The 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
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 )
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.
[207:107:1941; 1931 NCL § 9882.207]—(NRS A 1987, 511; 1999, 2330
)
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
)
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 )
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 fees.
2. On the hearing, the court shall enter an order allowing 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 against the
estate.
[210:107:1941; 1931 NCL § 9882.210]—(NRS A 1977, 1017; 1999, 2330
)
ATTORNEY’S FEES
1. Attorneys for personal representatives are entitled to
reasonable compensation for their services, to be paid out of the
decedent’s estate. The amount must be fixed by agreement between the
personal representative and the attorney, subject to approval by the
court, after petition, notice and hearing as provided in subsection 2. 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 must contain specific
and detailed information supporting 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 a determination
of entitlement.
2. The clerk shall set the petition for hearing, and the
petitioner shall give notice of the petition to the personal
representative if he 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.
3. 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.
4. An heir or devisee may file objections to a petition filed
pursuant to this section, and the objections must be considered at the
hearing.
5. 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 him 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 )
RENDERING OF EXHIBITS AND ACCOUNTS
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 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 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 )
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 )
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 him.
2. The claims filed or presented against the estate, giving the
name of each claimant, the nature of his claim, when it became due or
will become due, whether it was allowed or rejected by him, 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 )
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 )
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 he has received, what expenditures he 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 )
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 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 )
A
supplementary account of any receipts and disbursements by the personal
representative since the filing of his final account 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 )
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 )
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 )
If the personal representative absconds,
or if, after reasonable diligence, he 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 )
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 )
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 )
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 )
1. If a minor is interested in the estate who has no legally
appointed guardian, the court may appoint a disinterested attorney to
represent him 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 )
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 )
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 )
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 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
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 )
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.
Ę 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 )
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 discharge upon filing the necessary
proof showing that he has complied with the order.
[225:107:1941; 1931 NCL § 9882.225]—(NRS A 1999, 2337 )
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, he 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 )
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 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 bond to each
creditor.
[228:107:1941; 1931 NCL § 9882.228]—(NRS A 1999, 2337 )
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 )
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 to 150.380 ,
inclusive, may be cited as the Federal Estate Tax Apportionment Law.
(Added to NRS by 1957, 228; A 1999, 2338 )
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 )
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 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 )
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)
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 his estate
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 )
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)
1. If any property required to be included in the gross estate
does not come into the possession of the personal representative, he
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 )
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 )
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 )
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)
|
