailing for those required to bemailed, or 90 days after the first publication of the notice to creditorspursuant to NRS 155.020.

2. A creditorwho receives a notice to creditors by mail pursuant to subsection 5 of NRS 155.020 must file a claim with theclerk within 30 days after the mailing or 90 days after the first publicationof notice to creditors pursuant to NRS155.020, whichever is later.

3. If a claimis not filed with the clerk within the time allowed by subsection 1 or 2, theclaim is forever barred, but if it is made to appear, by the affidavit of theclaimant or by other proof to the satisfaction of the court, that the claimantdid not have notice as provided in NRS155.020 or actual notice of the administration of the estate, the claim maybe filed at any time before the filing of the final account.

4. The period of 90 days prescribed by this section isreduced to 60 days if summary administration is granted under chapter 145 of NRS.

[Part 120:107:1941; 1931 NCL 9882.120](NRS A 1975,1774; 1987, 782; 1999,2308)

NRS 147.050 Claimsof personal representative.

1. If apersonal representative is a creditor of the decedent, the claim must be filedwith the clerk, who must present it for allowance or rejection to the court.Its allowance by the court is sufficient evidence of its correctness, and itmust be paid as other claims in due course of administration.

2. If the court rejects the claim, action thereon maybe brought by the personal representative as claimant against the estate, andsummons must be served upon the court, which shall appoint an attorney, at theexpense of the estate, to defend the action. If the claimant fails to recover,he must pay all costs, including reasonable attorneys fees for the estate, tobe fixed by the court.

[Part 122:107:1941; 1931 NCL 9882.122](NRS A 1999, 2308)

NRS 147.060 Claimsof district judge.

1. If a judgeof the district court files or presents a claim against the estate of adecedent, the administration of which is pending before that judge, the judgemust designate, in writing, some other district judge who, upon presentation ofthe claim, is vested with power to approve or reject it.

2. In case of its rejection by the designated judge,the claimant has the same right to bring an action for its recovery as otherpersons whose claims are rejected.

[Part 122:107:1941; 1931 NCL 9882.122](NRS A 1999, 2309)

NRS 147.070 Claimsfor $250 or more must be supported by affidavit; correction or amendment ofdefective claim or affidavit.

1. A claim foran amount of $250 or more filed with the clerk must be supported by theaffidavit of the claimant that:

(a) The amountis justly due (or if the claim is not yet due, that the amount is a just demandand will be due on the ..... day of ........).

(b) No paymentshave been made thereon which are not credited.

(c) There areno offsets to the amount demanded to the knowledge of the claimant or otheraffiant.

2. Every claimfiled with the clerk must contain the mailing address of the claimant. Anywritten notice mailed by a personal representative to the claimant at theaddress furnished is proper notice.

3. When theaffidavit is made by any other person than the claimant, the reasons why it isnot made by the claimant must be set forth in the affidavit.

4. The oathmay be taken before any person authorized to administer oaths.

5. The amountof interest must be computed and included in the statement of the claim and therate of interest determined.

6. Except asotherwise provided in subsection 7, the court may, for good cause shown, allowa defective claim or affidavit to be corrected or amended on application madeat any time before the filing of the final account, but an amendment may not bemade to increase the amount of a claim after the time for filing a claim hasexpired.

7. The court shall allow the Department of Health andHuman Services to amend at any time before the filing of the final account aclaim for the payment of benefits for Medicaid that the Department identifiesafter the original claim has been filed.

[121:107:1941; 1931 NCL 9882.121](NRS A 1967, 361;1979, 454; 1985, 1214; 1999,879, 2309; 2003, 884)

NRS 147.080 Claimsfounded on written instrument or secured by mortgage or lien.

1. If a claimis founded upon a bond, bill, note or other instrument, the original instrumentneed not be filed, but a copy, with all endorsements, must be attached to thestatement of the claim and filed therewith.

2. If a claim is secured by a mortgage or lien, acertified copy of the mortgage or lien must be attached to the claim and filedwith the clerk.

[Part 123:107:1941; A 1953, 505](NRS A 1999, 2309)

NRS 147.090 Effectof statute of limitations. A claim which isbarred by the statute of limitations must not be allowed or approved by apersonal representative or by the court. No claim which has been timely filedis affected by the statute of limitations, pending the administration of theestate.

[125:107:1941; 1931 NCL 9882.125](NRS A 1997,1490; 1999, 2310)

NRS 147.100 Actionsand proceedings pending against decedent or property in estate of decedent.

1. Except as otherwise ordered by the court for goodcause shown, an action or proceeding pending against a decedent at the time ofhis death may not be continued against the decedents personal representativeunless:

(a) A claim isfirst filed as provided in this chapter;

(b) The claimis rejected in whole or in part; and

(c) Within 60days after notice of rejection is given, the claimant who is the plaintiffapplies to the court in which the action or proceeding is pending for an ordersubstituting the personal representative in the action or proceeding. Thisrequirement applies only if the notice of rejection contains a statement thatthe claimant has 60 days within which to apply for an order of substitution.

2. No recovery may be allowed in an action againstproperty in the estate of a decedent unless proof is made of compliance withthis section.

[129:107:1941; 1931 NCL 9882.129](NRS A 1999, 2310)

NRS 147.110 Examinationof claims by personal representative: Allowance or rejection; effect of failureto act on claims; untimely claims.

1. Within 15days after the time for filing claims has expired, as provided in this chapter,the personal representative shall examine all claims filed and shall eitherendorse on each claim an allowance or rejection, with the day and the yearthereof, or shall file a notice of allowance or rejection with the date and theyear thereof, and the notice of allowance or rejection must be attached to theclaim allowed or rejected and filed with the clerk.

2. If apersonal representative refuses or neglects to endorse on a claim an allowanceor rejection within 15 days, as specified in this section, or does not file anotice of allowance or rejection, the claim shall be deemed rejected, but thepersonal representative may, nevertheless, allow the claim at any time beforethe filing of the final account.

3. A personal representative need not allow or rejecta claim that was not timely filed unless the court otherwise orders.

[Part 123:107:1941; A 1953, 505](NRS A 1999, 879, 2310; 2001, 2347)

NRS 147.120 Statusof approved claims. All claims approved by thepersonal representative or the court must be ranked among the acknowledgeddebts of the estate, to be paid in due course of administration.

[Part 123:107:1941; A 1953, 505](NRS A 1999, 2311)

NRS 147.130 Rejectionof claim; notice; time to file suit; procedure if claim of Department of Healthand Human Services rejected; service of summons; removal of personalrepresentative for default.

1. If a claimis rejected by the personal representative or the court, in whole or in part,the claimant must be immediately notified by the personal representative, andthe claimant must bring suit in the proper court against the personalrepresentative within 60 days after the notice or file a timely petition forsummary determination pursuant to subsection 2, whether the claim is due ornot, or the claim is forever barred. A claimant must be informed of therejection of the claim by written notice forwarded to the claimants mailingaddress by registered or certified mail.

2. If a claimfiled by the Department of Health and Human Services is rejected by thepersonal representative, the Director of the Department may, within 20 daysafter receipt of the written notice of rejection, petition the court forsummary determination of the claim. A petition for summary determination mustbe filed with the clerk, who shall set the petition for hearing, and noticemust be given for the period and in the manner required by NRS 155.010. Allowance of the claim by thecourt is sufficient evidence of its correctness, and it must be paid as ifpreviously allowed by the personal representative.

3. In anyaction brought upon a claim rejected in whole or in part by the personalrepresentative, if he resides out of the State or has departed from the State,or cannot, after due diligence, be found within the State, or conceals himselfto avoid the service of summons, the summons, together with a copy of thecomplaint, must be mailed directly to the last address given by him, with acopy to the attorney for the estate, and proof of the mailing must be filedwith the clerk where the administration of the estate is pending. This serviceis the equivalent of personal service upon the personal representative, but hehas 30 days from the date of service within which to answer.

4. If the personal representative defaults after suchservice, the default is sufficient grounds for his removal as personalrepresentative by the court without notice. Upon petition and notice, in themanner provided for an application for letters of administration, anadministrator or an administrator with the will annexed must be appointed bythe court and, upon his qualification as such, letters of administration orletters of administration with the will annexed must be issued.

[124:107:1941; 1931 NCL 9882.124](NRS A 1969, 95;1971, 317; 1983, 263; 1985, 115; 1995, 2575; 1999, 2311; 2003, 884)

NRS 147.140 Vacancyin administration. The time during which thereis a vacancy in the administration must not be included in any limitationsprescribed in this chapter, except as otherwise provided in NRS 147.020.

[128:107:1941; 1931 NCL 9882.128](NRS A 1999, 2312)

NRS 147.150 Claimsmust be filed and rejected; exception for mortgage. Noholder of a claim against an estate may maintain an action thereon unless theclaim is first filed with the clerk and the claim is rejected in whole or inpart, except in the following case: An action may be brought by the holder of amortgage to enforce the mortgage against the property of the estate subjectthereto if all recourse against any other property of the estate is expresslywaived in the complaint.

[Part 120:107:1941; 1931 NCL 9882.120] + [Part126:107:1941; 1931 NCL 9882.126](NRS A 1999, 2312)

NRS 147.160 Offerof partial allowance of claim.

1. A personalrepresentative who, or a court which, acts upon a filed claim shall endorse onthe claim the amount offered to be allowed.

2. If the creditor refuses to accept the amountoffered to be allowed in satisfaction of the claim, the creditor shall recoverno costs in any action brought on the claim against the personal representativeunless he recovers a greater amount than that offered to be allowed.

[130:107:1941; 1931 NCL 9882.130](NRS A 1999, 2312)

NRS 147.170 Referenceof controversy.

1. If thepersonal representative doubts the correctness of any claim filed, the personalrepresentative may enter into an agreement in writing with the claimant torefer the matter in controversy to some disinterested person, as a master, tobe approved by the court, and the agreement and approval must be filed with theclerk. The court shall enter an order referring the matter in controversy tothe person so selected, or if the parties consent, the matter may be heard bythe court.

2. The mastermust hear and determine the matter and make a report to the court.

3. The sameproceedings must be had in all respects, and the master has the same powers, isentitled to the same compensation and is subject to the same control as inother cases of reference.

4. The court may remove the master, appoint another,set aside or confirm the report, and adjudge costs, as in actions againstpersonal representatives, and the judgment of the court thereon is as valid andeffectual, in all respects, as if the judgment had been entered in an actioncommenced by ordinary process.

[Part 126:107:1941; 1931 NCL 9882.126](NRS A 1999, 2312)

NRS 147.180 Compromiseof claim or action against estate: Petition; notice of hearing; execution ofconveyances.

1. After thetime for the presentation of claims has expired, the personal representative,with the approval of the court, may compromise any claim against the estate orany action brought against the personal representative as such by the transferof specific assets of the estate or otherwise.

2. To obtainsuch approval, the personal representative shall file a petition with the clerkshowing the advantage of the compromise.

3. The clerkshall set the petition for hearing, and the personal representative shall givenotice thereof for the period and in the manner required by NRS 155.010.

4. If, underthis section, the court authorizes the transfer of real property of the estate,conveyances must be executed by the personal representative in the same manneras provided in NRS 148.280, and have thesame force and effect as conveyances executed pursuant to that section.

5. A certified copy of the order authorizing thetransfer must be recorded in the office of the recorder of the county in whichthe real property, or any portion thereof, is located.

[127:107:1941; 1931 NCL 9882.127](NRS A 1999, 2313)

NRS 147.190 Reimbursementfor costs. If a judgment is recovered withcosts against a personal representative, the costs must be allowed to thepersonal representative from the accounts of the administration, unless itappears that the action or proceeding in which the costs were taxed wasprosecuted or resisted by the personal representative without cause.

[133:107:1941; 1931 NCL 9882.133](NRS A 1999, 2313)

PAYMENT OF CLAIMS

NRS 147.195 Debtsand charges of estate: Priority of payment. Thedebts 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 UnitedStates.

6. Money owed to the Department of Health and HumanServices as a result of the payment of benefits for Medicaid.

7. Wages to the extent of $600, of each employee ofthe decedent, for work done or personal services rendered within 3 monthsbefore the death of the employer. If there is not sufficient money with whichto pay all such labor claims in full, the money available must be distributedamong the claimants in accordance with the amounts of their respective claims.

8. Judgments rendered against the decedent in hislifetime, and mortgages in order of their date. The preference given to amortgage extends only to the proceeds of the property mortgaged. If theproceeds of that property are insufficient to pay the mortgage, the partremaining unsatisfied must be classed with other demands against the estate.

9. All other demands against the estate.

(Added to NRS by 2003, 2513)

NRS 147.200 Statusof judgment against estate.

1. The effectof a judgment rendered against a personal representative upon a claim for moneyagainst the estate of the decedent is only to establish the claim in the samemanner as if it had been allowed by the personal representative, and thejudgment must be that the personal representative pay, in due course ofadministration, the amount ascertained to be due.

2. A certifiedcopy of the judgment must be filed in the estate proceedings.

3. Noexecution may issue upon the judgment, nor does it create any lien upon theproperty of the estate, nor give the judgment creditor any priority of payment.

4. This section does not apply to a judgment offoreclosure of a mortgage.

[131:107:1941; 1931 NCL 9882.131](NRS A 1999, 2313)

NRS 147.210 Executionof judgment entered against decedent before his death; execution levied uponproperty of decedent during his lifetime; conversion of lien of attachment.

1. If a judgment has been entered against the decedentin the decedents lifetime, no execution may issue after death, but a certifiedcopy of the judgment must be attached to the statement of claim filed with theclerk and must be acted on as any other claim.

2. If an execution has been levied upon any propertyof the decedent in the decedents lifetime, the property may be sold for thesatisfaction of the judgment, and the officer making the sale shall account tothe personal representative for any surplus in his hands.

3. The lien of an attachment may be converted into thelien of a judgment on property in the estate subject to the lien of theattachment, with the same priority:

(a) If the judgment debtor dies after entry ofjudgment; or

(b) If judgment is entered after the death of thedefendant,

in theaction in which the property was attached.

[132:107:1941; 1931 NCL 9882.132](NRS A 1999, 2314)

NRS 147.220 Intereston claims. All claims paid bear interest fromdate of filing at a rate equal to the prime rate at the largest bank in Nevada,as ascertained by the Commissioner of Financial Institutions, on January 1 orJuly 1, as the case may be, immediately preceding the date of filing, plus 2percent, unless a different rate is applicable by contract or otherwise. Therate of interest must be adjusted accordingly on each January 1 and July 1thereafter until the amount of the claim is paid.

[Part 120:107:1941; 1931 NCL 9882.120](NRS A 1977,296; 1979, 830; 1981, 1859; 1987, 941; 1999, 2314)

NRS 147.230 Personalrepresentative not chargeable with debts of estate except under writtenagreement. No personal representative ischargeable upon any special promise to assume liability for damages or to paythe debts of the decedent from his own assets, unless the agreement for thatpurpose, or some memorandum or note thereof, is in writing and signed by thepersonal representative, or by some other person by him thereunto speciallyauthorized.

[202:107:1941; 1931 NCL 9882.202](NRS A 1999, 2314)