AB 414 — Revises provisions governing the transfer of real property pursuant to a deed becoming effective upon the death of the grantor. (BDR 32-648)

(ReprintedAssembly withBill amendmentsNo. adopted on April 16, 2021) FIRST REPRINT A.B.

414414–Assemblyman ASSEMBLYO’Neill BCHAPTER.......... ILLN O.

414–A SSEMBLYMAN O’N EILL M ARCH 25, 2021 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions governing the transfer of real property pursuant to a deed becoming effective upon the death of the grantor.

(BDR 32-648) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

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

Existingproperty lawto authorizes a personbeneficiary toor createmultiple beneficiaries pursuant to a deed that transfersbecomesl his or her real effective upon the person’s death and refers to such a deed as a deed upon death.es (NRS 111.661, 111.669) Under existing law, upon the death of the last grantor of a deed upon death, a declaration of the value of the real property being transferred and a copy of the death certificate must be attached to a Death of Grantor Affidavit and recorded in the office of the county recorder in which the deed upon death was property any conveyance of real property by a deed upon death.

(NRS 375.090)eal111.661, Section111.669) 1Under ofexisting thislaw, bill provides that upon the recordingdeath of the Deathlast grantor of Grantora Affidavitdeed inupon death, a declaration of the officevalue of the countyreal recorderproperty uponbeing thetransferred deathand a copy of the grantor,death thecertificate conveyancemust ofbe realattached propertyto isa alsoDeath exemptof fromGrantor taxesAffidavit imposedand onrecorded in the transferoffice of realthe property.county recorder in which the deed upon death was recorded.

Sections(NRS 3111.699) andExisting 6law ofexempts thisfrom billtaxes provideon that this exemption applies to any Death of Grantor Affidavit recorded in the officetransfer of areal countyproperty recorderany onconveyance or aftUnder existing law, if the probate estate of thereal grantor of a deed upon death is insufficient to satisfy certain claims or allowances against the estate, the estate is authorized to enforce the liability for the claim or allowance against the property transferredby pursuanta to the deed upon death.

Existing(NRS law375.090) requiresSection a1 proceedingof to enforce this liabilitybill toprovides bethat commencedupon notthe laterrecording thanof 18the monthsDeath afterof theGrantor deathconveyance of -real *AB414_R1*property –is 2also –exempt from taxes imposed on the grantor.transfer ofe real property.

(NRS 111.689) Sections 23 and 46 of this bill removeprovide that this limitationexemption andapplies establish a procedure for claims to beany madeDeath againstof propertyGrantor transferredAffidavit pursuantrecorded toin a deed upon death if the grantoroffice of thea deedcounty uponrecorder death dies on or after Julythe 1,passage 2021.and approval of this bill.

Under sectionexisting 2,law, if the beneficiaryprobate orestate beneficiaries under a deed upon death are required to provide certain notice of the death of the grantor of thea deed upon death,death personis orinsufficient entityto whosatisfy hascertain aclaims claimor allowances against the grantorestate, orthe his or her probate estate is requiredauthorized to fileenforce the claimliability withfor the beneficiaryclaim or beneficiariesallowance withinagainst 90the daysproperty aftertransferred pursuant to the noticedeed isupon provided.death.

IfExisting alaw claimrequires isa notproceeding filedto withinenforce 90this daysliability afterto thebe noticecommenced isnot provided,later anythan claim18 againstmonths after the grantordeath orof hisestablish ora herprocedure probatefor estateclaims canto no longer be made against the property transferred pursuant to thea deed upon death,death andif the beneficiarygrantor orof beneficiaries under the deed upon death aredies authorizedon to sell or distributeafter theJuly property1, without2021. personal liability for any claim which was not timely providing the written notice to the Department of Health and Human Services.

IfUnder section 2, the beneficiary or beneficiaries under a deed upon death reject,are inrequired wholeto orprovide incertain part,notice anyof claimthe thatdeath isof timelythe filed,grantor of the beneficiarydeed orupon beneficiariesdeath, areincluding requiredto, toamong notifyothers, the claimantDepartment andof theHealth claimantand isHuman authorizedServices, toand bring a suitperson inor theentity courtwho withhas jurisdictiona claim against the beneficiarygrantor or beneficiarieshis butor suchher suitprobate mustestate beis broughtrequired withinto 30file daysthe afterclaim with the beneficiary or beneficiaries providedwithin notice90 ofdays after the rejectionnotice ofis theprovided. claim.

If a claim is not filed within 90 days after the notice is provided, any claim against the grantor or his or her probate estate can no longer be beneficiary or beneficiaries under the deed upon death are authorized to sell or distribute the property without personal liability for any claim which was not timely filed if the beneficiary or beneficiaries have received a waiver of claim after providing the written notice to the Department of Health and Human Services.

If the beneficiary or beneficiaries under a deed upon death reject, in whole or in part, any claim that is timely filed, the beneficiary or beneficiaries are required to notify the claimant and the claimant is authorized to bring a suit in the court with jurisdiction against the beneficiary or beneficiaries but such suit must be brought within 30 days after the beneficiary or beneficiaries provided notice of the rejection - 81st Session (2021) – 2 – of the claim.

and (3) provides that a person dealing with a beneficiary of a deed upon death has the same rights and protections as the person wouldorder havefor ifdistribution of the beneficiarygrantor’s hadestate beenthat namedhad asbecome afinal distributeeif of the propertypersonn acted in angood orderfaith and for distributionvaluable ofconsideration theand grantor’sa estateDeath thatof hadGrantor becomeAffidavit final if the person was recorded by the county recorder.

considerationEXPLANATION and– aMatter Deathin ofbolded Grantoritalics Affidavitis THEnew; PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sectionmatter 1.between brackets [omitted material] is material to be omitted.

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

- *AB414_R1* – 3 – 4.

A transfer, assignment or other conveyance of real property to a corporation or other business organization if the person conveying- the81st propertySession owns(2021) 100– percent3 of– the corporation or organization to which the conveyance is made.made.e corporation or 10.

10.

12.subsection, “educational foundation” has the meaning ascribed to it in subsection 3 of NRS 388.750.

A transfer to an educational foundation.

As used in this subsection, “educational foundation” has the meaning ascribed to it in subsection 3 of NRS 388.750.

To the extent the grantor’s probate estate is insufficient to satisfy an allowed claim against the estate or a statutory allowance to a surviving spouse or child, the estate may - *AB414_R1* – 4 – enforce the liability against property transferred pursuant to a deed upon death.

If more than one property is transferred pursuant to one or more deeds upon death, the liability for any claim must be apportioned among the properties in proportion to their net values at the grantor’s death.

(b- The81st DepartmentSession (2021) – 4 – (c) Known or readily ascertainable creditors of Healththe andgrantor Humanor Services;the probate estate of the grantor.

and (c) Known or readily ascertainable creditors of the grantor or the probate estate of the grantor.

After the - *AB414_R1* – 5 – expiration of the time to file a claim as provided in this section, the beneficiary or beneficiaries may sell or distribute the property transferred pursuant to the deed upon death, without personalpersonalrty liability for any claim which has not been timely filed with the beneficiary or beneficiaries if, in accordance with subsection 6, the beneficiary or beneficiaries have received a waiver of claim after providing written notice to the Department of Health and Human Services as required by subsection 3.

If notice to the Department of Health and Human Services is not given, the property transferred by the deed upon death remains subject to the right of the Department to recover public assistance- received81st Session (2021) – 5 – an action to impose a lien on the real property transferred by the grantor.deed upon death pursuant to NRS 422.29306, take any other action allowable by law to secure the future recovery of benefits or make a written demand for payment, as applicable.

The Department may initiate an action to impose a lien on the real property transferred by the deed upon death pursuant to NRS 422.29306, take any other action allowable by law to secure the future recovery of benefits or make a written demand for payment, as applicable.

For claims not originating with the Department of Health and Human Services, if a claim is rejected by the beneficiary or beneficiaries under the deed upon death, in whole or in part, the beneficiary or beneficiaries must, within 10 days after the rejection, notify the claimant of the rejection by written notice sent by registered or certified mail to the mailing address of the claimant.the beneficiary or beneficiaries within 30 days after the notice is sent, whether the claim is due or not, or the claim is barred forever and the beneficiary or beneficiaries under the deed upon death may distribute the property transferred by the deed upon death without personal liability to any creditor whose claim is barred forever.

The claimant must bring suit in the proper court against the beneficiary or beneficiaries within 30 days after the notice is sent, whether the claim is due or not, or the claim is barred forever and the beneficiary or beneficiaries under the deed upon death may distribute the property transferred by the deed upon death without personal liability to any creditor whose claim is barred forever.

A person dealing with a beneficiary of a deed upon death has the same rights and protections as the person would have if the beneficiary had been named as a distributee of the property in an order for distribution of the grantor’s estate that had become finalfin(a) ifThe bothperson ofacted thein followinggood conditionsfaith areand satisfied:for valuabled: