AB 314 — Revises various provisions relating to estates. (BDR 2-738)

(c) Farm trucks, farm stock, farm tools, farm equipment, supplies and seed not to exceed $4,500 in value, belonging to the judgment debtor to be selected by the judgment debtor.

(g) For any workweek, 75 percent of the disposable earnings of a judgment debtor during that week, or 50 times the minimum hourly wage prescribed by section [6(a)(1)] 206(a)(1) of the federal Fair Labor Standards Act of 1938, 29 U.S.C.

§ 206(a)(1), and ininderal effect at the time the earnings are payable, whichever is greater.

- *AB314_R2* – 5 – (2) “Earnings” means compensation paid or payable for personal services performed by a judgment debtor in the regular course of business, including, without limitation, compensation designated as income, wages, tips, a salary, a commission or a bonus.

The term includes compensation received by a judgment debtor that is in the possession of the judgment debtor, compensation held in accounts maintained in a bank or any other financial institution or, in the case of a receivable, compensation that is due the judgment debtor.

case of a receivable, compensation (h) All fire engines, hooks and ladders, with the carts, trucks and carriages, hose, buckets, implements and apparatus thereunto appertaining, and all furniture and uniforms of any fire company or department organized under the laws of this State.

- 79th Session (2017) – 5 – (i) All arms, uniforms and accouterments required by law to be keptkep(j) byAll anycourthouses, person,jails, andpublic alsooffices oneand gun,buildings, tolots,. be selected by the debtor.

(j) All courthouses, jails, public offices and buildings, lots, grounds and personal property, the fixtures, furniture, books, papers and appurtenances belonging and pertaining to the courthouse, jail and public offices belonging to any county of this State, all cemeteries, public squares, parks and places, public buildings, town halls, markets, buildings for the use of fire departments and military organizations, and the lots and grounds thereto belonging and appertaining, owned or held by any town or incorporated city, or dedicated by the town or city to health, ornament or public use, or for the use of any fire or military company organized under the laws of this State and all lots, buildings and other school property owned by a school district and devoted to public school purposes.

(l) The homestead as provided for by law, including a homestead for which allodial title has been established and not relinquished and for which a waiver executed pursuant to NRS 115.010115(m) The dwelling of the judgment debtor occupied as a home for himself or herself and family, where the amount of equity held by the judgment debtor in the home does not exceed $550,000 in value and the dwelling is situated upon lands not applicable.owned by the judgment debtor.

(m) The dwelling of the judgment debtor occupied as a home for himself or herself and family, where the amount of equity held by the judgment debtor in the home does not exceed $550,000 in value and the dwelling is situated upon lands not owned by the judgment debtor.

- *AB314_R2* – 6 – (o) All property in this State of the judgment debtor where the judgment is in favor of any state for failure to pay that state’s income tax on benefits received from a pension or other retirement plan.

(p) Any vehicle owned by the judgment debtor for use by the judgment debtor or the judgment debtor’s dependent that is equippedpermanent ordisability.to modified to provide mobility for a person with a permanent(q) disability.Any prosthesis or equipment prescribed by a physician or dentist for the judgment debtor or a dependent of the debtor.

(q) Any prosthesis or equipment prescribed by a physician or dentist for the judgment debtor or a dependent of the debtor.

- 79th Session (2017) – 6 – (1) An individual retirement arrangement which conforms with or is maintained pursuant to the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

§§ 401 et seq.;

and (5) A trust forming part of a qualified tuition program pursuant to chapter 353B of NRS, any applicable regulations adopted pursuant to chapter 353B of NRS and section 529 of the Internal Revenue Code, 26 U.S.C.

(t) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the - *AB314_R2* – 7 – payment of such support and maintenance to which the former spouse may be entitled.

(u) Payments, in an amount not to exceed $16,150, received as compensation for personal injury, not including compensation for pain and suffering or actual pecuniary loss, by the judgment debtor time the payment is received.judgment debtor is dependent at the (v) Payments received as compensation for the wrongful death of a person upon whom the judgment debtor was dependent at the time of the wrongful death, to the extent reasonably necessary for - 79th Session (2017) – 7 – the support of the judgment debtor and any dependent of the jud(w) Payments received as compensation for the loss of future earnings of the judgment debtor or byof a person upon whom the judgment debtor is dependent at the time the payment is received.received, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

(v) Payments received as compensation for the wrongful death of a person upon whom the judgment debtor was dependent at the time of the wrongful death, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

(w) Payments received as compensation for the loss of future earnings of the judgment debtor or of a person upon whom the judgment debtor is dependent at the time the payment is received, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

(aa) Any tax refund received by the judgment debtor that is derived from the earned income credit described in section 32 of the Internal Revenue Code, 26 U.S.C.

§ 32, or a similar credit providedprovidede pursuant to a state law.

- *AB314_R2* – 8 – (4) A power listed in NRS 163.5553 that is held by a trust protector as defined in NRS 163.5547 or any other person regardless of whether the power has been exercised;

and (5) A reserved power in the trust as defined in NRS 163.4165 regardless of whether the power has been exercised.

in NRS 163.4165 (dd) If a trust contains a spendthrift provision:

and - 79th Session (2017) – 8 – (2) Notwithstanding a beneficiary’s right to enforce a support interest, a distribution interest in the trust as defined in NRS 163.4155 that is a support interest as described in NRS 163.4185, if the interest has not been distributed.

(ee) Proceeds received from a private disability insurance plan.

Sec.111.721 N1.

2.

NRS 111.721 is hereby amended to read as follows:

111.721 1.

- *AB314_R2* – 9 – (b) A transfer by deed upon death pursuant to NRS 111.655 to 111.699, inclusive;

[and] - 79th Session (2017) – 9 – (c) Property transferred pursuant to an affidavit as authorized by NRS 146.080 [.] ;

Sec.

3.

NRS 111.779 is hereby amended to read as follows:

Unless otherwise provided by the trust instrument, interests of beneficiaries in all trusts incurring liabilities under this section abate as necessary to satisfy the liability, as if all the trust instrumentsit.truments were a single will and the interests were devises under it.5.

5.

Such a petition may be made pursuant to the applicable provisions of chapter 146 of NRS, including, without limitation, the - *AB314_R2* – 10 – provisions of NRS 146.010, NRS 146.020 without regard to the filing of an inventory and subsection 2 of NRS 146.070.

- 79th Session (2017) – 10 – 7.

If a probate proceeding is pending [,] at the time of filing and it has been determined by a final order issued by the probate court that there are insufficient assets to pay a valid creditor, a proceeding under this section may be commenced by one of the following persons:

(2) If a creditor successfully establishes an entitlement to payment under this section [,] and collects nonprobate transfers, the court must order the reimbursement of the costs reasonablyreasonablyrs, incurred by the creditor, including attorney’s fees, from the transferee from whom the payment is to be made, subject to the limitations of subsection 2, or from the estate as a cost of administration, or partially from each, as the court deems just.

[A personal representative who declines in good faith to commence a requested proceeding incurs no personal liability for declining.] - *AB314_R2* – 11 – 9.

(a) [As to a creditor whose claim was allowed after proceedings challenging disallowance of the claim by the personal - 79th Session (2017) – 11 – representative,] If a probate proceeding is pending in which notice to creditors has been given at the time of filing a proceeding under this section:

(1) As to a creditor whose claim was properly and timely filed, allowed by the personal representative or partially allowed by the personal representative, and accepted by the creditor pursuant by to NRS 147.160, within 60 days after the probate court enters an order confirming the amount of payment of the approved claim that is final and no longer subject to reconsideration or appeal or within 1 year after the decedent’s death, whichever is later.

and (III) Who obtained a favorable final judgment on its claim from the proper court, ¬ within 60 days after the probate court enters an order confirming the amount of payment of the approved claim that is final and no longer subject to reconsideration or appeal or within 1 year after the decedent’s death, whichever is later.

(b) If an action had been commenced against the decedent before the decedent’s death, the creditor receives a judgment against the decedent’s estate and the creditor has filed a proper and timely creditor’s claim against the estate, within 60 days after [final allowance of the claim by] the probate court enters an order confirming the amount of payment of the adjudicated claim that is final and no longer subject to reconsideration or appeal or within 1 year after the decedent’s death, whichever is later.

- *AB314_R2* – 12 – (d) As to all other creditors, within 1 year after the decedent’s death.

Unless a written notice asserting that a decedent’s probate estate is nonexistent or insufficient to pay allowed claims and - 79th Session (2017) – 12 – statutory allowances has been received from the decedent’s personal representative, the following rules apply:

(a) Payment or delivery of assets by a financial institution, registrar or other obligor to a nonprobate transferee in accordance with the terms of the governing instrument controlling the transfer releases the obligor from all claims for amounts paid or assetsassetssfer delivered.

(II) A written simplified employee pension plan which conforms with or is maintained pursuant to the applicable which limitations and requirements of section 408 of the Internal Revenue Code, 26 U.S.C.

§§ 401 et seq.;

and - *AB314_R2* – 13 – (V) A trust forming part of a qualified tuition program pursuant to chapter 353B of NRS, any applicable regulations - 79th Session (2017) – 13 – adopted pursuant to chapter 353B of NRS and section 529 of the Internal Revenue Code, 26 U.S.C.

§ 529, unless the money is deposited after the entry of a judgment against the purchaser or account owner or the money will not be used by any beneficiary to attendattend(3) Propertyr untransferred pursuant to a collegebeneficiary designation by a decedent which transfers money, benefits or university.privileges that accrue in any manner out of life insurance.

(3) Property transferred pursuant to a beneficiary designation by a decedent which transfers money, benefits or privileges that accrue in any manner out of life insurance.

(1) Takes the property free of any claims or of liability to the owner’s estate, creditors of the owner’s estate, persons claiming rights as beneficiaries under the nonprobate transfer or heirs of the owner’s estate, in absence of actual knowledge that the transfer was improper;improp(2) Has no duty to verify sworn information relating to the nonprobate transfer.

and (2) Has no duty to verify sworn information relating to the nonprobate transfer.

- *AB314_R2*79th Session (2017) – 14 – Sec.

A trust instrument may provide that community property or separate property transferred into an irrevocable trust of which both spouses are current permissible beneficiaries remains community property or separate property, as applicable, during the marriage.

and (b) Shall, to the extent practicable, make an equal disposition of the community property of the parties, including, without limitation, any community property transferred into an irrevocable trust pursuant to section 4 of this act over which the court acquires jurisdiction pursuant to NRS 164.010, except that the court may make an unequal disposition of the community property in such proportions as it deems just if the court finds a compelling reason to do so and sets forth in writing the reasons for making the unequal disposition.

The amount of - 79th Session (2017) – 15 – reimbursement must not exceed the value, at the time of the disposition, of the property held in joint tenancy for which the - *AB314_R2* – 15 – contribution of separate property was made.

In determining whether to provide for the reimbursement, in whole or in part, of a party who hashas(a) contributedThe separateintention property,of the courtparties shallin consider:placing the property in joint tenancy;

(a) The intention of the parties in placing the property in joint tenancy;

(a) The community property or liability was included in a prior equal disposition of the community property of the parties or in an unequal disposition of the community property of the parties which was made pursuant to written findings of a compelling reason forforch making that unequal disposition;

- 79th Session (2017) – 16 – 5.

In granting a divorce, the court may also set apart such portion of the husband’s separate property for the wife’s support, the wife’s separate property for the husband’s support or the separate - *AB314_R2* – 16 – property of either spouse for the support of their children as is deemeddee6.d justjIn andthe equitable.event of the death of either party or the subsequent remarriage of the spouse to whom specified periodic payments were to be made, all the payments required by the decree must cease, unless it was otherwise ordered by the court.

6.

In the event of the death of either party or the subsequent remarriage of the spouse to whom specified periodic payments were to be made, all the payments required by the decree must cease, unless it was otherwise ordered by the court.

In addition to any other factors the court considers relevant in determining whether to modify the order, the court shall consider whether the income of the spouse who is ordered to pay alimony, as indicated on the spouse’s federal income tax return for the preceding calendar year, has been reduced to such a level thatthatr the spouse is financially unable to pay the amount of alimony the spouse has been ordered to pay.

- 79th Session (2017) – 17 – (g) The career before the marriage of the spouse who would receive the alimony;

(h) The existence of specialized education or training or the level of marketable skills attained by each spouse during the marriage;mar(i) The contribution of either spouse as homemaker;

- *AB314_R2* – 17 – (i) The contribution of either spouse as homemaker;

(b) The spouse who is ordered to pay the alimony may, upon changedcha(c) circumstances,The filespouse awho motionis the recipient of the alimony may be granted, in addition to modifyany other alimony granted by the order.court, money to provide for:

(c) The spouse who is the recipient of the alimony may be granted, in addition to any other alimony granted by the court, money to provide for:

- 79th Session (2017) – 18 – (II) College courses which are directly applicable to the recipient’s goals for his or her career;

12.more in the gross monthly income of a spouse who is ordered to payor alimony shall be deemed to constitute changed circumstances requiring a review for modification of the payments of alimony.

For the purposes of this section, a change of 20 percent or more in the gross monthly income of a spouse who is ordered to pay alimony shall be deemed to constitute changed circumstances - *AB314_R2* – 18 – requiring a review for modification of the payments of alimony.

or (b) A holder of a power of appointment under the terms of a trust.

A holder of a power of appointment under the terms of a 2.

[,] or [unless, after] - 79th Session (2017) – 19 – 2.

The petition for the probate of a lost or destroyed will must include a copy of the will, or if no copy is available state, or be accompanied by a written statement of, the testamentarytestamentaryble state, words, or the substance thereof.

- *AB314_R2* – 19 – 2.

(a) The production of a person’s lost or destroyed will, whose primary beneficiary is a nontestamentary trust established by the personpresumption andthat inthe existencewill athad hisnot been revoked.eates a rebuttable (b) If the proponent of a lost or herdestroyed death,will createsmakes a rebuttableprima presumptionfacie showing that it was more likely than not left unrevoked by the person whose will hadit notis beenclaimed revoked.to be before his or her death, then the will must be admitted to probate in absence of an objection.

(b) If the proponent of a lost or destroyed will makes a prima facie showing that it was more likely than not left unrevoked by the person whose will it is claimed to be before his or her death, then the will must be admitted to probate in absence of an objection.

Except as otherwise provided in subsections 3 and 4, a no-contest clause in a will must be enforced by the court [.] - 79th Session (2017) – 20 – because public policy favors enforcing the intent of the testator.

However, because public policy does not favor forfeitures, a no- contest clause must be strictly construed by the court and must not be extended beyond the plain meaning of the express provisions of the2.illA no-contest clause must be construed to carry out the will.testator’s intent [.

2.

A no-contest clause must be construed to carry out the testator’s intent [.

No extrinsic evidence is [not] admissible to establish the testator’s intent - *AB314_R2* – 20 – concerning the no-contest clause.

3.devisee’s share must not be reduced or eliminated [if] because of, a any action taken by the devisee [seeks] seeking only to:

Notwithstanding any provision to the contrary in the will, a devisee’s share must not be reduced or eliminated [if] because of any action taken by the devisee [seeks] seeking only to:

Notwithstanding any provision to the contrary in the will, a devisee’s share must not be reduced or eliminated under a no- contest clause because the devisee institutes legal action seeking to invalidate a will if the legal action is instituted and maintained in - 79th Session (2017) – 21 – good faith and based on probable cause that would have led a reasonable person, properly informed and advised, to conclude that the will is invalid.

Unless the will expressly provides otherwise, a no-contest clause in a will applies to a testamentary trust created under that will andandin the provisions of NRS 163.00195 apply to that trust.

As used in this section, “no-contest clause” means one or more provisions in a will that express a directive to reduce or eliminate the share allocated to a devisee or to reduce or eliminate - *AB314_R2* – 21 – the distributions to be made to a devisee if the devisee takes action to frustrate or defeat the testator’s intent as expressed in the will.

An agreement between an heir finder and an apparent heir, the primary purpose of which is to locate, recover or assist in the recovery of an estate for which the public administrator has petitioned for letters of administration, is void and unenforceable if the agreement is entered into during the period beginning with the death of the person whose estate is in probate may extend such a period until 90180 days thereafter.after the death of theurt person.

Upon a showing of good cause, the court may extend such a period until 180 days after the death of the person.

or - 79th Session (2017) – 22 – (c) An attorney providing legal services to a decedent’s family member if the attorney has not agreed to pay to any other person a portion of the fees received from the family member or the family member’s interest in the decedent’s estate.

Sec.140.010.

13.The court shall appoint a special administrator to collect and take charge of the estate of the decedent, in whatever county or counties the estate may be found, and to exercise such other powers as may be necessary to preserve the estate [:] or any rights or privileges belonging to the decedent:

NRS 140.010 is hereby amended to read as follows:

140.010 The court shall appoint a special administrator to collect and take charge of the estate of the decedent, in whatever county or counties the estate may be found, and to exercise such other powers as may be necessary to preserve the estate [:] or any rights or privileges belonging to the decedent:

- *AB314_R2* – 22 – 3.

Give bond in such sum as the court directs, with sureties to the satisfaction of the court, conditioned for the faithful performance of the duties, unless the court waives bond [;] , with or without conditions, or dispenses the bond and alternatively requires the establishment of a blocked account;

andandlternatively requires the 2.

- 79th Session (2017) – 23 – 3.

The deposit is subject to the further order reduced accordingly.] The personal representative shall file with the clerk the acknowledgment of an authorized representative of the court.financial institution that holds the assets deposited, which may be in the following form:

[ThePROOF bondOF ofBLOCKED theACCOUNT personalThe representativeundersigned mayaffirms bethat reduced..........................................., accordingly.]as The personal representative shallof file with the clerkestate the acknowledgment of an............................., authorizeddeceased, representativehas ofestablished thean financialaccount, institutionnumber that........., holdsentitled the“...........,” assets deposited, which may be in the followingamount form:of $............

PROOF OF BLOCKED ACCOUNT The undersigned affirms that ..........................................., as personal representative of the estate of ............................., - *AB314_R2* – 23 – deceased, has established an account, number ........., entitled “...........,” in the amount of $............

(dBy:(dateBy:

Upon the filing of the petition, the clerk shall set it for hearing, and the petitioner shall give notice for the period and in the manner provided in NRS 155.010.

- 79th Session (2017) – 24 – Sec.

143.020 Except as otherwise provided in NRS 143.030 and 146.010, a personal representative has a right to the possession of all the real, as well as personal, property of the decedent and may receive the rents and profits of the property until the estate is settled, or until delivered over by order of the court to the heirs or devisees,devisees,ed, and shall make a reasonable effort to [keep] preserve and maintain all such property, including, without limitation, by keeping in good tenantable repair all houses, buildings and appurtenances thereon which are under the control of the personal representative.

- *AB314_R2* – 24 – (a) Within 6 months after the personal representative’s appointment, where no federal estate tax return is required to be filed for the estate;

The personal representative shall send a copy of the report and shall give notice of the hearing, for the periodper(a) andEach inperson thewhose mannerinterest providedis inaffected NRSas 155.010,an to:heir or devisee;

(a) Each person whose interest is affected as an heir or devisee;

or - 79th Session (2017) – 25 – (b) Revoke the letters of the personal representative, appoint a successor and prescribe a reasonable time within which the successor shall close the estate.

143.037personal 1.representative shall close an estate within 18 months after appointment.

Except as otherwise provided in this section, a personal representative shall close an estate within 18 months after appointment.

and - *AB314_R2* – 25 – [(2)] (II) Pay any fees or costs related to the claim or tax, including fees for appraisals, attorney’s fees and court costs;

(1) A certain amount of money, or certain other assets, be retainedret[(b) andMay, thefor remaindergood ofcause theshown, estateorder distributed;that the]ed;

or [(b) May, for good cause shown, order that the] (2) The entire distributable estate be retained pending disposition of the contest or proceeding.

Except as otherwise provided in NRS 143.520, after notice given as provided in NRS 155.010 or in such other manner as the court directs, the court may authorize the personal representative to continue the operation of the decedent’s business to such an extent and subject to such restrictions as may seem to the - 79th Session (2017) – 26 – court to be for the best interest of the estate and any interested persons.

The provisions of subsection 1 do not apply to passive investments or the exercise of any shareholder or membership rightsrig3.s totUnless whichspecifically authorized by the will or by the court, the personal representative hasmay succeeded.not receive any separate compensation for continuing the operation of the decedent’s business pursuant to this section.

3.

Unless specifically authorized by the will or by the court, the personal representative may not receive any separate compensation for continuing the operation of the decedent’s business pursuant to this section.

A person with whom the - *AB314_R2* – 26 – personal representative may transact business may be made a party to the temporary order.

Notice as the court directs must be given by the petitioner to the personal representative and the attorney of record of the personal representative,temporary iforder.if any, and to any other party named as a party in the temporarySec. order.

Sec.

The requirement of preparing and filing an inventory or [the requirement of filing] an - 79th Session (2017) – 27 – appraisement or a verified record of value, or both, may be waived by the unanimous written consent of all interested persons.

[The] Notwithstanding the provisions of this subsection, an interested person may provide a written request to the personal representative at any time 60 days or more after the issuance of letters of administration which seeks a list of the assets of the estate known to the personal representative.

- *AB314_R2* – 27 – 5.

This section must not be construed to interfere with the authority of a court to order a personal representative to provide the court with information sufficient to identify the assets of an estate and the value thereof that is subject to probate administration, including, without limitation, requiring the personal representative to submit an inventory to the court in camera, as the court deems necessary and appropriate.

court in Sec.

Except as otherwise provided in NRS 144.010, if there is no reasonable doubt as to the value of assets, such as money, deposits in banks or credit unions, bonds, policies of life insurance, or - 79th Session (2017) – 28 – securities for money or evidence of indebtedness, and the asset is equal in value to cash, the personal representative shall file a verified record of value in lieu of the appraisement.

If it appears beyond reasonable doubt that there will be no need to sell assets of the estate to pay the debts of the estate or expenses of administration, or to divide assets for distribution in kind to the devisees or heirs, the personal representative may petition the court for an order allowing a verified record of value to be filed in lieu of the appraisement or, if no interested person is prejudiced thereby, an order waiving the requirement for filing an appraisement or verified record of value, and the court may enter such an order with or without notice.

144.080 If a personal representative neglects or refuses to file the inventory within the time prescribed by law or extended by the - *AB314_R2* – 28 – court, the court may, upon such notice as it deems appropriate [, revoke] :

Order that the fees and costs incurred by the interested person seeking to enforce the provisions of this subsection be satisfied by the bond of the personal representative or, in the absence of a bond, be paid personally by the personal representative;

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 of the validity of the claim pursuant to - 79th Session (2017) – 29 – subsection 2, whether the claim is due or not, or the claim is forever barred.

2.Services] is rejected by the personal representative, [the Director of the Department] a creditor may, within 20 days after receipt of the written notice of rejection, petition the court for [summary] determination of the validity of the claim [.] in lieu of bringing suit against the personal representative pursuant to subsection 1.

If a claim [filed by the Department of Health and Human Services] is rejected by the personal representative, [the Director of the Department] a creditor may, within 20 days after receipt of the written notice of rejection, petition the court for [summary] determination of the validity of the claim [.] in lieu of bringing suit against the personal representative pursuant to subsection 1.

This service is the equivalent of personal service upon the personal - *AB314_R2* – 29 – representative, but he or she has 30 days from the date of service within which to answer.

4.default is sufficient grounds for his or her removal as personalce, the representative by the court without notice.

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.

An action may be brought by the holder of a lien or mortgage to enforce the lien or mortgage against the property of the estate - 79th Session (2017) – 30 – subject thereto if all recourse against any other property of the estate is expressly waived in the complaint.

Notice of the time and place of sale of real property must be published in a newspaper published in the county in which the property, or some portion of the property, is located, if there is one so published, and if not, then in such paper as the court directs, for 2 weeks, being three publications, 1 week apart, before the day of sale or, in the case of a private sale, before the day on or after which the sale is to be made.

If it appears from the inventory and appraisement that the value of the property to be sold does not exceed $5,000, the personal representative may waive the requirement of publication and, in lieu thereof, post a notice of the time and place of sale in three of the most public places in the county in which the property, or some - *AB314_R2* – 30 – portion of the property, is located, for 2 weeks before the day of the sale or, in the case of a private sale, before the day on or after which the sale is to be made.

If [it] the property has not been appraised, a new appraisement must be [had,] performed, as in the case of an - 79th Session (2017) – 31 – original appraisement of an estate , [.

or (b) If the personal representative is the sole devisee or heir of the estate, or if all devisees or heirs consent in writing to salesaleof without an appraisal, [the requirement of an appraisal may be dispensed with and] , in which case the personal representative may rely on the assessed value of the property for taxation in obtaining confirmation of the sale.

If a written offer of 5 percent or $5,000 more in amount than that named in the return is made to the court by a responsible person, as provided in subsection 2, and the bid complies with all provisions of the law, the court may accept the offer and confirm the sale to that person, order a new sale or conduct a public auction in open court.

- *AB314_R2* – 31 – 4.

The order - 79th Session (2017) – 32 – confirming the sale is a sufficient addendum to the original contract to allow escrow to close.

Notwithstanding the provisions of this section, if the estate is subject to a lien or mortgage that exceeds the value of the property and the estate has entered into an agreement with the holder of the lien or mortgage to waive any deficiency as to other estate property and accept the net sales proceeds as full satisfaction of the lien or mortgage, the court shall confirm the sale without accepting bids on the property.

Notwithstanding the provisions of subsection 1, before the entry of an order granting final distribution of the estate, the court may consider a petition filed by the trustee or any beneficiary of the testamentary trust requesting the court to retain jurisdiction of the testamentary trust and, upon good cause shown, the court may orderwith suchthe continuedclerk jurisdiction.of the court before the hearing on the petition for final distribution of the estate and must be served on all interested persons in accordance with NRS 155.010.

Such a petition must be filed with the clerk of the court before the hearing on the petition for final distribution of the estate and must be served on all interested persons in accordance with NRS 155.010.

This section must not be construed to limit the ability of an interested person to subsequently seek submission of a - *AB314_R2* – 32 – testamentary trust to the jurisdiction of the court pursuant to NRS 164.010.

- 79th Session (2017) – 33 – (d) Determining the validity of a provision of the trust;

(f)including Settling the accountsexercise andof reviewingdiscretionary thepowers;acts acts of the trustee, including(g) Instructing the exercisetrustee; of discretionary powers;

(g) Instructing the trustee;

2.petition and the name and address of each interested person, of the including the Attorney General if the petition relates to a charitable trust, and the relief sought by the petition.

A petition under this section must state the grounds of the petition and the name and address of each interested person, including the Attorney General if the petition relates to a charitable trust, and the relief sought by the petition.

- *AB314_R2* – 33 – 3.

(b) Order the trustee to pay to the petitioner or any other party all reasonable costs incurred by the party to adjudicate the affairs of - 79th Session (2017) – 34 – the trust pursuant to this section, including, without limitation, reasonable attorney’s fees.

The trustee may not be held personally liable for the payment of such costs unless the court determines that the trustee was negligent in the performance of or breached his or herherSec. fiduciary duties.

Sec.31.ry NRS 153.041 is hereby amended to read as follows:

31.

NRS 153.041 is hereby amended to read as follows:

Thereafter, subject to any contrary terms of the testamentary trust or an order of the court, the court shall allow the trustee his or her proper expenses and such compensation for services as [the court may deem] are just and reasonable.compensation must be apportioned among [them] the trusteesportion the] according to the respective services rendered [.

Where there are several trustees, [it shall apportion the] compensation must be apportioned among [them] the trustees according to the respective services rendered [.

[, to continue as long as the] The provisions of this section must not be interpreted to abridge the authority of a court [may deem proper.] having jurisdiction over a testamentary trust pursuant to NRS 153.020 or 164.010 to review and settle the expenses and - *AB314_R2* – 34 – compensation of the trustee of a testamentary trust upon the petition of any interested person.

A person named or designated as a trustee of a testamentary trust in a will may, at any time before distribution of - 79th Session (2017) – 35 – any of the estate to the person, decline to act as trustee, and an order of court must be entered accepting the resignation, but the declination of any person who has qualified as trustee may not be accepted by the court unless the testamentary trust is subject to ongoing court jurisdiction pursuant to NRS 153.020 and a petition to accept the declination is filed in the proceeding for administration of the [estate.] testamentary trust.

or 2.(a) Regardless of whether there has been a motion, petition or notice, order that the period be extended if a request for the extension is made before the expiration of the specified period as originally prescribed or as extended by a previous order;

The court, for good cause shown, may at any time:

(a) Regardless of whether there has been a motion, petition or notice, order that the period be extended if a request for the extension is made before the expiration of the specified period as originally prescribed or as extended by a previous order;

- *AB314_R2* – 35 – (a) Certified mail, with a return receipt requested, on each person required to be served;

or - 79th Session (2017) – 36 – (b) Personal service [of summons.] in the manner provided pursuant to Rule 4(d) of the Nevada Rules of Civil Procedure.

If [personal] , after due diligence, service cannot be made upon the person to be served, service of the citation may be [served] made by publication in the manner provided by Rule 4(e) of the Nevada Rules of Civil Procedure, by leaving a copy with thethethe person’s attorney of record or in such other manner as the court may direct.

A trust established or a corporation, limited-liability company or other entity incorporated, organized or registered under the laws of this State that acts as a fiduciary or trustee of an estate or trust administered under the laws of this State may be owned or controlled by the trust if the trust instrument authorizes the trust to own an affiliate.

trust if the trust instrument authorizes the trust to 3.

- *AB314_R2*79th Session (2017) – 3637 – 2.

Except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use, property of a trust authorized by this section may be applied only to its intended use, including, without limitation, appointing trust property to or for the benefit of an existing or new trust whose purposes are limited to one or more purposes of the original trust.

Every devise, beneficial interest or designation to serve as trustee that was given by the settlor to the former spouse or domestic partner of the descendant in a revocable inter vivos trust executed before the entry of the decree of divorce or annulment or the termination of the domestic partnership, unless otherwiseotherwisent or provided in the trust instrument, and the provisions of the trust take effect in the same manner as if the spouse or domestic partner of the descendant predeceased the settlor;

However, because public policy does not favor forfeitures, a no- contest clause must be strictly construed by the court and must not - 79th Session (2017) – 38 – be extended beyond the plain meaning of the express provisions of the trust.

- *AB314_R2* – 37 – 2.

Except] to the extent [the no-contest clause in the trust is vague or ambiguous,] such intent is clear and unambiguous.

(a) Enforce the terms of the trust, any document referenced in or aff(b) Enforce the beneficiary’s legal rights related to the trust, any document referenced in or affected by the trust, or any other trust-related instrument;

(b) Enforce the beneficiary’s legal rights related to the trust, any document referenced in or affected by the trust, or any trust-related instrument;

Notwithstanding any provision to the contrary in the trust, a beneficiary’s share must not be reduced or eliminated under a no- contest clause in a trust because the beneficiary institutes legal action seeking to invalidate a trust, any document referenced in or affected by the trust, or any other trust-related instrument if the legal action is instituted and maintained in good faith and based on - 79th Session (2017) – 39 – probable cause that would have led a reasonable person, properly informed and advised, to conclude that the trust, any document referenced in or affected by the trust, or other trust-related instrument is invalid.

-clause *AB314_R2*must –not 38be –applied 5.to a settlor who is also a beneficiary of the trust.

Unless the trust expressly provides otherwise, a no-contest clause must not be applied to a settlor who is also a beneficiary of the trust.

In the absence of a contrary declaration by the owner of the property or of a transfer of the property to a third party and regardless of formal title to thetheof property:

- 79th Session (2017) – 40 – [4.] (d) An exercise of a power of appointment in trust.

A declaration pursuant to paragraph (a) of subsection 1 may include a schedule or list of trust assets that is signed by the owner of the property or that is incorporated by reference into a document that is signed by the owner of the property.property.rence into a Sec.

- *AB314_R2* – 39 – Sec.

or (b) A written instrument, including, without limitation, an electronic trust, conveying the trust property and signed by the settlor, or by the agent of the settlor if the agent is authorized in writing to do so.

- 79th Session (2017) – 41 – (a) In divided or undivided interests;

Each affected beneficiary must consent before property or money is distributed without proration [,] unless the trust specificallydistribution authorizesis theotherwise trusteeauthorized toby makelaw.that that distribution [.] or the distributionSec. is otherwise authorized by law.

- *AB314_R2* – 40 – Sec.

On petition or ex parte application of a beneficiary or trustee, the court by temporary order, with or without bond, may restrain a trustee from performing specified acts of administration, disbursement or distribution, or exercising any powers or discharging any duties of the office, or enter any other orderNotwithstanding toany secureother properprovision performance of thelaw dutiesgoverning oftemporary. the office.

Notwithstanding any other provision of law governing temporary injunctions, if it appears to the court that the trustee otherwise may take some action that would jeopardize unreasonably the interest of the petitioner, another beneficiary or the trust, the court may enter the temporary order.

Notice of entry of the temporary order must be given by the petitioner to the trustee and the attorney of record of the trustee, if any, to any - 79th Session (2017) – 42 – other party named as a party in the temporary order and as otherwise directed by the court.

The provision of remedies in [subsection 1] this section does not preclude resort to any other appropriate remedy provided by statutesta[3.] or5. common law.

[3.]cA 5.proceeding under this section must be commenced by filing or bringing in conjunction with the filing of a petition under NRS 164.010 and 164.015.

ASec. proceeding under this section must be commenced by filing or bringing in conjunction with the filing of a petition under NRS 164.010 and 164.015.

- *AB314_R2* – 41 – Sec.

Nothing in this section shall be construed to change the existing law with regard to the liability of trustees of charitable trusts for torts of themselves or their employees.employees.ees of charitable Sec.

Sec.

- 79th Session (2017) – 43 – (c) A discretionary interest if the trustee has discretion to determine whether a distribution should be made, when a distribution should be made and the amount of the distribution.

If a trust contains a combination of a mandatory interest, a supportseparated interestas:est or a discretionary interest, the trust must be separated(a) as:A mandatory interest only to the extent of the mandatory language provided in the trust;

(a) A mandatory interest only to the extent of the mandatory language provided in the trust;

- *AB314_R2* – 42 – 3.

Except as otherwise provided in this section, unless the terms of a testamentary instrument or irrevocable trust provide otherwise, a trustee with discretion or authority to distribute trust income or principal to or for a beneficiary of the trust may exercise such discretion or authority by appointing the property subject to such discretion or authority in favor of a second trust as providedpro2.dedThe insecond thistrust section.to which a trustee appoints property of the first trust may only have as beneficiaries one or more of the beneficiaries of the original trust:

2.

The second trust to which a trustee appoints property of the first trust may only have as beneficiaries one or more of the beneficiaries of the original trust:

- 79th Session (2017) – 44 – (a) Appointing the property will reduce any income interest of any incomeinc(1) beneficiaryA oftrust thefor originalwhich trusta ifmarital thededuction originalhas trustbeen is:taken foris:

(1) A trust for which a marital deduction has been taken for federal or state income, gift or estate tax purposes;

(b) The property to be appointed is subject to a power of withdrawal which is held by a beneficiary of the original trust and may be executed at the time of the proposed appointment, unless - *AB314_R2* – 43 – after the exercise of such appointment, the beneficiary of the original trust’s power of withdrawal is unchanged with respect to the trust property.

(d) Property held for the benefit of one or more beneficiaries under both the original and the second trust has a lower value than the value of the property held for the benefit of the same beneficiaries under only the original trust, unless:

A trustee who is a beneficiary of the original trust may not exercise the authority to appoint property of the original trust to a secondsec(a) Under the terms of the original trust if:or pursuant to law governing the administration of the original trust:

(a) Under the terms of the original trust or pursuant to law governing the administration of the original trust:

- 79th Session (2017) – 45 – (2) The trustee’s discretion to make distributions to himself or herself is limited by an ascertainable standard, and under the terms of the second trust, the trustee’s discretion to make distributions to himself or herself is not limited by the same ascerta(3) The trustee’s discretion to make distributions to himself or herself can only be exercised with the consent of a cotrustee or a person holding an adverse interest and under the terms of the second trust the trustee’s discretion to make distributions to himself or herself is not limited by an ascertainable standard;standard and may be exercised without consent;

or (3) The trustee’s discretion to make distributions to himself or herself can only be exercised with the consent of a cotrustee or a person holding an adverse interest and under the terms of the second trust the trustee’s discretion to make distributions to himself or herself is not limited by an ascertainable standard and may be exercised without consent;

- *AB314_R2* – 44 – 5.

§ 672(c), to a beneficiary, may not exercise the authority to appoint property of the original trust to a second trust to the extent that the exercise of the authority by such trustee would have the effect of increasing the distributions that can be made from the second trust to such beneficiary or group of beneficiaries that held the power to remove the trustee of the original trust and replace such trustee with a related or subordinate person, unless the distributions that may be made from the second trust to such beneficiary or group of beneficiaries described in paragraph (a) of subsection 4 are limited by an ascertainable standard.standard.agraph (a) of 6.

6.

- 79th Session (2017) – 46 – 8.

(b) Provide that, at a time or occurrence of an event specified in the trust instrument, the remaining trust assets in the second trusttrustn must be held for the beneficiaries of the original trust upon terms and conditions that are substantially identical to the terms and conditions of the original trust.

- *AB314_R2* – 45 – 11.

The power to appoint property to another trust pursuant to subsection 1 is not a power to amend the trust and a trustee is not prohibited from appointing property to another trust pursuant to subsection 1 if the original trust is irrevocable or provides that it maymay14.t bA trustee’s power to appoint property to another trust pursuant to subsection 1 is not belimited amended.by the existence of a spendthrift provision in the original trust.

14.

A trustee’s power to appoint property to another trust pursuant to subsection 1 is not limited by the existence of a spendthrift provision in the original trust.

[For the purposes of this section, “second trust” means an irrevocable trust that receives trust income or principal appointed by the trustee of the original trust, and may be established by any person, including, without limitation, a new trust created by the - 79th Session (2017) – 47 – trustee, acting in that capacity, of the original trust.

If the trustee of the original trust establishes the second trust, then for purposes of creating the new second trust, the requirement of NRS 163.008 that the instrument be signed by the settlor shall be deemed to be satisfiedThe bysecond thetrust signaturemay ofbe thea trusteetrust ofcreated under the secondsame originaltrustinal trust.

The second trust may be a trust created under the same trust instrument as the original trust or under a different trust instrument.

- *AB314_R2* – 46 – 18.

(b)1396p(d)(4)(C) “Pooledthat trust”meets meansthe requirements for such a trust describedunder inany 42law U.S.C.or regulation of this State relating to the treatment of trusts for purposes of eligibility for Medicaid or other needs-based public assistance.

§ 1396p(d)(4)(C) that meets the requirements for such a trust under any law or regulation of this State relating to the treatment of trusts for purposes of eligibility for Medicaid or other needs-based public assistance.

The second - 79th Session (2017) – 48 – trust may be a trust created under the same trust instrument as the original trust or under a different trust instrument.

§ 1396p(d)(4)(A) that meets the requirements for such a trust under any law or regulation of this State relating to the treatment of trusts for purposes of eligibility for Medicaid or other needs-based public assistance.

163.610 [A fiduciary] Unless otherwise provided by the trust instrument, a trustee may [take such actions as are necessary to cause] include capital gains from the sale or exchange of [trust assets, as determined for federal income tax purposes, to be taxed for federal income tax purposes as part of a distribution of income, including, without limitation, income which has been increased by - *AB314_R2* – 47 – an adjustment from principal to income under NRS 164.795, a unitrust distribution or a distribution of principal] capital assets in distributable net income to the extent the gains are, in a reasonable and impartial exercise of discretion by the trustee, allocated to:

Income pursuant to the power of the trustee to adjust betweenbet2.en principalPrincipal and incometreated pursuantconsistently by the trustee in the books, records and tax returns of the trust as part of the distribution to NRSa 164.795;beneficiary;

2.

Principal and treated consistently by the trustee in the books, records and tax returns of the trust as part of the distribution to a beneficiary;

Upon petition of any person appointed as trustee of an express trust by any written instrument other than a will, or upon petition of a settlor or beneficiary of the trust, the district court of the county in which [the] any trustee resides or conducts business [,] at the time of the filing of the petition or in which the trust has been domiciled [,] as of the time of the filing of the petition shall [consider the application to] assume jurisdiction of the trust as a - 79th Session (2017) – 49 – proceeding in rem [.] unless another court has properly assumed continuing jurisdiction in rem in accordance with the laws of that jurisdiction and the district court determines that it is not appropriate for the district court to assume jurisdiction under the circumstances.cir2.mst[If] For the purposes of this section, a trust is domiciled in this State notwithstanding that the trustee neither resides nor conducts business in this State if:

2.

[If] For the purposes of this section, a trust is domiciled in this State notwithstanding that the trustee neither resides nor conducts business in this State if:

- *AB314_R2* – 48 – (e) One or more beneficiaries of the trust reside in this State;

3.a jurisdiction other than this State has jurisdiction over a trust and grants an order authorizing a transfer of jurisdiction over that trust to this State, the district court has the power to assume jurisdiction over the trust and to otherwise supervise the administration of that trust in accordance with the procedures set forth in this title.

Notwithstanding the provisions of this section, if a court of a jurisdiction other than this State has jurisdiction over a trust and grants an order authorizing a transfer of jurisdiction over that trust to this State, the district court has the power to assume jurisdiction over the trust and to otherwise supervise the administration of that trust in accordance with the procedures set forth in this title.

- 79th Session (2017) – 50 – (b) To the county in which the situs or domicile is declared in the trust instrument;

and (c) To the county in which the situs or domicile is declared by the trustee at the time of the filing of the petition in a certification of the trust which complies with subsection 2 of NRS 164.400 and subsection 2 of NRS 164.410 and which contains a declaration ofofd the trust’s situs or domicile as authorized in subsection 1 of NRS 164.410.

- *AB314_R2* – 49 – [3.] 6.

At any time, the trustee may petition the court for removalrem[4.l ofoFor the trustpurposes fromof continuingthis jurisdictionsection, ofa thetrust court.is domiciled:

[4.

For the purposes of this section, a trust is domiciled:

and (3) Finally, to the situs or domicile declared by the trustee in a certification of the trust which complies with subsection 2 of NRS 164.400 and subsection 2 of NRS 164.410 and which contains a - 79th Session (2017) – 51 – declaration of the trust’s situs or domicile as authorized in subsection 1 of NRS 164.410.

As used in this section, “written instrument” includes, without limitation, an electronic trust as defined in NRSNRSSec. 163.0015.

Sec.52.5.

52.

[If the district court, as defined in NRS 132.116, determines that there is a clear and sufficient nexus between a trust and this State,conducted thepursuant courtto mayNRS assume164.010 jurisdictionunless:during during a proceeding conducted(a) pursuantAnother tocourt NRShas 164.010properly unless:assumed jurisdiction in accordance with the laws of that jurisdiction;

- *AB314_R2* – 50 – (a) Another court has properly assumed jurisdiction in accordance with the laws of that jurisdiction;

- 79th Session (2017) – 52 – (b) The trust owns personal property, wherever situated, if the trustee or cotrustee is:

(3) A trust company licensed under chapter 669 of NRS;

NRS 165.030 is hereby amended to read as follows:fol165.030 [Within 75] An interested person to whom a trustee is required to account pursuant to this chapter may provide a written request to the trustee at any time 60 days or more after [a] the appointment of the trustee [receives possession of trust property, the trustee shall serve a copy of an inventory setting forth all the trust property which has come into the possession or knowledge of] which seeks a list of the assets of the trust estate known to the trustee.

165.030 [Within 75] An interested person to whom a trustee is required to account pursuant to this chapter may provide a written request to the trustee at any time 60 days or more after [a] the - *AB314_R2* – 51 – appointment of the trustee [receives possession of trust property, the trustee shall serve a copy of an inventory setting forth all the trust property which has come into the possession or knowledge of] which seeks a list of the assets of the trust estate known to the trustee.

- 79th Session (2017) – 53 – Sec.

(a) A person designated as the person with authority to order the burial or cremation of the human remains of the decedent in aader the legally valid document or in an affidavit executed in accordance with subsection 9;

(2) The length of time that he or she knew the decedent;

- *AB314_R2* – 52 – 3.

If a person with authority to order the burial or cremation of the human remains of a decedent pursuant to paragraphs (c) to (h), inclusive, of subsection 1 has been arrested for or charged with murder, as defined in NRS 200.010, or voluntary manslaughter, as defined in NRS 200.050, in connection with the death of the decedent, the authority of the person to order the disposition of the human remains of the decedent is automatically relinquished and - 79th Session (2017) – 54 – passes to the next person in order of priority pursuant to subsection 1.

If there is more than one person authorized to order the burial or cremation of the human remains of a decedent within a particular priority class pursuant to paragraphs (d) to (h), inclusive, of subsection 1, a funeral establishment or direct cremation facilityfacilitye, may require a majority of the members of the priority class to agree upon a disposition of the remains of the decedent.

A person 18 years of age or older wishing to authorize another person to order the burial or cremation of his or her human remains in the event of the person’s death may include such ananhuman authorization in a validly executed will or durable power of attorney or may execute an affidavit before a notary public in substantially the following form:

- *AB314_R2* – 53 – I, .............................., (person authorizing another person to order the burial or cremation of his or her human remains in the event of his or her death) do hereby designate ..............................

(person who is being authorized to order the burial or cremation of the human remains of a person in - 79th Session (2017) – 55 – the event of his or her death) to order the disposition of my human remains upon my death.

If the authorized person is not reasonably available or is unable to act as the authorized person, the right of the person to be the authorized person shall pass to the next person or category of personsper11.s iIt shall be presumed that an authorized person is not reasonably available to act as an authorized person in accordance with subsection 10 if the ordercrematory, cemetery, funeral establishment or direct cremation facility, after exercising due diligence, has been unable to contact the person, or if the person has been unwilling or unable to make final arrangements for the burial or cremation of prioritythe pursuanthuman remains of the decedent, within 30 days after the initial contact or attempt to subsectioncontact 1.by the crematory, cemetery, funeral establishment or direct cremation facility.

11.

It shall be presumed that an authorized person is not reasonably available to act as an authorized person in accordance with subsection 10 if the crematory, cemetery, funeral establishment or direct cremation facility, after exercising due diligence, has been unable to contact the person, or if the person has been unwilling or unable to make final arrangements for the burial or cremation of the human remains of the decedent, within 30 days after the initial contact or attempt to contact by the crematory, cemetery, funeral establishment or direct cremation facility.

If a person with a lower authorization priority than another person pursuant to subsection 1 has been authorized to order the burial or cremation of the human remains of a decedent and, subsequently, a person with a higher authorization priority makes an initial contact with the crematory, cemetery, funeral establishment or direct cremation facility and is available to perform the duties of an authorized person pursuant to this section before the final disposition of the decedent, the person with the higher authorization priority is the authorized person to order the burial or cremation of the human remains of the decedent.

H~~~~~ 17 - *AB314_R2*79th Session (2017)