Nrs: Chapter 150 - Compensation And Accounting

Link to law: https://www.leg.state.nv.us/NRS/NRS-150.html
Published: 2015

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[Rev. 11/21/2013 9:49:07

AM--2013]



CHAPTER 150 - COMPENSATION AND ACCOUNTING

COMMISSIONS

NRS 150.010           Expenses

and compensation of personal representative.

NRS 150.020           General

compensation.

NRS 150.025           Compensation

of personal representative who is an attorney.

NRS 150.030           Compensation

for extraordinary services.

NRS 150.040           Contracts

for higher compensation void.

NRS 150.050           Allowance

on compensation.

ATTORNEY’S FEES

NRS 150.060           Attorneys

for personal representatives and minor, absent, unborn, incapacitated or

nonresident heirs: General compensation.

NRS 150.0605         Attorneys

for petitioners generally: Compensation when estate’s value does not exceed $100,000.

NRS 150.061           Attorneys

for personal representatives: Compensation for extraordinary services.

NRS 150.063           Attorneys

for personal representatives: Apportionment of compensation for two or more

attorneys.

NRS 150.065           Attorneys

for personal representatives: Allowance of compensation after period for

creditors to file claims against estate.

NRS 150.067           Attorneys

for personal representatives: Final compensation; petition; notice; hearing and

order.

RENDERING OF EXHIBITS AND ACCOUNTS

NRS 150.070           Liability

of personal representative; accounting required for property sold over

inventoried value.

NRS 150.075           Waiver

of accounting.

NRS 150.080           First

account: Filing and contents.

NRS 150.100           Penalties

for failure to file first account.

NRS 150.105           Annual

account: Contents.

NRS 150.110           Final

account: Filing; penalties for failure to file.

NRS 150.115           Supplementary

account to final account.

NRS 150.120           Accounting

when authority of personal representative ceases.

NRS 150.130           Accounts

of deceased or incapacitated personal representative: Accounting by personal

representative, guardian or attorney.

NRS 150.140           Revocation

of letters when personal representative absconds and fails to account.

NRS 150.150           Vouchers

for payments: Filing not required; examination and audit; lost or unavailable.

NRS 150.160           Account

and petition for settlement: Hearing and notice.

NRS 150.170           Contest

of account: Rights of interested person; hearing.

NRS 150.180           Appointment

of attorney to represent minor, unborn, incapacitated or absent heirs and

devisees; fees.

NRS 150.190           Proof

of notice necessary before allowance of account.

NRS 150.200           Allowance

and confirmation of account.

NRS 150.210           Effect

of order settling account.

PAYMENT OF DEBTS, EXPENSES AND CHARGES

NRS 150.225           Payments

to be made according to will; sources of payment if provision or property of

will insufficient.

NRS 150.230           Duty

to pay certain expenses, allowances, debts and claims upon receipt of

sufficient money; discretion to pay certain smaller debts; funeral expenses and

expenses of last illness not charged to community share of surviving spouse.

NRS 150.240           Order

of court for payment of debts; treatment of classes of creditors; discharge of

personal representative upon compliance with order if property of estate

exhausted.

NRS 150.250           Claims

not yet due and contingent or disputed claim.

NRS 150.260           Liability

of personal representative.

NRS 150.270           Claim

not included in order of payment.

NRS 150.280           Closing

administration.

APPORTIONMENT OF FEDERAL ESTATE TAX

NRS 150.290           Short

title.

NRS 150.300           Definitions.

NRS 150.310           Proration

of tax among persons interested in estate; exceptions.

NRS 150.320           Direction

for apportionment of estate tax: Precedence; limitation.

NRS 150.330           Jurisdiction

of court; methods of proration.

NRS 150.340           Present

and future estates: Charge of tax against corpus without apportionment.

NRS 150.350           Property

not possessed by personal representative: Recovery from person in possession or

interested in estate; court may direct payment; expenses.

NRS 150.360           Court

order directing amounts of tax to be charged against or paid by takers of

estate.

NRS 150.370           Retention

of jurisdiction by court.

NRS 150.380           Apportionment

of tax and expenses imposed and incurred on property located or administered in

this State in estate of nonresident.

OTHER FEDERAL TAXES

NRS 150.400           Apportionment;

limitations.

_________

COMMISSIONS

      NRS 150.010  Expenses and compensation of personal representative.  A personal representative must be allowed all

necessary expenses in the administration and settlement of the estate, and fees

for services as provided by law, but if the decedent by will makes some other

provision for the compensation of the personal representative, this shall be

deemed a full compensation for those services, unless within 60 days after his

or her appointment the personal representative files a renunciation, in

writing, of all claim for the compensation provided by the will.

      [206:107:1941; 1931 NCL § 9882.206]—(NRS A 1999, 2329; 2003, 2514; 2011, 1455)

      NRS 150.020  General compensation.

      1.  If no compensation is provided by the

will, or the personal representative renounces all claims thereto, fees must be

allowed upon the whole amount of the estate which has been accounted for, less

liens and encumbrances, 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 representative if 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 the services actually rendered by each.

      4.  In addition to the fees described in

subsection 1, the court may allow such fees as it deems just and reasonable if

the fees authorized pursuant to subsection 1 are not sufficient to reasonably

compensate the personal representative.

      [207:107:1941; 1931 NCL § 9882.207]—(NRS A 1987, 511; 1999, 2330; 2009, 1632)

      NRS 150.025  Compensation of personal representative who is an attorney.

      1.  Notwithstanding any provision to the

contrary in the will, a personal representative who is an attorney retained to

perform services for the personal representative may receive compensation for

services as a personal representative or for services as an attorney for the

personal representative, but not both, unless the court:

      (a) Approves a different method of compensation

in advance; and

      (b) Finds that method of compensation to be for

the advantage, benefit and best interests of the decedent’s estate.

      2.  The provisions of this section shall

not be construed to disallow compensation for services rendered by an attorney

as a personal representative if:

      (a) Such services are included as part of the

legal services of the attorney in a manner consistent with NRS 150.060; and

      (b) The attorney does not receive compensation

pursuant to subsection 1 of NRS 150.020.

      3.  The services which are rendered by a

personal representative who is an attorney and for which compensation is

requested pursuant to this section include services rendered by an employee,

associate or partner in the same firm of such an attorney and services rendered

by an affiliate of such an attorney.

      4.  As used in this section, “affiliate”

has the meaning ascribed to it in NRS

163.020.

      (Added to NRS by 2011, 1455)

      NRS 150.030  Compensation for extraordinary services.  Such further allowances may be made as the

court deems just and reasonable for any extraordinary services, such as:

      1.  Management, sales or mortgages of real

or personal property.

      2.  Contested or litigated claims against

the estate.

      3.  The adjustment and payments of

extensive or complicated estate taxes.

      4.  Litigation in regard to the property of

the estate.

      5.  The carrying on of the decedent’s

business pursuant to an order of the court.

      6.  Such other litigation or special

services as may be necessary 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  Contracts for higher compensation void.  A

contract between a personal representative and an heir or devisee for a higher

compensation than that allowed by NRS 150.020 and 150.030 is void.

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

      NRS 150.050  Allowance on compensation.

      1.  A personal representative, at any time

after the issuance of letters and upon such notice to the interested persons as

the court requires, may apply to the court for an allowance upon his or her

fees.

      2.  On the hearing, the court shall enter

an order allowing a personal representative who applied to the court pursuant

to subsection 1 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

against the estate.

      [210:107:1941; 1931 NCL § 9882.210]—(NRS A 1977,

1017; 1999,

2330; 2011,

1455)

ATTORNEY’S FEES

      NRS 150.060  Attorneys for personal representatives and minor, absent,

unborn, incapacitated or nonresident heirs: General compensation.

      1.  An attorney for a personal

representative is entitled to reasonable compensation for the attorney’s

services, to be paid out of the decedent’s estate.

      2.  An attorney for a personal

representative may be compensated based on:

      (a) The applicable hourly rate of the attorney;

      (b) The value of the estate accounted for by the

personal representative;

      (c) An agreement as set forth in subsection 4 of NRS 150.061; or

      (d) Any other method preapproved by the court

pursuant to a request in the initial petition for the appointment of the

personal representative.

      3.  If the attorney is requesting

compensation based on the hourly rate of the attorney, he or she may include,

as part of that compensation for ordinary services, a charge for legal services

or paralegal services performed by a person under the direction and supervision

of the attorney.

      4.  If the attorney is requesting

compensation based on the value of the estate accounted for by the personal

representative, the allowable compensation of the attorney for ordinary

services must be determined as follows:

      (a) For the first $100,000, at the rate of 4

percent;

      (b) For the next $100,000, at the rate of 3

percent;

      (c) For the next $800,000, at the rate of 2

percent;

      (d) For the next $9,000,000, at the rate of 1

percent;

      (e) For the next $15,000,000, at the rate of 0.5

percent; and

      (f) For all amounts above $25,000,000, a

reasonable amount to be determined by the court.

      5.  Before an attorney may receive

compensation based on the value of the estate accounted for by the personal

representative, the personal representative must sign a written agreement as

required by subsection 8. The agreement must be prepared by the attorney and

must include detailed information, concerning, without limitation:

      (a) The schedule of fees to be charged by the

attorney;

      (b) The manner in which compensation for

extraordinary services may be charged by the attorney; and

      (c) The fact that the court is required to

approve the compensation of the attorney pursuant to subsection 8 before the

personal representative pays any such compensation to the attorney.

      6.  For the purposes of determining the

compensation of an attorney pursuant to subsection 4, the value of the estate

accounted for by the personal representative:

      (a) Is the total amount of the appraisal of

property in the inventory, plus:

             (1) The gains over the appraisal value on

sales; and

             (2) The receipts, less losses from the

appraisal value on sales; and

      (b) Does not include encumbrances or other

obligations on the property of the estate.

      7.  In addition to the compensation for

ordinary services of an attorney set forth in this section, an attorney may

also be entitled to receive compensation for extraordinary services as set

forth in NRS 150.061.

      8.  The compensation of the attorney must

be fixed by written agreement between the personal representative and the attorney,

and is subject to approval by the court, after petition, notice and hearing as

provided in this section. If the personal representative and the attorney fail

to reach agreement, or if the attorney is also the personal representative, the

amount must be determined and allowed by the court. The petition requesting

approval of the compensation of the attorney must contain specific and detailed

information supporting the entitlement to compensation, including:

      (a) If the attorney is requesting compensation

based upon the value of the estate accounted for by the personal

representative, the attorney must provide the manner of calculating the

compensation in the petition; and

      (b) If the attorney is requesting compensation

based on an hourly basis, or is requesting compensation for extraordinary

services, the attorney must provide the following information to the court:

             (1) Reference to time and hours;

             (2) The nature and extent of services

rendered;

             (3) Claimed ordinary and extraordinary

services;

             (4) The complexity of the work required;

and

             (5) Other information considered to be

relevant to a determination of entitlement.

      9.  The clerk shall set the petition for

hearing, and the petitioner shall give notice of the petition to the personal

representative if he or she is not the petitioner and to all known heirs in an

intestacy proceeding and devisees in a will proceeding. The notice must be

given for the period and in the manner provided in NRS 155.010. If a complete copy of the

petition is not attached to the notice, the notice must include a statement of

the amount of the fee which the court will be requested to approve or allow.

      10.  On similar petition, notice and

hearing, the court may make an allowance to an attorney for services rendered

up to a certain time during the proceedings. If the attorney is requesting

compensation based upon the value of the estate as accounted for by the

personal representative, the court may apportion the compensation as it deems

appropriate given the amount of work remaining to close the estate.

      11.  An heir or devisee may file objections

to a petition filed pursuant to this section, and the objections must be

considered at the hearing.

      12.  Except as otherwise provided in this

subsection, an attorney for minor, absent, unborn, incapacitated or nonresident

heirs is entitled to compensation primarily out of the estate of the

distributee so represented by the attorney in those cases and to such extent as

may be determined by the court. If the court finds that all or any part of the

services performed by the attorney for the minor, absent, unborn, incapacitated

or nonresident heirs was of value to the decedent’s entire estate as such and

not of value only to those heirs, the court shall order that all or part of the

attorney’s fee be paid to the attorney out of the money of the decedent’s

entire estate as a general administrative expense of the estate. The amount of

these fees must be determined in the same manner as the other attorney’s fees

provided for in this section.

      [211:107:1941; 1931 NCL § 9882.211] + [Part

291:107:1941; 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; 2009, 1632,

2524; 2011, 1455)

      NRS 150.0605  Attorneys for petitioners generally: Compensation when estate’s

value does not exceed $100,000.  If

the estate is set aside pursuant to NRS

146.070, the court may order reasonable attorney’s fees and costs to be

paid from the assets being set aside directly to the attorney for the

petitioner.

      (Added to NRS by 2011, 1455)

      NRS 150.061  Attorneys for personal representatives: Compensation for

extraordinary services.

      1.  If an attorney for a personal

representative receives compensation pursuant to NRS

150.060 based on the value of the estate accounted for by the personal

representative, the court may allow additional compensation for extraordinary

services by the attorney for the personal representative in an amount the court

determines is just and reasonable after petition, notice and hearing in the

manner provided in NRS 150.060.

      2.  Extraordinary services by the attorney

for a personal representative for which the court may allow compensation

include extraordinary services performed by a paralegal under the direction and

supervision of the attorney.

      3.  The petition requesting approval for

compensation for extraordinary services must include the following information:

      (a) Reference to time and hours;

      (b) The nature and extent of services rendered;

      (c) The complexity of the work required;

      (d) The hours spent and services performed by a

paralegal if the compensation includes extraordinary services performed by a

paralegal as described in subsection 2; and

      (e) Other information considered to be relevant

to a determination of entitlement.

      4.  An attorney for a personal representative

may agree to perform extraordinary services on a contingency fee basis if:

      (a) There is a written agreement between the

personal representative and the attorney that sets forth the manner in which

the compensation is to be calculated and that is approved by the court after a

hearing; and

      (b) The court determines that the compensation

provided in the agreement is just and reasonable and that the agreement will be

to the advantage of the estate and is in the best interests of the persons

interested in the estate.

      5.  Notice of a hearing required by

subsection 4 must be given for the period and in the manner provided in NRS 155.010.

      6.  As used in this section, “extraordinary

services” include, without limitation:

      (a) Sales or mortgages of real or personal

property;

      (b) Operating a decedent’s business;

      (c) Participating in litigation relating to the

estate;

      (d) Securing a loan to pay debts relating to the

estate; and

      (e) Preparing and filing income tax returns for

the estate.

      (Added to NRS by 2009, 1629)

      NRS 150.063  Attorneys for personal representatives: Apportionment of

compensation for two or more attorneys.

      1.  If there are two or more attorneys for

a personal representative, the compensation must be apportioned among the

attorneys by the court according to the services actually rendered by each attorney

unless otherwise provided in an agreement by the attorneys.

      2.  If there are two or more personal

representatives and the personal representatives have separate legal

representation, each attorney for each personal representative is entitled to

have the compensation for attorneys apportioned among the attorneys by the

court according to the services actually rendered by each attorney unless

otherwise provided in an agreement by the attorneys.

      (Added to NRS by 2009, 1630;

A 2011,

1457)

      NRS 150.065  Attorneys for personal representatives: Allowance of

compensation after period for creditors to file claims against estate.

      1.  At any time after the expiration of the

period for creditors of the estate to file their claims in a summary or full

administration pursuant to NRS 145.060

or 147.040, as applicable, a personal

representative or an attorney for a personal representative may file a petition

with the court for an allowance upon the compensation of the attorney for the

personal representative.

      2.  The clerk shall set the petition for

hearing and the petitioner shall give notice of the petition to the personal

representative if he or she is not the petitioner and to all known heirs in an

intestacy proceeding and devisees in a will proceeding. The notice must be

given for the period and in the manner provided in NRS 155.010. If a complete copy of the

petition is not attached to the notice, the notice must include a statement of

the amount of the compensation which the court will be requested to approve or

allow and the manner in which the compensation was determined.

      3.  On the hearing, the court may enter an

order allowing the portion of the compensation of the attorney for the personal

representative for such services rendered up to that time as the court deems

proper. The order must authorize the personal representative to charge against

the estate the amount of compensation allowed by the court pursuant to this

subsection.

      (Added to NRS by 2009, 1630;

A 2011,

1458)

      NRS 150.067  Attorneys for personal representatives: Final compensation;

petition; notice; hearing and order.

      1.  At the time of the filing of the final

account and of a petition for an order for final distribution of the estate,

the personal representative or the attorney for the personal representative may

file a petition with the court for an order fixing and allowing the

compensation of the attorney for the personal representative for all services

rendered in the estate proceeding.

      2.  The request for compensation described

in subsection 1 may be included in the final account or in the petition for an

order for final distribution of the estate or may be made in a separate

petition.

      3.  The clerk shall set the petition for

hearing and the petitioner shall give notice of the petition to the personal

representative if he or she is not the petitioner and to all known heirs in an

intestacy proceeding and devisees in a will proceeding. The notice must be

given for the period and in the manner provided in NRS 155.010. If a complete copy of the

petition is not attached to the notice, the notice must include a statement of

the amount of the compensation which the court will be requested to approve or

allow and the manner in which the compensation was determined.

      4.  On the hearing, the court shall make an

order fixing and allowing the compensation for all services rendered in the

estate proceeding. The order must authorize the personal representative to pay

the attorney out of the estate the amount of compensation allowed by the court

pursuant to this subsection less any amount paid to the attorney out of the

estate pursuant to NRS 150.065.

      (Added to NRS by 2009, 1631)

RENDERING OF EXHIBITS AND ACCOUNTS

      NRS 150.070  Liability of personal representative; accounting required for

property sold over inventoried value.

      1.  A personal representative is

accountable for the whole estate that comes into the possession of the personal

representative at the value of the appraisement contained in the inventory,

except as otherwise provided in this title, and for all the interest, profit

and income of the estate.

      2.  A personal representative is not

accountable for any debts due the decedent that remain uncollected without his

or her fault.

      3.  A personal representative shall not

make profit by the increase nor suffer loss by the decrease or destruction of

any part of the estate without his or her fault. The personal representative

shall account for the excess when any part of the estate is sold for more than

the inventoried value and, if any assets are sold for less than that value, the

personal representative is not responsible for the loss if the sale has been

made according 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  Waiver of accounting.  Notwithstanding

any other provision of this chapter, the court may waive the requirement of any

accounting if all interested persons agree in writing to the waiver.

      (Added to NRS by 2001, 2348)

      NRS 150.080  First account: Filing and contents.  Within

6 months after the appointment of a personal representative, or sooner if

required by the court, upon its own motion or upon the petition of an

interested person, a personal representative shall file with the clerk the

first, verified account, showing:

      1.  The amount of money received and

expended by the personal representative.

      2.  The claims filed or presented against

the estate, giving the name of each claimant, the nature of his or her claim,

when it became due or will become due, whether it was allowed or rejected by

the personal representative, or not yet acted upon.

      3.  All other matters necessary to show the

condition of the estate.

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

      NRS 150.100  Penalties for failure to file first account.

      1.  If the personal representative fails to

file the first account within the time specified in NRS

150.080, the court shall order a citation to issue requiring the personal

representative to file the account by a time to be stated in the citation, as

fixed by the court, or appear and show cause why the personal representative

should not be compelled to file the account.

      2.  If the personal representative fails to

file the account by the time stated, or show cause why not, the court, by

attachment or other proper process, may compel the personal representative to

file such an account or may revoke the letters, or both, and like action may be

taken in reference to any subsequent account the personal representative may be

required to file.

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

      NRS 150.105  Annual account: Contents.  Until

all remaining property is delivered pursuant to an order of final distribution,

a personal representative shall file with the court, annually, an account

showing the income the personal representative has received, what expenditures

he or she has made, what property has been disbursed, or sold and at what

price, and the nature and value of the property remaining on hand.

      (Added to NRS by 1999, 2329)

      NRS 150.110  Final account: Filing; penalties for failure to file.

      1.  If all the property of an estate has

been sold or there is money available for the payment of all debts due by the

estate, and the estate is in a proper condition to be closed, the personal

representative shall file a final account and request a settlement of his or

her administration.

      2.  If the personal representative neglects

to file a final account, the same proceedings may be had as prescribed in this

chapter in regard to the first account to be filed by the personal

representative, and all the provisions relative to the first account, and the

notice and settlement thereof, 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  Supplementary account to final account.  A

supplementary account of any receipts and disbursements by the personal

representative since the filing of the final account of the personal

representative must be filed before or at the time of making a final

distribution, unless the distribution is only of real property. A settlement of

the supplementary account, together with an estimate of the expense of closing

the estate, must be entered by the court and included in the order. The court

may order notice of the settlement of the supplementary account.

      (Added to NRS by 1999, 2329)

      NRS 150.120  Accounting when authority of personal representative ceases.  If the 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 instance of the person succeeding to the

administration of the same estate, in like manner as the personal

representative might have been by any interested person during the term of the

appointment.

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

      NRS 150.130  Accounts of deceased or incapacitated personal representative:

Accounting by personal representative, guardian or attorney.

      1.  If a personal representative dies or

becomes incapacitated, the accounts may be presented to the court by the

personal representative or guardian of the former personal representative. Upon

petition of a successor to the deceased or incapacitated personal

representative, the court shall compel the personal representative or guardian

to file an account of the administration. The court shall settle such an

account as in other cases.

      2.  In the absence of a personal

representative or guardian of the deceased or incapacitated personal

representative, the court may compel an attorney to file an account of the

administration to the extent that the attorney has information or records

available for that purpose. The account of the attorney need not be verified. A

fee must be allowed the attorney by the court for this extraordinary service.

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

      NRS 150.140  Revocation of letters when personal representative absconds and

fails to account.  If the personal

representative absconds, or if, after reasonable diligence, he or she cannot be

found, so that a citation cannot be personally served, and the personal

representative neglects to file an account within 20 days after the time fixed

for that purpose, the letters must be revoked.

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

      NRS 150.150  Vouchers for payments: Filing not required; examination and

audit; lost or unavailable.

      1.  A personal representative need not file

vouchers with the court to substantiate payments made in the administration of

the estate, but shall retain possession of the vouchers and permit their

examination by the court or an interested person.

      2.  The court, on its own motion or on

application ex parte for good cause by an interested person, may order

production for examination and audit the vouchers that support an account

specified in the order.

      3.  If any vouchers are lost, or for other

good reason cannot be produced on settlement of an account, the payment may be

proved by the oath of one competent witness. If it is proven that vouchers for

any disbursements have been lost or destroyed, that it is impossible to obtain

duplicates, and that the expenses were paid in good faith and were legal

charges against the estate, the personal representative must be allowed those

expenses.

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

      NRS 150.160  Account and petition for settlement: Hearing and notice.

      1.  If an account and a petition for

settlement thereof is filed, the clerk shall set the petition for hearing and

the petitioner shall give notice for the period and in the manner required by NRS 155.010.

      2.  If the account is for a final

settlement and a petition 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 as possible.

      [215:107:1941; 1931 NCL § 9882.215]—(NRS A 1975,

1777; 1987, 782;

1999, 2334)

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

      1.  An interested person may appear and

file written objections to the account and contest it.

      2.  Upon the hearing, the personal

representative may be examined under oath concerning the account and the

property and effects of the decedent and the disposition thereof.

      3.  All matters, including allowed claims

not addressed in the settlement of any former account and not reduced to

judgment, may be contested for cause shown.

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

      NRS 150.180  Appointment of attorney to represent minor, unborn,

incapacitated or absent heirs and devisees; fees.

      1.  If a minor is interested in the estate

who has no legally appointed guardian, the court may appoint a disinterested

attorney to represent the minor who may contest the account as any other

interested person might contest it.

      2.  The court may also appoint an attorney

to represent unborn, incapacitated or absent heirs and devisees.

      3.  An attorney so appointed must be paid

as provided in NRS 150.060.

      [218:107:1941; 1931 NCL § 9882.218]—(NRS A 1971, 504;

1999, 2335;

2001, 2348)

      NRS 150.190  Proof of notice necessary before allowance of account.  No account may be allowed by the court until

it is first proved that the notice required by this chapter has been given, and

the order must show that such proof was made to the satisfaction of the court.

The order is conclusive evidence of the fact.

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

      NRS 150.200  Allowance and confirmation of account.  If

an account comes before the court for allowance and there are no objections

filed by any interested person, and the account is made to appear to the court

to be correct and 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  Effect of order settling account.  An

order settling and allowing an account, when it becomes final, is conclusive

against all interested persons, but a person under legal disability has the

right to move for cause to reopen and examine the account, or to proceed by

action against the personal representative or his or her sureties at any time

before final distribution, and in any such action, the order is prima facie

evidence of the correctness of the account.

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

PAYMENT OF DEBTS, EXPENSES AND CHARGES

      NRS 150.225  Payments to be made according to will; sources of payment if

provision or property of will insufficient.

      1.  If a testator makes provision by will,

or designates property to be appropriated, for the payment of debts, the

expenses of administration or family allowances, they must be paid according to

that provision or out of the property thus appropriated, to the extent that the

provision or property is sufficient.

      2.  To the extent the provision or property

is insufficient, any portion of the estate not disposed of by the will must be

appropriated for that purpose. To the extent that is not sufficient, the

property given to residuary devisees, and thereafter all other property

devised, is liable for those obligations in proportion to the value or amount

of the respective devises, but specific devises are exempt from that liability

if exemption appears to the court necessary to carry out the intent of the

testator and there is other sufficient property.

      (Added to NRS by 1999, 2329)

      NRS 150.230  Duty to pay certain expenses, allowances, debts and claims upon

receipt of sufficient money; discretion to pay certain smaller debts; funeral

expenses and expenses of last illness not charged to community share of

surviving spouse.

      1.  The personal representative shall, as

soon as sufficient money is available, upon receipt of a sworn statement of the

amount due and without any formal action upon creditors’ claims, pay the

funeral expenses, the expenses of the last illness, the allowance made to the

family of the decedents, money owed to the Department of Health and Human

Services as a result 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

services rendered within 3 months before the death of the employer, but may

retain the necessary expenses of administration.

      2.  The personal representative is not

obliged to pay any other debt or any devise until the payment is ordered by the

court.

      3.  The personal representative may, before

court approval or order, pay any of the decedent’s debts amounting to $500 or

less if:

      (a) Claims for payment thereof have been properly

filed in the proceedings;

      (b) The debts are legally due; and

      (c) The estate is solvent.

Ê In settling

the account of the estate, the court shall allow any such payment if the

conditions of paragraphs (a), (b) and (c) have been met. Otherwise, the

personal representative is personally liable to any person sustaining loss or

damage as a result of the payment.

      4.  Funeral expenses and expenses of a last

illness are debts payable out of the estate of the decedent and must not be

charged to the community share of a surviving spouse, whether or not the

surviving spouse is financially able to pay those expenses and whether or not

the surviving spouse or 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  Order of court for payment of debts; treatment of classes of

creditors; discharge of personal representative upon compliance with order if

property of estate exhausted.

      1.  Upon the settlement of any account of

the personal representative after the time to file claims has expired, the

court shall order the payment of the debts as the circumstances of the estate

permit. If there is not sufficient money to pay all of the debts, the order

must specify the sum to be paid to each creditor.

      2.  No creditor of any one class may

receive any payment until all those of a preferred class are fully paid, and if

the estate is insufficient to pay all debts of any one class, each creditor of

that class must be paid a dividend in proportion to that creditor’s claim.

      3.  If the property of the estate is

exhausted by the payment ordered, the account constitutes a final account, and

the personal representative is entitled to his or her discharge upon filing the

necessary proof showing that he or she has complied with the order.

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

      NRS 150.250  Claims not yet due and contingent or disputed claim.

      1.  If there is a claim not due, or any

contingent or disputed claims against the estate, the amount thereof, or such

part of the amount as the holder would be entitled to if the claim were due,

established or absolute, must be paid to the clerk and there remain, to be paid

over to the holder when the holder becomes entitled thereto or, if the holder

fails to establish a claim, to be paid over or distributed as the circumstances

of the estate require.

      2.  If a creditor whose claim has been

allowed but is not yet due appears and assents to a deduction therefrom of the

legal interest for the time the claim has yet to run, the creditor is entitled

to be paid accordingly.

      3.  The payments provided for in this

section are not to be made if the estate is insolvent unless a pro rata

distribution is ordered.

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

      NRS 150.260  Liability of personal representative.

      1.  If an order is entered by the court for

the payment of creditors, the personal representative is personally liable to

each creditor for the amount of his or her claim, or the dividends thereon, and

execution may be issued upon the order as upon a judgment in any other action,

in favor of each creditor, and the same proceedings may be had under the

execution as if it had been issued upon a judgment.

      2.  The personal representative is also

liable on his or her bond to each creditor.

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

      NRS 150.270  Claim not included in order of payment.  After

the accounts of the personal representative have been settled and an order

entered for the payment of debts and distribution of the estate, no creditor

whose claim was not included in the order for payment has any right to call

upon the creditors who have been paid, nor upon the heirs or devisees to

contribute to the payment of the claim, but if the personal representative has

failed to give the notice to creditors, as prescribed by law, that creditor may

recover on the bond of the personal representative the amount for which the

claim would properly have been allowed.

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

      NRS 150.280  Closing administration.

      1.  If all the debts and liabilities of an

estate have been paid, and the estate is in a condition to be closed, the court

shall direct the payment of devises and the distribution of the estate among

those entitled 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 the estate among those entitled at such time as it thereafter may be in a

condition to be closed.

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

APPORTIONMENT OF FEDERAL ESTATE TAX

      NRS 150.290  Short title.  NRS 150.290 to 150.380,

inclusive, may be 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 150.290 to 150.380,

inclusive, unless the context otherwise requires:

      1.  “Gross estate” or “estate” means all

property included for federal estate tax purposes in determining the federal

estate tax pursuant to the federal estate tax law.

      2.  “Person interested in the estate” means

any person who receives or is the beneficiary of any property transferred

pursuant to a transfer which is subject to a tax imposed by any federal estate

tax law, now existing or hereafter enacted.

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

      NRS 150.310  Proration of tax among persons interested in estate; exceptions.

      1.  If it appears upon any accounting, or

in any appropriate action or proceeding, that a personal representative,

trustee or other fiduciary has paid or may be required to pay an estate tax to

the Federal Government under the provisions of any federal estate tax law, now

existing or hereafter enacted, upon or with respect to any property required to

be included in the gross estate of a decedent under the provisions of any such

law, the amount of the tax must be equitably prorated among the persons

interested in the estate, whether residents or nonresidents of this State, to

whom the property was, is or may be transferred or to whom any benefit accrues,

except:

      (a) Where a testator otherwise directs in his or

her will.

      (b) Where by written instrument, including,

without limitation, an electronic trust, executed inter vivos direction is

given for apportionment among the beneficiaries of taxes assessed upon the

specific fund dealt with in the instrument.

      2.  As used in this section, “electronic

trust” has the meaning ascribed to it in NRS

163.0015.

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

      NRS 150.320  Direction for apportionment of estate tax: Precedence;

limitation.

      1.  A testator, settlor, or possessor of

any appropriate power of appointment may direct how the estate tax shall be

apportioned or allocated or grant a discretionary power to another so to

direct. Any such direction shall take precedence insofar as the direction

provides for the payment of the estate tax or any part thereof from property

the disposition of which can be controlled by the instrument containing the

direction or delegating the power to another.

      2.  Any direction as to apportionment or

nonapportionment of the tax, whether contained in a will or in a

nontestamentary instrument, shall be limited in its operation to the property

passing thereunder unless such will or instrument otherwise directs.

      (Added to NRS by 1957, 228)

      NRS 150.330  Jurisdiction of court; methods of proration.

      1.  The proration must be made by the court

having jurisdiction of any property in the estate in the proportion that the

value of the property, interest or benefit of each such person bears to the

total value of the property, interest and benefits received by all such persons

interested in the estate.

      2.  In making a proration, allowances must

be made for any exemptions granted by the act imposing the tax and for any

deductions allowed by that act for the purpose of arriving at the value of the

net estate.

      3.  Any exemption or deduction allowed by

reason of the relationship of any person to the decedent or by reason of the

charitable purposes of the gift inures to the benefit of the person bearing the

relationship or receiving the charitable gift, except that, if an interest is

subject to a prior present interest which is not allowable as a deduction, the estate

tax apportionable against the present interest must be paid from principal.

      4.  A deduction for property previously

taxed and a credit for gift taxes or taxes of a foreign country paid by the

decedent or the estate of the decedent inures to the proportionate benefit of

all persons liable to apportionment.

      5.  A credit for inheritance, succession or

estate taxes or taxes in the nature thereof in respect to property or interests

includable in the gross estate inures to the benefit of the persons or interests

chargeable with the payment of the taxes to the extent or in proportion that

the tax paid or payable reduces the estate tax.

      6.  To the extent that property passing to

or in trust for a surviving spouse does not constitute an allowable deduction

solely by reason of an inheritance tax or other death tax imposed upon and

deductible from such property, it must not be included in the computation

provided for in subsection 1, and to that extent, no apportionment may be made

against that property.

      7.  The values used for federal estate tax

purposes are the values used as the basis for apportionment.

      8.  If the court finds that it is

inequitable to apportion interest and penalties in the same manner as the

principal of the estate tax by reason of special circumstances, it may direct

apportionment of interest and penalties in a manner different from principal.

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

      NRS 150.340  Present and future estates: Charge of tax against corpus without

apportionment.

      1.  In cases where a trust is created, or

other provision made whereby any person is given any interest in income, or an

estate for 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

shall be charged against and paid out of the corpus of such property or fund

without apportionment between remainders and temporary estates.

      2.  The provisions of subsection 1 shall

apply notwithstanding that the holder of a temporary interest is given rights

to the corpus, but shall not apply to a common-law annuity.

      (Added to NRS by 1957, 229)

      NRS 150.350  Property not possessed by personal representative: Recovery from

person in possession or interested in estate; court may direct payment;

expenses.

      1.  If any property required to be included

in the gross estate does not come into the possession of the personal

representative, the personal representative shall recover from whoever is in

possession, or from the persons interested in the estate, the proportionate

amount of the tax payable by the persons interested in the estate with which

the persons interested in the estate are chargeable. The court may direct the

payment of that amount by those persons to the personal representative.

      2.  The provisions of subsection 1 also

apply to persons in possession of or interested in real or personal property

located in or subject to administration in another state and required to be

included in the gross estate of a resident of this State, unless the other

state refuses to enforce the apportionment, in which case apportionment may be

made in accordance with the law which would be applied by the other state.

      3.  A person interested in the estate from

whom apportionment is required under subsections 1 and 2 must also be charged

with the amount of reasonable expenses, including the personal representative’s

and attorney’s fees, in connection with the determination of the tax and the

apportionment thereof. Those expenses must be determined and collected in like

manner as the tax.

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

      NRS 150.360  Court order directing amounts of tax to be charged against or

paid by takers of estate.

      1.  The court, upon making a determination

as provided in NRS 150.290 to 150.380, inclusive, shall enter an order directing the

personal representative or other fiduciary to charge the determined amounts

against the persons against whom the tax has been prorated insofar as the

personal representative or other fiduciary is in possession of property or

interests of those persons against whom the charge may be made, and summarily

directing all other persons against whom the tax has been prorated or who are

in possession of property or interests of those persons to make payment of the

determined amounts to the personal representative or other fiduciary.

      2.  The orders may be preliminary,

intermediate or final.

      3.  If the personal representative or other

fiduciary holds property of a person liable to apportionment which is

insufficient to satisfy the determined amount, the court may direct that the

balance be paid by the person liable.

      4.  If it appears that the personal

representative or other fiduciary cannot recover the amount apportioned against

any person, the amount not recovered must be charged in such manner as the

court may determine.

      5.  If an overpayment is made the court may

direct appropriate reimbursement.

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

      NRS 150.370  Retention of jurisdiction by court.  The

court shall retain jurisdiction until the purposes of NRS

150.290 to 150.380, inclusive, have been

accomplished.

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

      NRS 150.380  Apportionment of tax and expenses imposed and incurred on

property located or administered in this State in estate of nonresident.  Tax imposed and expenses incurred by reason of

inclusion for tax purposes of property located or administered in this State,

in the estate of a nonresident of this State, shall be apportioned in accordance

with the law of the decedent’s domicile, applicable to property located

therein.

      (Added to NRS by 1957, 230)

OTHER FEDERAL TAXES

      NRS 150.400  Apportionment; limitations.

      1.  Except as otherwise provided by the

donor or decedent in writing:

      (a) Except as otherwise provided in paragraph

(c), for gifts that were made subject to the federal gift tax and in cases

where the decedent’s estate is insufficient to pay all federal gift taxes due

at the time of the decedent’s death, the unpaid federal gift tax must be borne

on a pro rata basis by those receiving the transfers that triggered the tax in

the proportion that the value of the property, interest or benefit of each such

person bears to the total value of the property subject to the federal gift

tax.

      (b) The federal generation-skipping transfer tax

must be borne on a pro rata basis by those persons receiving the transfers that

triggered the tax in the proportion that the value of the property, interest or

benefit of each such person bears to the total value of the property subject to

the federal generation-skipping transfer tax.

      (c) The application of exclusions, exemptions,

deferrals or other provisions of the law available at the time of each transfer

must be applied in chronological order to the transfers to which they relate.

      (d) To the extent issues remain unresolved after

applying the principles set forth in paragraphs (a), (b) and (c), the

provisions of NRS 150.290 to 150.380,

inclusive:

             (1) Must be applied to determine the

allocation, apportionment and collection of federal transfer taxes other than

the federal estate tax, including, without limitation, the federal gift tax and

the federal generation-skipping transfer tax; and

             (2) Must be applied to determine the

procedures for the judicial determination of the apportionment of federal

transfer taxes other than the federal estate tax, including, without

limitation, the federal gift tax and the federal generation-skipping transfer

tax.

      2.  Notwithstanding the provisions of

subsection 1:

      (a) This section must not be construed to allow

the apportionment or enforcement of the collection of any tax to the extent

such tax has not been paid and the collection thereof is no longer enforceable

under applicable federal law; and

      (b) A recipient of a transfer is not required to

pay tax in an amount that exceeds the value of the property received by the

recipient or the maximum amount payable by the recipient under federal law,

whichever is less.

      3.  As used in this section, “estate” means

all property included for federal estate tax purposes in determining the

federal estate tax pursuant to the federal estate tax law.

      (Added to NRS by 2009, 1631;

A 2011, 181)