Nrs: Chapter 147 - Presentation And Payment Of Claims

Link to law: https://www.leg.state.nv.us/NRS/NRS-147.html
Published: 2015

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[Rev. 2/10/2015 4:21:23

PM--2014R2]

CHAPTER 147 - PRESENTATION AND PAYMENT OF

CLAIMS

PRESENTATION

NRS 147.010           Notice

to creditors.

NRS 147.020           Death,

resignation or removal of personal representative after expiration of time for

notice: No further notice necessary.

NRS 147.030           Filing

of notice and affidavit of publication or certificate of mailing.

NRS 147.040           Claims:

Limit on time for filing.

NRS 147.050           Claims

of personal representative.

NRS 147.060           Claims

of district judge.

NRS 147.070           Claims

for $250 or more must be supported by affidavit; correction or amendment of

defective claim or affidavit.

NRS 147.080           Claims

founded on written instrument or secured by mortgage or lien.

NRS 147.090           Effect

of statute of limitations.

NRS 147.100           Actions

and proceedings pending against decedent or property in estate of decedent.

NRS 147.110           Examination

of claims by personal representative: Allowance or rejection; effect of failure

to act on claims; untimely claims.

NRS 147.120           Status

of approved claims.

NRS 147.130           Rejection

of claim; notice; time to file suit; procedure if claim of Department of Health

and Human Services rejected; service of summons; removal of personal

representative for default.

NRS 147.140           Vacancy

in administration.

NRS 147.150           Claims

must be filed and rejected; exception for mortgage.

NRS 147.160           Offer

of partial allowance of claim.

NRS 147.170           Reference

of controversy.

NRS 147.180           Compromise

of claim or action against estate: Petition; notice of hearing; execution of

conveyances.

NRS 147.190           Reimbursement

for costs.

PAYMENT OF CLAIMS

NRS 147.195           Debts

and charges of estate: Priority of payment.

NRS 147.200           Status

of judgment against estate.

NRS 147.210           Execution

of judgment entered against decedent before decedent’s death; execution levied

upon property of decedent during decedent’s lifetime; conversion of lien of

attachment.

NRS 147.220           Interest

on claims.

NRS 147.230           Personal

representative not chargeable with debts of estate except under written

agreement.

_________

 

PRESENTATION

      NRS 147.010  Notice to creditors.  A

personal representative shall publish 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 for notice: No further notice necessary.  If a personal representative dies, resigns or

is removed after the expiration of the time for the publication or mailing of

notice to creditors, the successor need not give any further notice to

creditors.

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

      NRS 147.030  Filing of notice and affidavit of publication or certificate of

mailing.  After the notice to

creditors has been mailed or published, 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 person having a claim, due or to

become due, against the decedent must file the claim with the clerk within 90

days after the mailing for those required to be mailed, or 90 days after the

first publication of the notice to creditors pursuant to NRS 155.020.

      2.  A creditor who receives a notice to

creditors by mail pursuant to subsection 5 of NRS 155.020 must file a claim with the

clerk within 30 days after the mailing or 90 days after the first publication

of notice to creditors pursuant to NRS

155.020, whichever is later.

      3.  If a claim is not filed with the clerk

within the time allowed by subsection 1 or 2, the claim is forever barred, but

if it is made to appear, by the affidavit of the claimant or by other proof to

the satisfaction of the court, that the claimant did not have notice as

provided in NRS 155.020 or actual

notice of the administration of the estate, the claim may be filed at any time

before the filing of the final account.

      4.  The period of 90 days prescribed by

this section is reduced 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  Claims of personal representative.

      1.  If a personal representative is a

creditor of the decedent, the claim must be filed with 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 it must be paid as other claims

in due course of administration.

      2.  If the court rejects the claim, action

thereon may be brought by the personal representative as claimant against the

estate, and summons must be served upon the court, which shall appoint an

attorney, at the expense of the estate, to defend the action. If the claimant

fails to recover, the claimant must pay all costs, including reasonable

attorney’s fees for the estate, to be fixed by the court.

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

      NRS 147.060  Claims of district judge.

      1.  If

a judge of the district court files or presents a claim against the estate of a

decedent, the administration of which is pending before that judge, the judge

must designate, in writing, some other district judge who, upon presentation of

the 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 other persons whose claims are rejected.

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

      NRS 147.070  Claims for $250 or more must be supported by affidavit;

correction or amendment of defective claim or affidavit.

      1.  A claim for an amount of $250 or more

filed with the clerk must be supported by the affidavit of the claimant that:

      (a) The amount is justly due (or if the claim is

not yet due, that the amount is a just demand and will be due on the ..... day

of ........).

      (b) No payments have been made thereon which are

not credited.

      (c) There are no offsets to the amount demanded

to the knowledge of the claimant or other affiant.

      2.  Every claim filed with the clerk must

contain the mailing address of the claimant. Any written notice mailed by a

personal representative to the claimant at the address furnished is proper

notice.

      3.  When the affidavit is made by any other

person than the claimant, the reasons why it is not made by the claimant must

be set forth in the affidavit.

      4.  The oath may be taken before any person

authorized to administer oaths.

      5.  The amount of interest must be computed

and included in the statement of the claim and the rate of interest determined.

      6.  Except as otherwise provided in

subsection 7, the court may, for good cause shown, allow a defective claim or

affidavit to be corrected or amended on application made at any time before the

filing of the final account, but an amendment may not be made to increase the

amount of a claim after the time for filing a claim has expired.

      7.  The court shall allow the Department of

Health and Human Services to amend at any time before the filing of the final

account a claim for the payment of benefits for Medicaid that the Department

identifies after 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  Claims founded on written instrument or secured by mortgage or

lien.

      1.  If a claim is founded upon a bond,

bill, note or other instrument, the original instrument need not be filed, but

a copy, with all endorsements, must be attached to the statement of the claim

and filed therewith.

      2.  If a claim is secured by a mortgage or

lien, a certified copy of the mortgage or lien must be attached to the claim

and filed with the clerk.

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

      NRS 147.090  Effect of statute of limitations.  A

claim which is barred by the statute of limitations must not be allowed or

approved by a personal representative or by the court. No claim which has been

timely filed is affected by the statute of limitations, pending the

administration of the estate.

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

      NRS 147.100  Actions and proceedings pending against decedent or property in

estate of decedent.

      1.  Except as otherwise ordered by the

court for good cause shown, an action or proceeding pending against a decedent

at the time of the decedent’s death may not be continued against the decedent’s

personal representative unless:

      (a) A claim is first filed as provided in this

chapter;

      (b) The claim is rejected in whole or in part;

and

      (c) Within 60 days after notice of rejection is

given, the claimant who is the plaintiff applies to the court in which the

action or proceeding is pending for an order substituting the personal

representative in the action or proceeding. This requirement applies only if

the notice of rejection contains a statement that the claimant has 60 days

within which to apply for an order of substitution.

      2.  No recovery may be allowed in an action

against property in the estate of a decedent unless proof is made of compliance

with this section.

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

      NRS 147.110  Examination of claims by personal representative: Allowance or

rejection; effect of failure to act on claims; untimely claims.

      1.  Within 15 days after the time for filing

claims has expired, as provided in this chapter, the personal representative

shall examine all claims filed and shall either endorse on each claim an

allowance or rejection, with the day and the year thereof, or shall file a

notice of allowance or rejection with the date and the year thereof, and the

notice of allowance or rejection must be attached to the claim allowed or

rejected and filed with the clerk.

      2.  If a personal representative refuses or

neglects to endorse on a claim an allowance or rejection within 15 days, as

specified in this section, or does not file a notice of allowance or rejection,

the claim shall be deemed rejected, but the personal representative may,

nevertheless, allow the claim at any time before the filing of the final

account.

      3.  A personal representative need not

allow or reject a 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  Status of approved claims.  All

claims approved by the personal representative or the court must be ranked

among the acknowledged debts 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  Rejection of claim; notice; time to file suit; procedure if

claim of Department of Health and Human Services rejected; service of summons;

removal of personal representative for default.

      1.  If a claim is rejected by the personal

representative or the court, in whole or in part, the claimant must be

immediately notified by the personal representative, and the claimant must

bring suit in the proper court against the personal representative within 60

days after the notice or file a timely petition for summary determination

pursuant to subsection 2, whether the claim is due or not, or the claim is

forever barred. A claimant must be informed of the rejection of the claim by

written notice forwarded to the claimant’s mailing address by registered or

certified mail.

      2.  If a claim filed by the Department of

Health and Human Services is rejected by the personal representative, the

Director of the Department may, within 20 days after receipt of the written

notice of rejection, petition the court for summary determination of the claim.

A petition for summary determination must be filed with the clerk, who shall

set the petition for hearing, and notice must be given for the period and in

the manner required by NRS 155.010.

Allowance of the claim by the court is sufficient evidence of its correctness,

and it must be paid as if previously allowed by the personal representative.

      3.  In any action brought upon a claim

rejected in whole or in part by the personal representative, if the personal

representative resides out of the State or has departed from the State, or

cannot, after due diligence, be found within the State, or conceals himself or

herself to avoid the service of summons, the summons, together with a copy of

the complaint, must be mailed directly to the last address given by the

personal representative, with a copy to the attorney for the estate, and proof

of the mailing must be filed with the clerk where the administration of the

estate is pending. This service is the equivalent of personal service upon the

personal representative, but he or she has 30 days from the date of service

within which to answer.

      4.  If the personal representative defaults

after such service, the default is sufficient grounds for his or her removal as

personal representative by the court without notice. Upon petition and notice,

in the manner provided for an application for letters of administration, an

administrator or an administrator with the will annexed must be appointed by

the court and, upon his or her qualification as such, letters of administration

or letters 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  Vacancy in administration.  The

time during which there is a vacancy in the administration must not be included

in any limitations prescribed 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  Claims must be filed and rejected; exception for mortgage.  No holder of a claim against an estate may

maintain an action thereon unless the claim is first filed with the clerk and

the claim is rejected in whole or in part, except in the following case: An

action may be brought by the holder of a mortgage to enforce the mortgage

against the property of the estate subject thereto if all recourse against any

other property of the estate is expressly waived in the complaint.

      [Part 120:107:1941; 1931 NCL § 9882.120] + [Part 126:107:1941;

1931 NCL § 9882.126]—(NRS A 1999, 2312)

      NRS 147.160  Offer of partial allowance of claim.

      1.  A personal representative who, or a

court which, acts upon a filed claim shall endorse on the claim the amount

offered to be allowed.

      2.  If the creditor refuses to accept the

amount offered to be allowed in satisfaction of the claim, the creditor shall

recover no costs in any action brought on the claim against the personal

representative unless the creditor recovers a greater amount than that offered

to be allowed.

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

      NRS 147.170  Reference of controversy.

      1.  If the personal representative doubts

the correctness of any claim filed, the personal representative may enter into

an agreement in writing with the claimant to refer the matter in controversy to

some disinterested person, as a master, to be approved by the court, and the

agreement and approval must be filed with the clerk. The court shall enter an

order referring the matter in controversy to the person so selected, or if the

parties consent, the matter may be heard by the court.

      2.  The master must hear and determine the

matter and make a report to the court.

      3.  The same proceedings must be had in all

respects, and the master has the same powers, is entitled to the same

compensation and is subject to the same control as in other cases of reference.

      4.  The court may remove the master,

appoint another, set aside or confirm the report, and adjudge costs, as in

actions against personal representatives, and the judgment of the court thereon

is as valid and effectual, in all respects, as if the judgment had been entered

in an action commenced by ordinary process.

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

      NRS 147.180  Compromise of claim or action against estate: Petition; notice

of hearing; execution of conveyances.

      1.  After the time for the presentation of

claims has expired, the personal representative, with the approval of the

court, may compromise any claim against the estate or any action brought

against the personal representative as such by the transfer of specific assets

of the estate or otherwise.

      2.  To obtain such approval, the personal

representative shall file a petition with the clerk showing the advantage of

the compromise.

      3.  The clerk shall set the petition for

hearing, and the personal representative shall give notice thereof for the

period and in the manner required by NRS

155.010.

      4.  If, under this section, the court

authorizes the transfer of real property of the estate, conveyances must be

executed by the personal representative in the same manner as provided in NRS 148.280, and have the same force and

effect as conveyances executed pursuant to that section.

      5.  A certified copy of the order

authorizing the transfer must be recorded in the office of the recorder of the

county in which the real property, or any portion thereof, is located.

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

      NRS 147.190  Reimbursement for costs.  If

a judgment is recovered with costs against a personal representative, the costs

must be allowed to the personal representative from the accounts of the

administration, unless it appears that the action or proceeding in which the

costs were taxed was prosecuted 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  Debts and charges of estate: Priority of payment.  The debts 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

United States.

      6.  Money owed to the Department of Health

and Human Services as a result of the payment of benefits for Medicaid.

      7.  Wages 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. If there is not sufficient money with

which to pay all such labor claims in full, the money available must be

distributed among the claimants in accordance with the amounts of their

respective claims.

      8.  Judgments rendered against the decedent

in his or her lifetime, and mortgages in order of their date. The preference

given to a mortgage extends only to the proceeds of the property mortgaged. If

the proceeds of that property are insufficient to pay the mortgage, the part

remaining 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  Status of judgment against estate.

      1.  The effect of a judgment rendered

against a personal representative upon a claim for money against the estate of

the decedent is only to establish the claim in the same manner as if it had

been allowed by the personal representative, and the judgment must be that the

personal representative pay, in due course of administration, the amount

ascertained to be due.

      2.  A certified copy of the judgment must

be filed in the estate proceedings.

      3.  No execution may issue upon the

judgment, nor does it create any lien upon the property of the estate, nor give

the judgment creditor any priority of payment.

      4.  This section does not apply to a

judgment of foreclosure of a mortgage.

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

      NRS 147.210  Execution of judgment entered against decedent before decedent’s

death; execution levied upon property of decedent during decedent’s lifetime;

conversion of lien of attachment.

      1.  If a judgment has been entered against

the decedent in the decedent’s lifetime, no execution may issue after death,

but a certified copy of the judgment must be attached to the statement of claim

filed with the clerk and must be acted on as any other claim.

      2.  If an execution has been levied upon

any property of the decedent in the decedent’s lifetime, the property may be

sold for the satisfaction of the judgment, and the officer making the sale

shall account to the personal representative for any surplus in his or her

hands.

      3.  The lien of an attachment may be

converted into the lien of a judgment on property in the estate subject to the

lien of the attachment, with the same priority:

      (a) If the judgment debtor dies after entry of

judgment; or

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

defendant,

Ê in the

action in which the property was attached.

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

      NRS 147.220  Interest on claims.  All

claims paid bear interest from date 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 or July 1, as the case may be, immediately preceding

the date of filing, plus 2 percent, unless a different rate is applicable by

contract or otherwise. The rate of interest must be adjusted accordingly on

each January 1 and July 1 thereafter 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  Personal representative not chargeable with debts of estate

except under written agreement.  No

personal representative is chargeable upon any special promise to assume

liability for damages or to pay the debts of the decedent from his or her own

assets, unless the agreement for that purpose, or some memorandum or note

thereof, is in writing and signed by the personal representative, or by some

other person thereunto specially authorized by the personal representative.

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