2005 Nevada Revised Statutes - Chapter 150 — Compensation and Accounting

CHAPTER 150 - COMPENSATION AND ACCOUNTING

COMMISSIONS

NRS 150.010 Expensesand compensation of personal representative.

NRS 150.020 Generalcompensation.

NRS 150.030 Compensationfor extraordinary services.

NRS 150.040 Contractsfor higher compensation void.

NRS 150.050 Allowanceon compensation.

ATTORNEYS FEES

NRS 150.060 Attorneysfor personal representatives and minor, absent, unborn, incapacitated ornonresident heirs.

RENDERING OF EXHIBITS AND ACCOUNTS

NRS 150.070 Liabilityof personal representative; accounting required for property sold over inventoriedvalue.

NRS 150.075 Waiverof accounting.

NRS 150.080 Firstaccount: Filing and contents.

NRS 150.100 Penaltiesfor failure to file first account.

NRS 150.105 Annualaccount: Contents.

NRS 150.110 Finalaccount: Filing; penalties for failure to file.

NRS 150.115 Supplementaryaccount to final account.

NRS 150.120 Accountingwhen authority of personal representative ceases.

NRS 150.130 Accountsof deceased or incapacitated personal representative: Accounting by personalrepresentative, guardian or attorney.

NRS 150.140 Revocationof letters when personal representative absconds and fails to account.

NRS 150.150 Vouchersfor payments: Filing not required; examination and audit; lost or unavailable.

NRS 150.160 Accountand petition for settlement: Hearing and notice.

NRS 150.170 Contestof account: Rights of interested person; hearing.

NRS 150.180 Appointmentof attorney to represent minor, unborn, incapacitated or absent heirs anddevisees; fees.

NRS 150.190 Proofof notice necessary before allowance of account.

NRS 150.200 Allowanceand confirmation of account.

NRS 150.210 Effectof order settling account.

PAYMENT OF DEBTS, EXPENSES AND CHARGES

NRS 150.225 Paymentsto be made according to will; sources of payment if provision or property ofwill insufficient.

NRS 150.230 Dutyto pay certain expenses, allowances, debts and claims upon receipt of sufficientmoney; discretion to pay certain smaller debts; funeral expenses and expensesof last illness not charged to community share of surviving spouse.

NRS 150.240 Orderof court for payment of debts; treatment of classes of creditors; discharge ofpersonal representative upon compliance with order if property of estateexhausted.

NRS 150.250 Claimsnot yet due and contingent or disputed claim.

NRS 150.260 Liabilityof personal representative.

NRS 150.270 Claimnot included in order of payment.

NRS 150.280 Closingadministration.

APPORTIONMENT OF FEDERAL ESTATE TAX

NRS 150.290 Shorttitle.

NRS 150.300 Definitions.

NRS 150.310 Prorationof tax among persons interested in estate; exceptions.

NRS 150.320 Directionfor apportionment of estate tax: Precedence; limitation.

NRS 150.330 Jurisdictionof court; methods of proration.

NRS 150.340 Presentand future estates: Charge of tax against corpus without apportionment.

NRS 150.350 Propertynot possessed by personal representative: Recovery from person in possession orinterested in estate; court may direct payment; expenses.

NRS 150.360 Courtorder directing amounts of tax to be charged against or paid by takers ofestate.

NRS 150.370 Retentionof jurisdiction by court.

NRS 150.380 Apportionmentof tax and expenses imposed and incurred on property located or administered inthis State in estate of nonresident.

_________

COMMISSIONS

NRS 150.010 Expensesand compensation of personal representative. Thepersonal representative must be allowed all necessary expenses in the administrationand settlement of the estate, and fees for services as provided by law, but ifthe decedent by will makes some other provision for the compensation of the personalrepresentative, this shall be deemed a full compensation for those services,unless within 60 days after his appointment the personal representative files arenunciation, in writing, of all claim for the compensation provided by thewill.

[206:107:1941; 1931 NCL 9882.206](NRS A 1999, 2329; 2003, 2514)

NRS 150.020 Generalcompensation.

1. If no compensation is provided by the will, or thepersonal representative renounces all claims thereto, fees must be allowed uponthe whole amount of the estate which has been accounted for, less liens andencumbrances, as follows:

(a) For the first $15,000, at the rate of 4 percent.

(b) For the next $85,000, at the rate of 3 percent.

(c) For all above $100,000, at the rate of 2 percent.

2. The same fees must be allowed to the personal representativeif there is no will.

3. If there are two or more personal representatives,the compensation must be apportioned among them by the court according to theservices actually rendered by each.

[207:107:1941; 1931 NCL 9882.207](NRS A 1987, 511;1999, 2330)

NRS 150.030 Compensationfor extraordinary services. Such further allowancesmay be made as the court deems just and reasonable for any extraordinaryservices, such as:

1. Management, sales or mortgages of real or personalproperty.

2. Contested or litigated claims against the estate.

3. The adjustment and payments of extensive orcomplicated estate taxes.

4. Litigation in regard to the property of the estate.

5. The carrying on of the decedents business pursuantto an order of the court.

6. Such other litigation or special services as may benecessary for the personal representative to prosecute, defend or perform.

[208:107:1941; 1931 NCL 9882.208](NRS A 1975,1776; 1999, 2330)

NRS 150.040 Contractsfor higher compensation void. A contract betweena personal representative and an heir or devisee for a higher compensation thanthat allowed by NRS 150.020 and 150.030 is void.

[209:107:1941; 1931 NCL 9882.209](NRS A 1999, 2330)

NRS 150.050 Allowanceon compensation.

1. A personal representative, at any time after theissuance of letters and upon such notice to the interested persons as the courtrequires, may apply to the court for an allowance upon his fees.

2. On the hearing, the court shall enter an orderallowing him such portion of the fees, for services rendered up to that time,as the court deems proper, and the portion so allowed may be charged againstthe estate.

[210:107:1941; 1931 NCL 9882.210](NRS A 1977,1017; 1999, 2330)

ATTORNEYS FEES

NRS 150.060 Attorneysfor personal representatives and minor, absent, unborn, incapacitated ornonresident heirs.

1. Attorneys for personal representatives are entitledto reasonable compensation for their services, to be paid out of the decedentsestate. The amount must be fixed by agreement between the personalrepresentative and the attorney, subject to approval by the court, afterpetition, notice and hearing as provided in subsection 2. If the personalrepresentative and the attorney fail to reach agreement, or if the attorney isalso the personal representative, the amount must be determined and allowed bythe court. The petition must contain specific and detailed informationsupporting the entitlement to compensation, including:

(a) Reference to time and hours;

(b) The nature and extent of services rendered;

(c) Claimed ordinary and extraordinary services;

(d) The complexity of the work required; and

(e) Other information considered to be relevant to adetermination of entitlement.

2. The clerk shall set the petition for hearing, andthe petitioner shall give notice of the petition to the personal representativeif he is not the petitioner and to all known heirs in an intestacy proceedingand devisees in a will proceeding. The notice must be given for the period andin the manner provided in NRS 155.010.If a complete copy of the petition is not attached to the notice, the noticemust include a statement of the amount of the fee which the court will berequested to approve or allow.

3. On similar petition, notice and hearing, the courtmay make an allowance to an attorney for services rendered up to a certain timeduring the proceedings.

4. An heir or devisee may file objections to apetition filed pursuant to this section, and the objections must be consideredat the hearing.

5. Except as otherwise provided in this subsection, anattorney for minor, absent, unborn, incapacitated or nonresident heirs isentitled to compensation primarily out of the estate of the distributee sorepresented by him in those cases and to such extent as may be determined bythe court. If the court finds that all or any part of the services performed bythe attorney for the minor, absent, unborn, incapacitated or nonresident heirswas of value to the decedents entire estate as such and not of value only tothose heirs, the court shall order that all or part of the attorneys fee bepaid to the attorney out of the money of the decedents entire estate as ageneral administrative expense of the estate. The amount of these fees must bedetermined in the same manner as the other attorneys fees provided for in thissection.

[211:107:1941; 1931 NCL 9882.211] + [Part291:107:1941; 1931 NCL 9882.291] + [Part 307:107:1941; 1931 NCL 9882.307](NRS A 1971, 564; 1975, 1776; 1977, 1018; 1979, 1097; 1995, 20; 1999, 2330)

RENDERING OF EXHIBITS AND ACCOUNTS

NRS 150.070 Liabilityof personal representative; accounting required for property sold overinventoried value.

1. A personal representative is accountable for thewhole estate that comes into the possession of the personal representative atthe value of the appraisement contained in the inventory, except as otherwiseprovided in this title, and for all the interest, profit and income of theestate.

2. A personal representative is not accountable forany debts due the decedent that remain uncollected without his fault.

3. A personal representative shall not make profit bythe increase nor suffer loss by the decrease or destruction of any part of theestate without his fault. The personal representative shall account for theexcess when any part of the estate is sold for more than the inventoried valueand, if any assets are sold for less than that value, the personalrepresentative is not responsible for the loss if the sale has been madeaccording to law.

[203:107:1941; 1931 NCL 9882.203] + [204:107:1941;1931 NCL 9882.204] + [205:107:1941; 1931 NCL 9882.205](NRS A 1999, 2331)

NRS 150.075 Waiverof accounting. Notwithstanding any otherprovision of this chapter, the court may waive the requirement of anyaccounting if all interested persons agree in writing to the waiver.

(Added to NRS by 2001, 2348)

NRS 150.080 Firstaccount: Filing and contents. Within 6 monthsafter the appointment of a personal representative, or sooner if required bythe court, upon its own motion or upon the petition of an interested person, apersonal representative shall file with the clerk the first, verified account,showing:

1. The amount of money received and expended by him.

2. The claims filed or presented against the estate,giving the name of each claimant, the nature of his claim, when it became dueor will become due, whether it was allowed or rejected by him, or not yet actedupon.

3. All other matters necessary to show the conditionof the estate.

[213:107:1941; 1931 NCL 9882.213](NRS A 1999, 2332; 2001, 164)

NRS 150.100 Penaltiesfor failure to file first account.

1. If the personal representative fails to file thefirst account within the time specified in NRS150.080, the court shall order a citation to issue requiring the personalrepresentative to file the account by a time to be stated in the citation, asfixed by the court, or appear and show cause why the personal representativeshould not be compelled to file the account.

2. If the personal representative fails to file theaccount by the time stated, or show cause why not, the court, by attachment orother proper process, may compel the personal representative to file such anaccount or may revoke the letters, or both, and like action may be taken inreference to any subsequent account the personal representative may be requiredto file.

[214:107:1941; 1931 NCL 9882.214](NRS A 1999, 2332)

NRS 150.105 Annualaccount: Contents. Until all remainingproperty is delivered pursuant to an order of final distribution, a personalrepresentative shall file with the court, annually, an account showing theincome he has received, what expenditures he has made, what property has beendisbursed, or sold and at what price, and the nature and value of the propertyremaining on hand.

(Added to NRS by 1999, 2329)

NRS 150.110 Finalaccount: Filing; penalties for failure to file.

1. If all the property of an estate has been sold orthere is money available for the payment of all debts due by the estate, andthe estate is in a proper condition to be closed, the personal representativeshall file a final account and request a settlement of his administration.

2. If the personal representative neglects to file afinal account, the same proceedings may be had as prescribed in this chapter inregard to the first account to be filed by the personal representative, and allthe provisions relative to the first account, and the notice and settlementthereof, apply to the account for final settlement.

[Part 231:107:1941; A 1953, 179] + [232:107:1941;1931 NCL 9882.232](NRS A 1999, 2332)

NRS 150.115 Supplementaryaccount to final account. A supplementaryaccount of any receipts and disbursements by the personal representative sincethe filing of his final account must be filed before or at the time of making afinal distribution, unless the distribution is only of real property. Asettlement of the supplementary account, together with an estimate of theexpense of closing the estate, must be entered by the court and included in theorder. The court may order notice of the settlement of the supplementaryaccount.

(Added to NRS by 1999, 2329)

NRS 150.120 Accountingwhen authority of personal representative ceases. Ifthe authority of a personal representative ceases or is revoked for any reason,the personal representative may be cited by the court to account, at the instanceof the person succeeding to the administration of the same estate, in like manneras the personal representative might have been by any interested person duringthe term of the appointment.

[221:107:1941; 1931 NCL 9882.221](NRS A 1999, 2333)

NRS 150.130 Accountsof deceased or incapacitated personal representative: Accounting by personalrepresentative, guardian or attorney.

1. If a personal representative dies or becomesincapacitated, the accounts may be presented to the court by the personalrepresentative or guardian of the former personal representative. Upon petitionof a successor to the deceased or incapacitated personal representative, thecourt shall compel the personal representative or guardian to file an accountof the administration. The court shall settle such an account as in othercases.

2. In the absence of a personal representative orguardian of the deceased or incapacitated personal representative, the courtmay compel an attorney to file an account of the administration to the extentthat the attorney has information or records available for that purpose. Theaccount of the attorney need not be verified. A fee must be allowed theattorney by the court for this extraordinary service.

[Part 231:107:1941; A 1953, 179](NRS A 1999, 2333)

NRS 150.140 Revocationof letters when personal representative absconds and fails to account. If the personal representative absconds, or if, afterreasonable diligence, he cannot be found, so that a citation cannot bepersonally served, and the personal representative neglects to file an accountwithin 20 days after the time fixed for that purpose, the letters must berevoked.

[222:107:1941; 1931 NCL 9882.222](NRS A 1999, 2333)

NRS 150.150 Vouchersfor payments: Filing not required; examination and audit; lost or unavailable.

1. A personal representative need not file voucherswith the court to substantiate payments made in the administration of theestate, but shall retain possession of the vouchers and permit theirexamination by the court or an interested person.

2. The court, on its own motion or on application exparte for good cause by an interested person, may order production forexamination and audit the vouchers that support an account specified in theorder.

3. If any vouchers are lost, or for other good reasoncannot be produced on settlement of an account, the payment may be proved bythe oath of one competent witness. If it is proven that vouchers for anydisbursements have been lost or destroyed, that it is impossible to obtainduplicates, and that the expenses were paid in good faith and were legalcharges against the estate, the personal representative must be allowed thoseexpenses.

[217:107:1941; A 1953, 505](NRS A 1967, 870; 1999, 2333)

NRS 150.160 Accountand petition for settlement: Hearing and notice.

1. If an account and a petition for settlement thereofis filed, the clerk shall set the petition for hearing and the petitioner shallgive notice for the period and in the manner required by NRS 155.010.

2. If the account is for a final settlement and apetition for the final distribution of the estate is filed with the account,the notice of settlement must so state, and on the settlement of the account,distribution of the estate to those entitled thereto may be made as soon aspossible.

[215:107:1941; 1931 NCL 9882.215](NRS A 1975,1777; 1987, 782; 1999,2334)

NRS 150.170 Contestof account: Rights of interested person; hearing.

1. An interested person may appear and file writtenobjections to the account and contest it.

2. Upon the hearing, the personal representative maybe examined under oath concerning the account and the property and effects ofthe decedent and the disposition thereof.

3. All matters, including allowed claims not addressedin the settlement of any former account and not reduced to judgment, may becontested for cause shown.

[216:107:1941; 1931 NCL 9882.216](NRS A 1999, 2334)

NRS 150.180 Appointmentof attorney to represent minor, unborn, incapacitated or absent heirs anddevisees; fees.

1. If a minor is interested in the estate who has nolegally appointed guardian, the court may appoint a disinterested attorney torepresent him who may contest the account as any other interested person mightcontest it.

2. The court may also appoint an attorney to representunborn, incapacitated or absent heirs and devisees.

3. An attorney so appointed must be paid as providedin NRS 150.060.

[218:107:1941; 1931 NCL 9882.218](NRS A 1971, 504;1999, 2335; 2001, 2348)

NRS 150.190 Proofof notice necessary before allowance of account. Noaccount may be allowed by the court until it is first proved that the noticerequired by this chapter has been given, and the order must show that suchproof was made to the satisfaction of the court. The order is conclusiveevidence of the fact.

[220:107:1941; 1931 NCL 9882.220](NRS A 1999, 2335)

NRS 150.200 Allowanceand confirmation of account. If an accountcomes before the court for allowance and there are no objections filed by anyinterested person, and the account is made to appear to the court to be correctand according to law, the court shall allow and confirm the account.

[234:107:1941; 1931 NCL 9882.234](NRS A 1999, 2335)

NRS 150.210 Effectof order settling account. An order settlingand allowing an account, when it becomes final, is conclusive against allinterested persons, but a person under legal disability has the right to movefor cause to reopen and examine the account, or to proceed by action againstthe personal representative or his sureties at any time before finaldistribution, and in any such action, the order is prima facie evidence of thecorrectness of the account.

[219:107:1941; 1931 NCL 9882.219](NRS A 1999, 2335)

PAYMENT OF DEBTS, EXPENSES AND CHARGES

NRS 150.225 Paymentsto be made according to will; sources of payment if provision or property ofwill insufficient.

1. If a testator makes provision by will, ordesignates property to be appropriated, for the payment of debts, the expensesof administration or family allowances, they must be paid according to thatprovision or out of the property thus appropriated, to the extent that theprovision or property is sufficient.

2. To the extent the provision or property isinsufficient, any portion of the estate not disposed of by the will must beappropriated for that purpose. To the extent that is not sufficient, theproperty given to residuary devisees, and thereafter all other propertydevised, is liable for those obligations in proportion to the value or amountof the respective devises, but specific devises are exempt from that liabilityif exemption appears to the court necessary to carry out the intent of thetestator and there is other sufficient property.

(Added to NRS by 1999, 2329)

NRS 150.230 Dutyto pay certain expenses, allowances, debts and claims upon receipt ofsufficient money; discretion to pay certain smaller debts; funeral expenses andexpenses of last illness not charged to community share of surviving spouse.

1. The personal representative shall, as soon assufficient money is available, upon receipt of a sworn statement of the amountdue and without any formal action upon creditors claims, pay the funeralexpenses, the expenses of the last illness, the allowance made to the family ofthe decedents, money owed to the Department of Health and Human Services as aresult of payment of benefits for Medicaid and wage claims to the extent of$600 of each employee of the decedent for work done or personal servicesrendered within 3 months before the death of the employer, but may retain thenecessary expenses of administration.

2. The personal representative is not obliged to payany other debt or any devise until the payment is ordered by the court.

3. The personal representative may, before courtapproval or order, pay any of the decedents debts amounting to $500 or lessif:

(a) Claims for payment thereof have been properly filedin the proceedings;

(b) The debts are legally due; and

(c) The estate is solvent.

In settlingthe account of the estate, the court shall allow any such payment if theconditions of paragraphs (a), (b) and (c) have been met. Otherwise, thepersonal representative is personally liable to any person sustaining loss ordamage as a result of the payment.

4. Funeral expenses and expenses of a last illness aredebts payable out of the estate of the decedent and must not be charged to thecommunity share of a surviving spouse, whether or not the surviving spouse isfinancially able to pay those expenses and whether or not the surviving spouseor any other person is also liable therefor.

[226:107:1941; 1931 NCL 9882.226](NRS A 1973, 404;1975, 1777; 1995, 2576; 1997, 1253, 1490; 1999, 2336)

NRS 150.240 Orderof court for payment of debts; treatment of classes of creditors; discharge ofpersonal representative upon compliance with order if property of estateexhausted.

1. Upon the settlement of any account of the personalrepresentative after the time to file claims has expired, the court shall orderthe payment of the debts as the circumstances of the estate permit. If there isnot sufficient money to pay all of the debts, the order must specify the sum tobe paid to each creditor.

2. No creditor of any one class may receive anypayment until all those of a preferred class are fully paid, and if the estateis insufficient to pay all debts of any one class, each creditor of that classmust be paid a dividend in proportion to that creditors claim.

3. If the property of the estate is exhausted by thepayment ordered, the account constitutes a final account, and the personalrepresentative is entitled to his discharge upon filing the necessary proofshowing that he has complied with the order.

[225:107:1941; 1931 NCL 9882.225](NRS A 1999, 2337)

NRS 150.250 Claimsnot yet due and contingent or disputed claim.

1. If there is a claim not due, or any contingent ordisputed claims against the estate, the amount thereof, or such part of theamount as the holder would be entitled to if the claim were due, established orabsolute, must be paid to the clerk and there remain, to be paid over to theholder when the holder becomes entitled thereto or, if the holder fails toestablish a claim, to be paid over or distributed as the circumstances of theestate require.

2. If a creditor whose claim has been allowed but isnot yet due appears and assents to a deduction therefrom of the legal interestfor the time the claim has yet to run, he is entitled to be paid accordingly.

3. The payments provided for in this section are notto be made if the estate is insolvent unless a pro rata distribution isordered.

[227:107:1941; 1931 NCL 9882.227](NRS A 1999, 2337)

NRS 150.260 Liabilityof personal representative.

1. If an order is entered by the court for the paymentof creditors, the personal representative is personally liable to each creditorfor the amount of his claim, or the dividends thereon, and execution may beissued upon the order as upon a judgment in any other action, in favor of eachcreditor, and the same proceedings may be had under the execution as if it hadbeen issued upon a judgment.

2. The personal representative is also liable on hisbond to each creditor.

[228:107:1941; 1931 NCL 9882.228](NRS A 1999, 2337)

NRS 150.270 Claimnot included in order of payment. After theaccounts of the personal representative have been settled and an order enteredfor the payment of debts and distribution of the estate, no creditor whoseclaim was not included in the order for payment has any right to call upon thecreditors who have been paid, nor upon the heirs or devisees to contribute tothe payment of the claim, but if the personal representative has failed to givethe notice to creditors, as prescribed by law, that creditor may recover on thebond of the personal representative the amount for which the claim wouldproperly have been allowed.

[229:107:1941; 1931 NCL 9882.229](NRS A 1999, 2337)

NRS 150.280 Closingadministration.

1. If all the debts and liabilities of an estate havebeen paid, and the estate is in a condition to be closed, the court shalldirect the payment of devises and the distribution of the estate among thoseentitled as provided in chapter 151 of NRS.

2. If the estate is not in a condition to be closed,the court shall direct the payment of devises and the distribution of theestate among those entitled at such time as it thereafter may be in a conditionto be closed.

[230:107:1941; 1931 NCL 9882.230](NRS A 1999, 2338)

APPORTIONMENT OF FEDERAL ESTATE TAX

NRS 150.290 Shorttitle. NRS150.290 to 150.380, inclusive, maybe cited as the Federal Estate Tax Apportionment Law.

(Added to NRS by 1957, 228; A 1999, 2338)

NRS 150.300 Definitions. As used in NRS 150.290to 150.380, inclusive, unless thecontext otherwise requires:

1. Gross estate or estate means all propertyincluded for federal estate tax purposes in determining the federal estate taxpursuant to the federal estate tax law.

2. Person interested in the estate means any personwho receives or is the beneficiary of any property transferred pursuant to atransfer which is subject to a tax imposed by any federal estate tax law, nowexisting or hereafter enacted.

(Added to NRS by 1957, 228; A 1999, 2338)

NRS 150.310 Prorationof tax among persons interested in estate; exceptions.

1. If it appears upon any accounting, or in anyappropriate action or proceeding, that a personal representative, trustee orother fiduciary has paid or may be required to pay an estate tax to the FederalGovernment under the provisions of any federal estate tax law, now existing orhereafter enacted, upon or with respect to any property required to be includedin the gross estate of a decedent under the provisions of any such law, theamount of the tax must be equitably prorated among the persons interested inthe estate, whether residents or nonresidents of this State, to whom theproperty was, is or may be transferred or to whom any benefit accrues, except:

(a) Where a testator otherwise directs in his will.

(b) Where by written instrument, including, withoutlimitation, an electronic trust, executed inter vivos direction is given forapportionment among the beneficiaries of taxes assessed upon the specific funddealt with in the instrument.

2. As used in this section, electronic trust has themeaning ascribed to it in NRS 163.0015.

(Added to NRS by 1957, 228; A 1999, 2338; 2001, 2348)

NRS 150.320 Directionfor apportionment of estate tax: Precedence; limitation.

1. A testator, settlor, or possessor of anyappropriate power of appointment may direct how the estate tax shall beapportioned or allocated or grant a discretionary power to another so todirect. Any such direction shall take precedence insofar as the directionprovides for the payment of the estate tax or any part thereof from propertythe disposition of which can be controlled by the instrument containing thedirection or delegating the power to another.

2. Any direction as to apportionment ornonapportionment of the tax, whether contained in a will or in anontestamentary instrument, shall be limited in its operation to the propertypassing thereunder unless such will or instrument otherwise directs.

(Added to NRS by 1957, 228)

NRS 150.330 Jurisdictionof court; methods of proration.

1. The proration must be made by the court havingjurisdiction of any property in the estate in the proportion that the value ofthe property, interest or benefit of each such person bears to the total valueof the property, interest and benefits received by all such persons interestedin the estate.

2. In making a proration, allowances must be made forany exemptions granted by the act imposing the tax and for any deductions allowedby that act for the purpose of arriving at the value of the net estate.

3. Any exemption or deduction allowed by reason of therelationship of any person to the decedent or by reason of the charitablepurposes of the gift inures to the benefit of the person bearing therelationship or receiving the charitable gift, except that, if an interest issubject to a prior present interest which is not allowable as a deduction, theestate tax apportionable against the present interest must be paid from principal.

4. A deduction for property previously taxed and acredit for gift taxes or taxes of a foreign country paid by the decedent or hisestate inures to the proportionate benefit of all persons liable toapportionment.

5. A credit for inheritance, succession or estatetaxes or taxes in the nature thereof in respect to property or interestsincludable in the gross estate inures to the benefit of the persons orinterests chargeable with the payment of the taxes to the extent or inproportion that the tax paid or payable reduces the estate tax.

6. To the extent that property passing to or in trustfor a surviving spouse does not constitute an allowable deduction solely byreason of an inheritance tax or other death tax imposed upon and deductiblefrom such property, it must not be included in the computation provided for insubsection 1, and to that extent, no apportionment may be made against thatproperty.

7. The values used for federal estate tax purposes arethe values used as the basis for apportionment.

8. If the court finds that it is inequitable toapportion interest and penalties in the same manner as the principal of theestate tax by reason of special circumstances, it may direct apportionment ofinterest and penalties in a manner different from principal.

(Added to NRS by 1957, 228; A 1999, 2338)

NRS 150.340 Presentand future estates: Charge of tax against corpus without apportionment.

1. In cases where a trust is created, or otherprovision made whereby any person is given any interest in income, or an estatefor years, or for life, or other temporary interest in any property or fund,the tax on both such temporary interest and on the remainder thereafter shallbe charged against and paid out of the corpus of such property or fund withoutapportionment between remainders and temporary estates.

2. The provisions of subsection 1 shall applynotwithstanding that the holder of a temporary interest is given rights to thecorpus, but shall not apply to a common-law annuity.

(Added to NRS by 1957, 229)

NRS 150.350 Propertynot possessed by personal representative: Recovery from person in possession orinterested in estate; court may direct payment; expenses.

1. If any property required to be included in thegross estate does not come into the possession of the personal representative,he shall recover from whoever is in possession, or from the persons interestedin the estate, the proportionate amount of the tax payable by the personsinterested in the estate with which the persons interested in the estate arechargeable. The court may direct the payment of that amount by those persons tothe personal representative.

2. The provisions of subsection 1 also apply topersons in possession of or interested in real or personal property located inor subject to administration in another state and required to be included inthe gross estate of a resident of this State, unless the other state refuses toenforce the apportionment, in which case apportionment may be made inaccordance with the law which would be applied by the other state.

3. A person interested in the estate from whomapportionment is required under subsections 1 and 2 must also be charged withthe amount of reasonable expenses, including the personal representatives andattorneys fees, in connection with the determination of the tax and theapportionment thereof. Those expenses must be determined and collected in likemanner as the tax.

(Added to NRS by 1957, 229; A 1999, 2339)

NRS 150.360 Courtorder directing amounts of tax to be charged against or paid by takers ofestate.

1. The court, upon making a determination as providedin NRS 150.290 to 150.380, inclusive, shall enter an orderdirecting the personal representative or other fiduciary to charge thedetermined amounts against the persons against whom the tax has been proratedinsofar as the personal representative or other fiduciary is in possession ofproperty or interests of those persons against whom the charge may be made, andsummarily directing all other persons against whom the tax has been prorated orwho are in possession of property or interests of those persons to make paymentof the determined amounts to the personal representative or other fiduciary.

2. The orders may be preliminary, intermediate orfinal.

3. If the personal representative or other fiduciaryholds property of a person liable to apportionment which is insufficient tosatisfy the determined amount, the court may direct that the balance be paid bythe person liable.

4. If it appears that the personal representative orother fiduciary cannot recover the amount apportioned against any person, theamount not recovered must be charged in such manner as the court may determine.

5. If an overpayment is made the court may directappropriate reimbursement.

(Added to NRS by 1957, 230; A 1999, 2340)

NRS 150.370 Retentionof jurisdiction by court. The court shallretain jurisdiction until the purposes of NRS150.290 to 150.380, inclusive, havebeen accomplished.

(Added to NRS by 1957, 230; A 1999, 2340)

NRS 150.380 Apportionmentof tax and expenses imposed and incurred on property located or administered inthis State in estate of nonresident. Taximposed and expenses incurred by reason of inclusion for tax purposes ofproperty located or administered in this State, in the estate of a nonresidentof this State, shall be apportioned in accordance with the law of thedecedents domicile, applicable to property located therein.

(Added to NRS by 1957, 230)

 

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