AB 254 — Revises provisions governing guardianships. (BDR 13-595)

(ReprintedAssembly withBill amendmentsNo. adopted on May 19, 2017) FIRST REPRINT A.B.

254254–Assemblymen AYeager SSEMBLYand BSprinkle ILLNCHAPTER.......... O.

254–A SSEMBLYMEN Y EAGER AND SPRINKLE M ARCH 3, 2017 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions governing guardianships.

(BDR 13-595) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

supervisionExisting oflaw theauthorizes trusta tocourt anotherhaving court,jurisdiction uponof petition by a trusteetrust orto beneficiary,transfer when the convenience of certain persons makes a transfer desirable.

(NRS 164.130)164.130)ary, Section 3 of this bill additionally authorizes such a court to transfer supervision of the trust to a district court having jurisdiction of the guardianship of a ward who is currently a beneficiary of the trust and is receiving or is entitled to receive distributions.

Existing law requires a general or special guardian of the estate to make and file in a guardianship proceeding, not later than 60 days after the date of his or her appointment, a verified inventory of all of the property of a ward which comes to the possession or knowledge of the guardian.

Section 1 of this bill provides that if such an inventory includes the Sectionexistence 1of authorizessuch thea guardiantrust, orthe attorneytrustee ofmust thebe wardserved towith demand a copy of they.the inventory.

Section 1 authorizes the guardian or attorney of the ward to demand a copy of the trust and an accounting of the assets of the trust from the trustee.

If the trustee fails - *AB254_R1* – 2 – to comply with the demand within a certain period, section 1 authorizes the guardian or attorney of the ward to petition the court to assume jurisdiction of the trust.

(1) no notobjection find good cause as to whythe itcourt shouldassuming not assume jurisdiction of the trust.trust is filed;

Sectiondoesor 1(2) further requires the trusteecourt todoes filenot afind copygood ofcause theas trustto andwhy anit accountingshould of the assets of the trust with the court not laterassume than 30 days after the court assumes jurisdiction of the trusttrust. or supervision of the trust is transferred pursuant to section 3.

authorizingSection further requires the guardiantrustee to submitfile a revocablecopy of the trust toand an accounting of the jurisdictionassets of the trust with the court innot certainlater circumstances.than 30 days after the court assumes jurisdiction of the trust or supervision of the trust is transferred pursuant to section 3.

(NRSExisting 159.113)law Section 2.5 of this bill additionally requires a guardian of the estate to petition the court for an order authorizing the guardian to submit an irrevocable trust to the jurisdiction of the court in suchcertain circumstances.

(NRS 159.113) Section 2.5 of this bill additionallyhe court requires a guardian of the estate to petition the court for an order authorizing the guardian to submit an irrevocable trust to the jurisdiction of the court in such circumstances.

- 79th Session (2017) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Except as otherwise provided in subsection 3 of NRS 164.045, if no objection is filed or if the court does not find good cause as to why it should not assume jurisdictiontrust.iction of the trust, the court may assume jurisdiction of the trust.5.

- *AB254_R1* – 3 – 5.

Not later than 60 days after the date of the appointment of a general or special guardian of the estate or, if necessary, such further time as the court may allow, the guardian - 79th Session (2017) – 3 – shall make and file in the guardianship proceeding a verified inventory of all of the property of the ward which comes to the possession or knowledge of the guardian [.] , including, without limitation, the existence of any trust of which the ward is currently a beneficiaryb2.efiA whotemporary isguardian receivingof orthe isestate entitledwho tois receivenot distributions.appointed asions.

2.the general or special guardian shall file an inventory with the court by not later than the date on which the temporary guardian files a final accounting as required pursuant to NRS 159.177.

A temporary guardian of the estate who is not appointed as the general or special guardian shall file an inventory with the court by not later than the date on which the temporary guardian files a final accounting as required pursuant to NRS 159.177.

7.within the time required pursuant to subsection 1, the court may, for good cause shown and upon such notice as the court deems appropriate:

If(a) Revoke the guardianletters neglectsof orguardianship refusesand to file the inventoryguardian withinshall thebe timeliable requiredon pursuant to subsection 1, the courtbond may, for goodany causeloss shownor andinjury uponto suchthe noticeestate ascaused by the courtneglect deemsof appropriate:the guardian;

- *AB254_R1* – 4 – (a) Revoke the letters of guardianship and the guardian shall be liable on the bond for any loss or injury to the estate caused by the neglect of the guardian;

- 79th Session (2017) – 4 – (c) Borrow money for the ward pursuant to NRS 159.121.

(e)the Makeward’s giftsrelatives frompursuant theto ward’sNRS estate159.125.ake expenditures for (f) Sell, lease or makeplace expendituresin fortrust theany ward’sproperty relativesof the ward pursuant to NRS 159.125.159.127.

(f) Sell, lease or place in trust any property of the ward pursuant to NRS 159.127.

2.guardian has been otherwise ordered by the court to petition the court for permission to take specified actions or make specified decisions in addition to those described in subsection 1, the guardian may petition the court for an order authorizing the guardian to:

Before(a) takingObtain anyadvice, ofinstructions theand followingapproval actions,of unlessany theother guardianproposed hasact beenof otherwise ordered by the courtguardian torelating petition the court for permission to take specified actions or make specified decisions in addition to those described in subsection 1, the guardianward’s mayproperty. petition the court for an order authorizing the guardian to:

- *AB254_R1* – 5 – (a) Obtain advice, instructions and approval of any other proposed act of the guardian relating to the ward’s property.

- 79th Session (2017) – 5 – (d) The terms and conditions of any proposed sale, lease, partition, trust, exchange or investment, and a specific description of any property involved.

A petition filed pursuant to paragraphs (b) and (d) of subsection 1 may be consolidated in and filed with the petition for the appointment of the guardian, and if the guardian is appointed, the court may enter additional orders authorizing the guardian to continuecomplete thecontracts business of the ward,ward.rd, enter contracts for the ward or completeSec. contracts of the ward.

Sec.