Assembly Bill No. 318–Assemblywoman Marzola CHAPTER

- 81st Session (2021)

Assembly Bill No. 318–Assemblywoman Marzola

CHAPTER..........

AN ACT relating to estates; revising provisions relating to certain

declaratory relief; exempting certain fiduciaries from the

requirement to provide a residential disclosure form in certain

circumstances; revising provisions relating to electronic

wills; establishing and revising various provisions governing

the administration of estates; revising provisions concerning

the distribution of small estates; revising provisions relating

to the compensation of attorneys for personal representatives;

revising the definition of the term “independent attorney”;

revising provisions relating to the nomination of a guardian;

authorizing a trustee to reimburse a settlor for the payment of

tax on trust income or principal; revising various provisions

concerning trusts and the administration of trusts; requiring

that public administrators or similar persons be given certain

information relating to a decedent and access to the safe

deposit box of a decedent in certain circumstances;

authorizing certain entities to charge a reasonable fee for

providing certain information to public administrators or

similar persons; and providing other matters properly relating

thereto.

Legislative Counsel’s Digest:

Existing law authorizes certain persons to obtain declaratory relief under a

deed, written contract or testamentary instrument or with respect to the

administration of a trust or certain estates for certain purposes. (NRS 30.040,

30.060) Sections 1 and 2 of this bill authorize a principal or person granted

authority to act for a principal under a power of attorney to obtain declaratory relief

under the power of attorney.

Existing law generally requires a seller of residential property to provide a

disclosure form to the purchaser of the property, but provides that such a

requirement does not apply in certain circumstances. (NRS 113.130) Section 3 of

this bill exempts from such a requirement certain fiduciaries who take temporary

possession or control of or title to residential property solely to facilitate the sale of

the property on behalf of a person who is deceased or incapacitated.

Sections 4-14 of this bill revise various provisions governing electronic wills.

Section 9 of this bill revises provisions governing the revocation of an electronic

will. Section 11 of this bill revises provisions relating to a qualified custodian of an

electronic will ceasing to serve in that capacity and the appointment of a successor

qualified custodian. Section 13 of this bill revises provisions concerning the

destruction of the electronic record of an electronic will. Section 14 of this bill

establishes provisions relating to the conversion of: (1) an electronic will into a

certified paper original of the electronic will; and (2) an electronic revocation of a

will into a certification of revocation.

Existing law authorizes the administration of an estate to be granted to one or

more qualified persons not otherwise entitled to serve as an administrator if a

qualified person who is entitled to serve as an administrator files a written request

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with the court. (NRS 139.050) Section 15 of this bill requires the requester to

provide his or her current address and telephone number in the written request and

provides that failure to provide such information voids the written request. Existing

law requires a petition for letters of administration to include certain information.

(NRS 139.090) Section 16 of this bill additionally requires such a petition to

include the names and addresses of the proposed appointed administrators and any

associated coadministrator. Existing law also requires notice of the hearing on the

petition to be given to the heirs of the decedent and the Director of the Department

of Health and Human Services. (NRS 139.100) Section 16.5 of this bill additionally

provides that if the petitioner is not the surviving spouse or certain kindred or

nominated by the surviving spouse or such kindred, notice must be given to the

public administrator of the county or a similar person.

Section 18 of this bill establishes the circumstances in which a person is

required to accept or not accept certified letters of administration or letters

testamentary and provides that a person who unlawfully refuses to accept such

certified letters is subject to a court order requiring acceptance of the certified

letters and liability for reasonable attorney’s fees and costs incurred in an action or

proceeding confirming the validity or mandating the acceptance of the certified

letters. Section 18 authorizes a person, after accepting certified letters of

administration or letters testamentary, to subsequently request newly certified

letters after a certain period for the purpose of validating the continued authority of

the personal representative.

Section 19 of this bill authorizes a person holding property of a decedent to

request the presentation of only certain items as a prerequisite to transferring such

property in accordance with a court order providing to whom such property is to be

transferred. Section 19 requires the person to accept and comply with such a court

order not later than 10 days after the presentation of all requested items unless

certain circumstances exist or, if the person does not request the presentation of any

items, not later than 10 days after being presented with such a court order. Section

19 provides that a person who unlawfully refuses to accept and comply with such a

court order is subject to a court order requiring acceptance of the order, liability for

reasonable attorney’s fees and costs incurred in an action or proceeding confirming

the validity of the court order and any damages resulting from the delay.

Existing law establishes provisions concerning the effect of the absence or

disability of a personal representative on acts taken by one or more other personal

representatives when more than one personal representative has been appointed.

(NRS 143.010) Section 20 of this bill provides that if there are two personal

representatives, one of whom has a conflict of interest, the acts of the other

personal representative alone are valid, and if there are more than two personal

representatives, the acts of a majority of the personal representatives are sufficient.

Existing law establishes provisions concerning the continuation of the operation

of a decedent’s business by a personal representative. (NRS 143.050, 143.520)

Sections 21 and 26 of this bill make various changes to such provisions.

Existing law authorizes a court to require a person to post a bond when

obtaining an ex parte order that restrains a personal representative from performing

certain actions, exercising any powers or discharging any duties of the office, or

any other order to secure proper performance of the duties of the office. (NRS

143.165) Section 22 of this bill provides that a public administrator or similar

person must not be required to post a bond for obtaining any such order.

Existing law requires the notice of a hearing on a petition filed by a personal

representative for full or limited authority to administer an estate to be given to

certain persons in certain circumstances. (NRS 143.345) Existing law generally

requires the court to grant the authority requested unless an interested person timely

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objects and shows good cause why the authority should not be granted. (NRS

143.350) Section 24 of this bill requires notice to be given to the public

administrator of the county or a similar person in certain circumstances, and section

25 of this bill provides that a person who receives notice is an interested person for

purposes of having the ability to object to the granting of authority. Section 25 also

authorizes, instead of requires, the court to grant the requested authority.

Existing law generally authorizes a personal representative who has been

granted full authority to administer an estate to sell property of the estate for such a

price and upon such terms and conditions as he or she determines. (NRS 143.380)

Section 25.5 of this bill provides that if the personal representative determines that

the sale of real property of the estate will be less than 90 percent of the appraised

value: (1) all interested persons must consent in writing to the sale; and (2) the sale

must be confirmed by the court.

Existing law authorizes a decedent’s estate to be set aside without

administration if the value of the estate does not exceed $100,000. (NRS 146.070)

Section 27 of this bill additionally authorizes all or part of a decedent’s estate to be

set aside without administration if the decedent’s will directs that such portion be

distributed to the trustee of a nontestamentary trust established by the decedent and

in existence at the decedent’s death, and provides that the portion of the estate that

is set aside is generally subject to creditors of the estate.

Existing law entitles an attorney for a personal representative to reasonable

compensation for his or her services, paid from a decedent’s estate, and sets forth

the calculation for determining the allowable compensation in certain

circumstances. (NRS 150.060) Section 28 of this bill requires a court to allow the

compensation of the attorney in the amount calculated.

Existing law provides that the transfer of property for less than fair market

value is generally presumed to be void if the transfer is made to certain transferees,

including the person who drafted the transfer instrument, and establishes the

circumstances in which such a presumption does not apply, including if a transfer

instrument is reviewed by an independent attorney who takes certain actions. (NRS

155.097, 155.0975) Section 29 of this bill revises the definition of the term

“independent attorney” to include the drafting attorney representing the transferor

in preparation of the transfer instrument if the drafting attorney is not otherwise

disqualified from being an independent attorney.

Existing law authorizes any person requesting to nominate another person to be

appointed as his or her guardian to complete a form requesting to nominate a

guardian. (NRS 159.0753) Existing law also authorizes the nomination of

a guardian of the estate in a power of attorney and a guardian of the person in a

power of attorney for health care in certain circumstances. (NRS 162A.250,

162A.800) Section 30 of this bill revises provisions concerning a form requesting

to nominate a guardian to reference the nomination of a guardian in any such power

of attorney.

Section 31 of this bill allows a governing trust instrument to authorize a trustee

to reimburse a settlor for all or a portion of tax on trust income or principal that is

to be paid by the settlor and authorizes the trustee to pay the settlor directly or pay

the appropriate taxing authority on behalf of the settlor. Section 31 also provides

that the power of a trustee to make such a payment or the decision of a trustee to

exercise such power in favor of the settlor must not cause the settlor to be treated as

a beneficiary for the purposes of Nevada law.

Existing law authorizes a trust to be created by a declaration by the owner of

property that he or she or another person holds the property as trustee. (NRS

163.002) Section 32 of this bill provides that a declaration by the owner of property

that he or she or another person holds all the property of the declarant in trust is

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sufficient to create a trust over all the property of the declarant that is reliably

identified as belonging to the declarant at the time of his or her death.

Existing law provides that: (1) a trust is irrevocable unless a right to amend or

revoke the trust is expressly reserved by the settlor or granted to one or more other

persons under the terms of the trust instrument; and (2) the power of appointment

or power to add or remove beneficiaries, appoint, remove or replace the trustee or

make administrative amendments does not make a trust revocable. (NRS 163.004)

Section 33 of this bill instead provides that a trust is irrevocable unless a right to

revoke the trust is expressly reserved by the settlor under the terms of the trust

instrument, and that any authority, power or right granted to any person other than

the settlor under the terms of the trust instrument or by law, including the power or

right to amend the trust, does not render or make a trust revocable. Section 47 of

this bill provides that such provisions apply to any trust created or amended before,

on or after October 1, 2021.

Section 34 of this bill establishes the circumstances in which the custodian of

an electronic trust may convert the electronic trust into a certified paper original of

the electronic trust and the method by which an electronic trust may be converted

into a certified paper original. Section 34 also authorizes the custodian to destroy

the electronic record of the electronic trust after converting the electronic trust into

a certified paper original if the custodian first takes certain actions.

Existing law generally authorizes a trustee to combine two or more trusts into a

single trust or divide a trust into two or more separate trusts in certain

circumstances after giving notice to certain persons. (NRS 163.025) Section 35 of

this bill provides that if the terms of the trust instrument do not expressly authorize

such a combination or division of trusts, the combination or division is required to

be made by court order or after giving such notice.

Existing law provides that a trust instrument may grant certain powers to an

investment trust adviser. (NRS 163.5557) Section 37 of this bill provides that the

power to value non-publicly traded investments held in trust that are subject to the

investment management authority of the investment trust adviser may also be

granted to an investment trust adviser.

Existing law prohibits a creditor of a settlor from seeking to satisfy a claim

against the settlor from the assets of a trust in certain circumstances unless the

creditor can prove that trust property transferred by the settlor was transferred

fraudulently or was otherwise wrongful as to the creditor. (NRS 163.5559) Section

38 of this bill establishes additional circumstances that generally prohibit a creditor

from seeking to satisfy a claim against the settlor from the assets of the trust and

provides that such a prohibition does not preclude a creditor from seeking to satisfy

a claim against the settlor of a spendthrift trust if the creditor can prove by clear and

convincing evidence that trust property transferred by the settlor was fraudulent as

to the creditor or violates a legal obligation owed to the creditor under a contract or

valid court order.

Section 39 of this bill provides that a trustee may act at the direction or with the

consent of another party pursuant to the terms of a trust instrument to appoint

property of one trust to another trust and revises other provisions relating to the

appointment of such property. Section 39 also revises the definition of the term

“second trust” for the purposes of the appointment of such property.

Existing law authorizes a trustee to provide notice to certain persons after a

revocable trust becomes irrevocable and generally prohibits any person who is

provided notice from bringing an action to contest the validity of the trust more

than 120 days after notice is served. (NRS 164.021) Section 40 of this bill provides

that such a prohibition exists regardless of whether a petition for the assumption of

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jurisdiction of a trust by a court is served upon the person after such notice is

provided.

Existing law authorizes a trustee of a nontestamentary trust to provide notice to

creditors after the death of the settlor, establishes forms for a claim against the

settlor or the trust and requires a creditor to file a claim with the trustee within a

certain period or the claim is barred. (NRS 164.025) Section 41 of this bill

establishes a form for a claim against the settlor and the trust and provides that a

claim filed with the trustee is presumed to be timely filed if it meets certain

requirements. Section 41 also establishes provisions concerning the discovery of

the existence of an additional creditor after the initial notice to creditors is

provided.

Existing law provides that if a trust has an unrepresented minor or incapacitated

beneficiary, the custodial parent or guardian of the estate of the minor or

incapacitated beneficiary is authorized to provide representation in any judicial

proceeding or nonjudicial matter pertaining to the trust. (NRS 164.038) Section 42

of this bill instead provides that any custodial parent or the guardian of the estate

can provide such representation.

Section 44 of this bill requires a lender, trustee or assignee of an encumbrance

against real property to provide to the Director of the Department of Health and

Human Services or a public administrator or similar person a statement containing

the identifying number and account balance of any encumbrance against real

property on which the name of a decedent appears and authorizes a reasonable fee

to be charged for providing such a statement to a public administrator or similar

person. Section 45 of this bill requires a financial institution to provide a public

administrator or similar person with access to a safe deposit box of a decedent for

the purpose of inspecting and removing any will or instructions for disposition of

the remains of the decedent. Section 46 of this bill requires county health officers

to include the residential addresses of all deceased persons in a written list filed

with a public administrator or similar person.

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 30.040 is hereby amended to read as follows:

30.040 1. Any person interested under a deed, written

contract or other writings constituting a contract, or whose rights,

status or other legal relations are affected by a statute, municipal

ordinance, contract or franchise, may have determined any question

of construction or validity arising under the instrument, statute,

ordinance, contract or franchise and obtain a declaration of rights,

status or other legal relations thereunder.

2. A maker or legal representative of a maker of a will, trust or

other writings constituting a testamentary instrument may have

determined any question of construction or validity arising under the

instrument and obtain a declaration of rights, status or other legal

relations thereunder. Any action for declaratory relief under this

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subsection may only be made in a proceeding commenced pursuant

to the provisions of title 12 or 13 of NRS, as appropriate.

3. A principal or a person granted authority to act for a

principal under power of attorney, whether denominated an agent,

attorney-in-fact or otherwise, may have determined any question

of construction or validity arising under the instrument and obtain

a declaration of rights, status or other legal relations thereunder.

Any action for declaratory relief under this subsection may only be

made in a proceeding commenced pursuant to the provisions of

title 12 or 13 of NRS, as appropriate.

Sec. 2. NRS 30.060 is hereby amended to read as follows:

30.060 1. Any person interested as or through an executor,

administrator, trustee, guardian , [or] other fiduciary, including,

without limitation, a person granted authority to act for a

principal under a power of attorney, whether denominated an

agent, attorney-in-fact or otherwise, creditor, devisee, legatee, heir,

next of kin or cestui que trust, in the administration of a trust [,] or

[of] the estate of a decedent, an infant, lunatic or insolvent, or in the

actions taken pursuant to a power of attorney, may have a

declaration of rights or legal relations in respect thereto:

(a) To ascertain any class of creditors, devisees, legatees, heirs,

next of kin or others;

(b) To direct [the executors, administrators or trustees] an

executor, administrator, trustee or person granted authority to act

for a principal under a power of attorney, whether denominated

an agent, attorney-in-fact or otherwise, to do or abstain from doing

any particular act in [their] his or her fiduciary capacity; or

(c) To determine any question arising in the administration of

the estate or trust, including questions of construction of wills, trusts

and other writings.

2. Any action for declaratory relief under this section may only

be made in a proceeding commenced pursuant to the provisions of

title 12 or 13 of NRS, as appropriate.

Sec. 3. NRS 113.130 is hereby amended to read as follows:

113.130 1. Except as otherwise provided in subsection 2:

(a) At least 10 days before residential property is conveyed to a

purchaser:

(1) The seller shall complete a disclosure form regarding the

residential property; and

(2) The seller or the seller’s agent shall serve the purchaser

or the purchaser’s agent with the completed disclosure form.

(b) If, after service of the completed disclosure form but before

conveyance of the property to the purchaser, a seller or the seller’s

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agent discovers a new defect in the residential property that was not

identified on the completed disclosure form or discovers that a

defect identified on the completed disclosure form has become

worse than was indicated on the form, the seller or the seller’s agent

shall inform the purchaser or the purchaser’s agent of that fact, in

writing, as soon as practicable after the discovery of that fact but in

no event later than the conveyance of the property to the purchaser.

If the seller does not agree to repair or replace the defect, the

purchaser may:

(1) Rescind the agreement to purchase the property; or

(2) Close escrow and accept the property with the defect as

revealed by the seller or the seller’s agent without further recourse.

2. Subsection 1 does not apply to a sale or intended sale of

residential property:

(a) By foreclosure pursuant to chapter 107 of NRS.

(b) Between any co-owners of the property, spouses or persons

related within the third degree of consanguinity.

(c) Which is the first sale of a residence that was constructed by

a licensed contractor.

(d) By a person who takes temporary possession or control of or

title to the property solely to facilitate the sale of the property on

behalf of a person who relocates to another county, state or country

before title to the property is transferred to a purchaser.

(e) By a fiduciary under title 12 or 13 of NRS, including,

without limitation, a personal representative, guardian, trustee or

person acting under a power of attorney, who takes temporary

possession or control of or title to the property solely to facilitate

the sale of the property on behalf of a person who is deceased or

incapacitated.

3. A purchaser of residential property may not waive any of the

requirements of subsection 1. A seller of residential property may

not require a purchaser to waive any of the requirements of

subsection 1 as a condition of sale or for any other purpose.

4. If a sale or intended sale of residential property is exempted

from the requirements of subsection 1 pursuant to paragraph (a) of

subsection 2, the trustee and the beneficiary of the deed of trust

shall, not later than at the time of the conveyance of the property to

the purchaser of the residential property, or upon the request of the

purchaser of the residential property, provide:

(a) Written notice to the purchaser of any defects in the property

of which the trustee or beneficiary, respectively, is aware; and

(b) If any defects are repaired or replaced or attempted to be

repaired or replaced, the contact information of any asset

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management company who provided asset management services for

the property. The asset management company shall provide a

service report to the purchaser upon request.

5. As used in this section:

(a) “Seller” includes, without limitation, a client as defined in

NRS 645H.060.

(b) “Service report” has the meaning ascribed to it in

NRS 645H.150.

Sec. 4. Chapter 132 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. For the purposes of this title, being “in the presence” of a

testator, settlor, principal or witness includes, without limitation,

being in the same location at the same time or appearing in the

same location at the same time by means of audio-video

communication.

2. As used in this section, “audio-video communication” has

the meaning ascribed to it in paragraph (b) of subsection 3 of

NRS 133.088.

Sec. 5. NRS 132.117 is hereby amended to read as follows:

132.117 “Electronic record” [means a record created,

generated, sent, communicated, received or stored by electronic

means.] has the meaning ascribed to it in NRS 719.090.

Sec. 6. NRS 132.118 is hereby amended to read as follows:

132.118 “Electronic signature” [means an electronic sound,

symbol or process attached to or logically associated with a record

and executed or adopted by a person with the intent to sign the

record.] has the meaning ascribed to it in NRS 719.100.

Sec. 7. NRS 132.119 is hereby amended to read as follows:

132.119 “Electronic will” means [an instrument, including,

without limitation, a codicil, that is executed by a person in

accordance with the requirements of NRS 133.085 and which

disposes of the property of the person upon or after his or her death.]

a will that is created and maintained in an electronic record.

Sec. 8. NRS 133.086 is hereby amended to read as follows:

133.086 1. An electronic will is self-proving if:

(a) The declarations or affidavits of the attesting witnesses are

incorporated as part of, attached to or logically associated with the

electronic will, as described in NRS 133.050;

(b) The electronic will designates a qualified custodian to

maintain custody of the electronic record of the electronic will; and

(c) Before [being offered for probate or] being reduced to a

certified paper original , [that is offered for probate,] the electronic

will was at all times under the custody of a qualified custodian.

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2. A declaration or affidavit of an attesting witness made

pursuant to NRS 133.050 and an affidavit of a person made pursuant

to NRS 133.340 must be accepted by a court as if made before the

court.

Sec. 9. NRS 133.120 is hereby amended to read as follows:

133.120 1. A written will other than an electronic will may

[only] be revoked by:

(a) Burning, tearing, cancelling or obliterating the will, with the

intention of revoking it, by the testator, or by some person in the

presence and at the direction of the testator;

(b) Another will or codicil in writing, executed as prescribed in

this chapter; [or]

(c) An electronic will, executed as prescribed in this chapter [.] ;

or

(d) An electronic revocation that meets the electronic

requirements set forth in paragraphs (a) and (b) of subsection 1 of

NRS 133.085.

2. An electronic will may [only] be revoked by:

(a) [Another] A subsequent will, codicil, electronic will or other

writing, executed as prescribed in this chapter [; or] , that revokes

all or part of the electronic will expressly or by inconsistency;

(b) [Cancelling, rendering unreadable] If the electronic will has

been converted to a certified paper original, burning, tearing,

cancelling or obliterating the [will] certified paper original, with

the intention of revoking [it,] the electronic will, by [:

(1) The] the testator , or [a] by some person in the presence

and at the direction of the testator; or

[(2) If the will is in the custody of a qualified custodian, the

qualified custodian at the direction of a testator in an electronic

will.]

(c) An electronic revocation that meets the electronic

requirements set forth in paragraphs (a) and (b) of subsection 1 of

NRS 133.085.

3. This section does not prevent the revocation implied by law

from subsequent changes in the condition or circumstances of the

testator.

Sec. 10. NRS 133.300 is hereby amended to read as follows:

133.300 1. A person must execute a written statement

affirmatively agreeing to serve as the qualified custodian of an

electronic will before he or she may serve in such a capacity.

2. [Except as otherwise provided in paragraph (a) of subsection

1 of NRS 133.310, a] A qualified custodian may not cease serving in

such a capacity until [a successor qualified custodian executes the

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written statement required by subsection 1.] the requirements of

NRS 133.310 have been met.

Sec. 11. NRS 133.310 is hereby amended to read as follows:

133.310 1. A qualified custodian may cease serving in such a

capacity by:

(a) [If not designating a successor qualified custodian, providing

to the testator:

(1) Thirty days’ written notice that the qualified custodian

has decided to cease serving in such a capacity; and

(2)] The conversion of an electronic will into a certified

paper original [of, and all records concerning, the electronic will.] in

accordance with NRS 133.340;

(b) [If designating] The conversion of an electronic revocation

into a certification of revocation of the electronic will in

accordance with subsection 7 of NRS 133.340; or

(c) The appointment of a successor qualified custodian [:

(1) Providing] in accordance with subsection 2.

2. A successor qualified custodian may be appointed as

follows:

(a) The successor qualified custodian is designated by:

(1) The testator; or

(2) Except as otherwise provided in subsection 4, the

qualified custodian, by providing the testator 30 days’ written

notice that the qualified custodian has decided to cease serving in

such a capacity [to:

(I) The testator; and

(II) The designated] and designating the successor

qualified custodian [; and

(2) Providing] ;

(b) The qualified custodian provides to the successor qualified

custodian the electronic record of the electronic will and an affidavit

which states:

[(I)] (1) That the qualified custodian ceasing to act in

such a capacity is eligible to act as a qualified custodian in this State

and is the qualified custodian designated by the testator in the

electronic will or was designated to act in such a capacity by another

qualified custodian pursuant to this [paragraph;

(II)] subsection;

(2) That an electronic record was created at the time the

testator executed the electronic will;

[(III)] (3) That the electronic record has been in the

custody of one or more qualified custodians since the execution of

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the electronic will and has not been altered since the time it was

created; and

[(IV)] (4) The identity of all qualified custodians who

have had custody of the electronic record since the execution of the

electronic will [.

2. For purposes of making the affidavit pursuant to

subparagraph (2) of paragraph (b) of subsection 1, a qualified

custodian is entitled to rely conclusively on any affidavits provided

by a predecessor qualified custodian if all such affidavits are

provided to the] ; and

(c) The successor qualified custodian [.] executes a written

statement pursuant to subsection 1 of NRS 133.300.

3. [Subject to the provisions of NRS 133.300, if the testator

designates a successor] If the qualified custodian [in a writing

executed with the same formalities required for the execution] has

custody of the testator’s electronic revocation of [an] the electronic

will, [a] the qualified custodian shall [cease serving in such a

capacity and] provide to the [designated] successor qualified

custodian [:] the electronic record of the electronic revocation and

an affidavit stating:

(a) [The] That an electronic record [; and] was created at the

time the testator revoked the will;

(b) [The affidavit described in subparagraph (2) of paragraph (b)

of subsection 1.] That the electronic record has been in the custody

of one or more qualified custodians since the execution of the

electronic revocation and has not been altered since the time it

was created; and

(c) The identity of all qualified custodians who have had

custody of the electronic record since the execution of the

electronic revocation.

4. [If] Before the expiration of the 30 days after the qualified

custodian gives notice designating a successor qualified custodian

pursuant to subparagraph (2) of paragraph (a) of subsection 2, if

the testator designates a different successor qualified custodian , [is

an entity, an affidavit of a duly authorized officer or agent of such

entity constitutes the affidavit of] the successor qualified custodian

[.] whom the testator designates must be the appointed successor

qualified custodian.

Sec. 12. NRS 133.320 is hereby amended to read as follows:

133.320 A qualified custodian of an electronic will:

1. Must not be an heir of the testator or a beneficiary or devisee

under the electronic will.

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2. Shall consistently employ, and store electronic records of

electronic wills in, a system that protects electronic records from

destruction, alteration or unauthorized access and detects any

change to an electronic record.

3. Shall store in the electronic record of an electronic will each

of the following:

(a) A photograph or other visual record of the testator and the

attesting witnesses that was taken contemporaneously with the

execution of the electronic will;

(b) A photocopy, photograph, facsimile or other visual record of

any documentation that was taken contemporaneously with the

execution of the electronic will and provides satisfactory evidence

of the identities of the testator and the attesting witnesses, including,

without limitation, documentation of the methods of identification

used pursuant to subsection 4 of NRS 240.1655; and

(c) An audio and video recording of the testator, attesting

witnesses and notary public, as applicable, taken at the time the

testator, each attesting witness and notary public, as applicable,

placed his or her electronic signature on the electronic will, as

required pursuant to paragraph (b) of subsection 1 of NRS 133.085.

4. Shall provide to any court that is hearing a matter involving

an electronic will which is currently or was previously stored by the

qualified custodian any information requested by the court

pertaining to the qualifications of the qualified custodian and the

policies and practices of the qualified custodian concerning the

maintenance, storage and production of electronic wills.

5. For the purposes of this title, if a qualified custodian or

other person is required to provide written notice to a testator,

notice shall be deemed to be provided if the qualified custodian or

other person delivers written notice to the last known address of

the testator.

6. Except as otherwise provided by law, the requirements

governing an electronic will also govern an electronic codicil and

electronic revocation of a will.

Sec. 13. NRS 133.330 is hereby amended to read as follows:

133.330 1. With regard to an electronic record of an

electronic will, a qualified custodian [:

(a) Shall] shall provide access to or information concerning the

electronic will or the certified paper original of the electronic will

only to:

[(1)] (a) The testator or another person as directed by the

written instructions of the testator; and

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[(2)] (b) After the death of the testator, the nominated

personal representative of the testator or any interested person . [;

and

(b) May,]

2. A qualified custodian may, in the absolute discretion of the

qualified custodian, destroy the electronic record of an electronic

will at any [time:

(1) Five or more years] of the following times:

(a) One year after [the admission] notice of entry of an order

admitting any will [of the testator] to probate;

[(2) Five or more years after the revocation of the electronic

will;

(3) Five or more years after]

(b) After ceasing to serve as the qualified custodian of the

electronic record of the electronic will upon the appointment of a

successor qualified custodian pursuant to NRS 133.310;

[(4) Ten or more years after the death of the testator; or

(5) One hundred and fifty years after the execution of the

electronic will.

2. At]

(c) If the electronic will has been converted to a certified paper

original in accordance with NRS 133.340 and the qualified

custodian complies with subsection 4, after 30 days’ written notice

to the testator;

(d) If a certification of revocation has been created in

accordance with subsection 7 of NRS 133.340 and the qualified

custodian complies with subsection 4, after 30 days’ written notice

to the testator;

(e) Pursuant to the direction of a testator in a writing executed

with the same formalities required for the execution of a will or an

electronic will [,] ; or

(f) Upon court order authorizing the destruction of the

electronic will.

3. Subject to the provisions of subsection 4, if a certification

of revocation has been created pursuant to subsection 7 of NRS

133.340, a qualified custodian [shall cancel, render unreadable or

obliterate] may, in the absolute discretion of the qualified

custodian, destroy the electronic record [.] of an electronic

revocation at any of the following times:

(a) One year after notice of entry of an order admitting any

will to probate;

(b) If the requirements of subsection 3 of NRS 133.310 are

met, after ceasing to serve as the qualified custodian of the

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electronic will upon the appointment of a successor qualified

custodian pursuant to NRS 133.310;

(c) Pursuant to the direction of a testator in a writing executed

with the same formalities required for the execution of a will or an

electronic will;

(d) After 30 days’ written notice to the testator; or

(e) Upon court order authorizing the destruction of the

electronic record of the electronic will.

4. Before destroying an electronic will or an electronic

revocation, the qualified custodian shall make reasonable efforts

to provide to the testator the electronic record of the electronic will

and electronic revocation.

Sec. 14. NRS 133.340 is hereby amended to read as follows:

133.340 1. [Upon the creation of] A qualified custodian may

cause an electronic will to be converted into a certified paper

original of [an] the electronic will [:] under the following

circumstances:

(a) [If] At the direction of the testator; or

(b) Except as otherwise provided in subsection 9, with 30 days’

written notice to the testator that the qualified custodian intends to

convert the electronic will [has always been in the custody of a

qualified custodian, the qualified custodian shall state in an] into a

certified paper original.

2. An electronic will may be converted into a certified paper

original by creating a tangible document that contains the

following:

(a) The text of the electronic will; and

(b) An affidavit [:

(1) That the] satisfying the requirements of subsections 3, 4

and 5, as applicable.

3. A qualified custodian [is eligible to act as a] converting an

electronic will into a certified paper original shall state all of the

following in an affidavit:

(a) That the qualified custodian [in this State;

(2)] is not a person described in subsection 1 of

NRS 133.320;

(b) That the qualified custodian is the qualified custodian

designated by the testator in the electronic will or was designated to

act in such a capacity pursuant to [paragraph (b) of] subsection [1] 2

or 4 of NRS 133.310;

[(3)] (c) That an electronic record was created at the time the

testator executed the electronic will;

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[(4)] (d) That the electronic record has been in the custody

of one or more qualified custodians since the execution of the

electronic will, and has not been altered since the time it was

created;

[(5)] (e) The identity of all qualified custodians who have

had custody of the electronic record since the execution of the

electronic will;

[(6)] (f) That the certified paper original is a true, correct

and complete tangible manifestation of the electronic will; and

[(7)] (g) That the records described in subsection 3 of NRS

133.320 are in the custody of the qualified custodian.

[(b)] 4. In addition to the statements required pursuant to

subsection 3, a qualified custodian converting a self-proving

electronic will to a certified paper original shall state all of the

following in the affidavit:

(a) That the declaration or affidavits of the attesting witnesses

satisfying the requirements of NRS 133.050 were created at the

time the testator executed the electronic will and were

incorporated as part of, attached to or logically associated with the

electronic will as required pursuant to NRS 133.086;

(b) That the declarations or affidavits of the attesting witnesses

have been in the possession of a qualified custodian since the

execution of the electronic will and have not been altered since the

time they were created;

(c) The identity of all qualified custodians who have had

possession of the declarations or affidavits of the attesting

witnesses since their creation; and

(d) That the certified paper original contains a true, correct

and complete tangible manifestation of the original declarations

or affidavits of the attesting witnesses.

5. If the electronic will has not always been under the custody

of a qualified custodian, the person who discovered the electronic

will [and the person who reduced] may cause the electronic will to

[the] be converted into a certified paper original [shall each state in

an affidavit] by creating a tangible document that contains the

following [information,] :

(a) The text of the electronic will; and

(b) An affidavit that states, to the best of their knowledge:

(1) When the electronic will was created, if not indicated in

the electronic will;

(2) When, how and by whom the electronic will was

discovered;

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(3) The identities of each person who has had access to the

electronic will;

(4) The method in which the electronic will was stored and

the safeguards in place to prevent alterations to the electronic will;

(5) Whether the electronic will has been altered since its

execution; and

(6) That the certified paper original is a true, correct and

complete tangible manifestation of the electronic will.

[2.] 6. For purposes of making an affidavit pursuant to

[paragraph (a) of] subsection [1,] 3, 4 or 5, the qualified custodian

may rely conclusively on any affidavits delivered by a predecessor

qualified custodian.

7. If a testator has revoked a will through an electronic

record, the qualified custodian may convert the electronic

revocation into a certification of revocation by creating:

(a) A certified paper original of the electronic will; and

(b) A tangible document that contains the following:

(1) The text of the electronic revocation; and

(2) An affidavit stating:

(I) That an electronic record was created at the time the

testator revoked the will;

(II) That the electronic record has been in the custody of

one or more qualified custodians since the execution of the

electronic revocation, and has not been altered since the time it

was created;

(III) The identity of all qualified custodians who have

had custody of the electronic record since the execution of the

electronic revocation;

(IV) That the certified paper original is a true, correct

and complete tangible manifestation of the electronic revocation;

and

(V) That the records described in subsection 3 of NRS

133.320 pertaining to the electronic revocation are presently in the

custody of the qualified custodian.

8. A certified paper original of an electronic will satisfying

the requirements of subsection 2 or 5, as applicable, may be

offered for and admitted into probate in the same manner as if it

were an original will. A certified paper original of an electronic

will is presumed to be valid and, absent any objection, must be

admitted to probate expeditiously without requiring further proof

of validity.

9. Before the expiration of the 30 days after the qualified

custodian gives notice to the testator of the qualified custodian’s

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intent to convert the electronic will into a certified paper original

pursuant to paragraph (b) of subsection 1, if the testator objects to

the conversion and designates a successor qualified custodian in

accordance with NRS 133.310, the qualified custodian shall not

convert the electronic will into a certified paper original and shall

instead comply with paragraph (b) of subsection 2 of

NRS 133.310.

Sec. 15. NRS 139.050 is hereby amended to read as follows:

139.050 Administration may be granted upon petition to one or

more qualified persons, although not otherwise entitled to serve, at

the written request of the person entitled, filed in the court. The

qualified person making the written request must provide his or

her current address and phone number in the written request.

Failure to provide such information voids the written request.

Sec. 16. NRS 139.090 is hereby amended to read as follows:

139.090 1. A petition for letters of administration must be in

writing, signed by the petitioner or the attorney for the petitioner

and filed with the clerk of the court, and must state:

(a) The jurisdictional facts;

(b) The names and addresses of the heirs of the decedent and

their relationship to the decedent, so far as known to the petitioner,

and the age of any who is a minor;

(c) The character and estimated value of the property of the

estate; [and]

(d) The names and personal addresses of the proposed

appointed administrators and the name and personal address of

any associated coadministrator under paragraph (a) of subsection

2 of NRS 139.040 or, if the coadministrator is an attorney who is

licensed in this State or a banking corporation authorized to do

business in this State, the business address of the coadministrator;

and

(e) Whether the person to be appointed as administrator has

been convicted of a felony.

2. No defect of form or in the statement of jurisdictional facts

actually existing voids an order appointing an administrator or any

of the subsequent proceedings.

Sec. 16.5. NRS 139.100 is hereby amended to read as follows:

139.100 The clerk shall set the petition for hearing, and notice

must be given to the heirs of the decedent , [and to] the Director of

the Department of Health and Human Services as provided in NRS

155.020 [.] and, if the petitioner is not the surviving spouse or any

kindred specified in NRS 139.040 or nominated by the surviving

spouse or any such kindred, the public administrator of the county

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- 81st Session (2021)

or a person employed or contracted with pursuant to NRS 253.125,

as applicable. The notice must state the filing of the petition, the

object and the time for hearing.

Sec. 17. Chapter 143 of NRS is hereby amended by adding

thereto the provisions set forth as sections 18 and 19 of this act.

Sec. 18. 1. Except as otherwise provided in subsection 2:

(a) A person shall either accept letters of administration or

letters testamentary that have been certified within 60 days after

presentation of the certified letters of administration or letters

testamentary for acceptance, or request a translation or an

opinion of counsel, not later than 10 days after such presentation;

(b) If a person requests a translation or an opinion of counsel,

the person shall accept the certified letters of administration or

letters testamentary not later than 5 days after receipt of the

translation or opinion of counsel; and

(c) A person may not require an additional or different form of

certified letters of administration or letters testamentary for

authority granted in the letters presented.

2. A person is not required to accept certified letters of

administration or letters testamentary if:

(a) The person is not otherwise required to engage in a

transaction with the personal representative in the same

circumstances;

(b) Engaging in a transaction with the personal representative

in the same circumstances would be inconsistent with federal law;

(c) The person has actual knowledge of the termination of the

personal representative’s authority before the exercise of

authority; or

(d) A request for a translation or an opinion of counsel is

refused.

3. A person who refuses to accept certified letters of

administration or letters testamentary in violation of this section is

subject to:

(a) A court order mandating acceptance of the certified letters

of administration or letters testamentary; and

(b) Liability for reasonable attorney’s fees and costs incurred

in any action or proceeding that confirms the validity of the

certified letters of administration or letters testamentary or

mandates acceptance of the certified letters of administration or

letters testamentary.

4. After accepting certified letters of administration or letters

testamentary, a person may request newly certified letters of

administration or letters testamentary any time after the 6-month

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period following the date of the previous acceptance of certified

letters of administration or letters testamentary for the purpose of

validating the continued authority of the personal representative.

Sec. 19. 1. A person holding property that is attributable to

a decedent may only request the presentation of the following

items before transferring such property in accordance with a court

order providing to whom such property is to be transferred:

(a) A certified copy of the court order providing to whom such

property is to be transferred;

(b) A certified copy of letters of administration or letters

testamentary;

(c) The identification and contact information of the personal

representative;

(d) Tax information, if necessary; and

(e) Documents evidencing the death of the decedent.

2. Except as otherwise provided in subsection 3, if a person

holding property that is attributable to a decedent:

(a) Requests the presentation of any of the items set forth in

subsection 1, the person must accept and comply with the court

order providing to whom such property is to be transferred not

later than 10 days after the presentation of all items requested

pursuant to subsection 1.

(b) Does not request the presentation of any of the items set

forth in subsection 1, the person must accept and comply with the

court order providing to whom such property is to be transferred

not later than 10 days after being presented with the court order.

3. A person holding property that is attributable to a decedent

is not required to transfer such property if:

(a) The certification of the court order, letters of

administration or letters testamentary presented is older than 180

days;

(b) The court order is inconsistent with federal law; or

(c) The person has actual knowledge that the person

presenting the court order is not a personal representative of the

estate of the decedent.

4. The lack of legal or actual notice of the court proceeding

resulting in the issuance of the court order providing to whom

property is to be transferred is not a defense to not complying with

the order unless an actual dispute exists over title to the property.

5. A person who timely complies with a court order in

accordance with this section shall be held harmless.

6. A person who refuses to accept and comply with a court

order in violation of this section is subject to:

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(a) A court order requiring acceptance of the order; and

(b) Liability for reasonable attorney’s fees and costs incurred

in an action or proceeding confirming the validity of the court

order, and any damages resulting from the delay beginning on the

day of the presentation of all items requested pursuant to

subsection 1.

Sec. 20. NRS 143.010 is hereby amended to read as follows:

143.010 If there are two personal representatives, the acts of

one alone are valid if the other is absent from the state, or for any

cause is laboring under any legal disability [,] or conflict of interest,

and if there are more than two, the acts of a majority are sufficient.

Sec. 21. NRS 143.050 is hereby amended to read as follows:

143.050 1. Except as otherwise provided in subsection 2,

NRS 143.520 [,] or the decedent’s will, after notice given as

provided in NRS 155.010 or in such other manner as the court

directs [, the court may authorize] :

(a) Subject to the partnership agreement and the applicable

provisions of chapter 87, 87A or 88 of NRS, the personal

representative [to] may continue [the operation of the decedent’s

business to such an extent and subject to such restrictions as may

seem to the court to be for the best interest of the estate and any

interested persons.] as a general partner in any partnership in

which the decedent was a general partner at the time of death;

(b) Subject to the operating agreement and the applicable

provisions of chapter 86 of NRS, the personal representative may

continue as a manager or managing member in any limited-

liability company in which the decedent was a manager or

managing member at the time of death;

(c) The personal representative may continue operation of any

of the following:

(1) An unincorporated business or joint venture in which

the decedent was engaged at the time of death; or

(2) An unincorporated business or joint venture which was

wholly or partly owned by the decedent at the time of death; and

(d) The personal representative may continue to exercise any

shareholder, partnership or membership rights owned by the

decedent at the time of death to which the personal representative

has succeeded during the administration of the estate.

2. The [provisions of] court may, upon its own motion or

upon the petition of an interested person, restrict the actions of the

personal representative set forth in subsection 1 [do not apply to

passive investments or the exercise of any shareholder or

membership rights to which the personal representative has

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succeeded.] as the court determines to be in the best interest of the

estate and any interested persons.

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.

Sec. 22. NRS 143.165 is hereby amended to read as follows:

143.165 1. [On] Except as otherwise provided in subsection

6, on petition or ex parte application of an interested person, the

court, with or without bond, may enter an ex parte order restraining

a personal representative from performing specified acts of

administration, disbursement or distribution, or exercising any

powers or discharging any duties of the office, or enter any other

order to secure proper performance of the duties of the office to be

effective until further order of the court. Notwithstanding any other

provision of law, if it appears to the court that the personal

representative otherwise may take action that would jeopardize

unreasonably the interest of the petitioner, of some other interested

person or the estate, the court may enter the ex parte order. A person

with whom the personal representative may transact business may

be made a party to the ex parte order.

2. Any ex parte orders entered pursuant to subsection 1 must be

set for hearing within 10 days after entry of the ex parte order,

unless the parties otherwise agree, or on a date the court otherwise

determines is in the best interest of the estate.

3. Notice of entry of the ex parte order entered pursuant to

subsection 1 must be given by the petitioner or applicant to the

personal representative and the attorney of record of the personal

representative, if any, to any other party named as a party in the ex

parte order and as otherwise directed by the court.

4. The court may impose a fine on an interested person who

obtains an ex parte order pursuant to this section without probable

cause.

5. The court may, at any time, terminate an ex parte order

entered pursuant to subsection 1 on its own motion or upon petition

of the personal representative if it no longer appears to the court that

the personal representative otherwise may take action that would

jeopardize unreasonably the interest of the petitioner, of some other

interested person or the estate.

6. A public administrator or a person employed or contracted

with pursuant to NRS 253.125, as applicable, must not be required

to post a bond for obtaining any order pursuant to this section.

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Sec. 23. NRS 143.305 is hereby amended to read as follows:

143.305 As used in NRS 143.300 to 143.815, inclusive, and

section 19 of this act, unless the context otherwise requires, the

words and terms defined in NRS 143.310, 143.315 and 143.320

have the meanings ascribed to them in those sections.

Sec. 24. NRS 143.345 is hereby amended to read as follows:

143.345 1. If the authority to administer the estate pursuant

to NRS 143.300 to 143.815, inclusive, and section 19 of this act is

requested in a petition for appointment of the personal

representative, notice of the hearing on the petition must be given

for the period and in the manner applicable to the petition for

appointment.

2. Where proceedings for the administration of the estate are

pending at the time a petition is filed pursuant to NRS 143.340,

notice of the hearing on the petition must be given for the period and

in the manner provided in NRS 155.010 to all the following persons:

(a) Each person specified in NRS 155.010;

(b) Each known heir whose interest in the estate would be

affected by the petition;

(c) Each known devisee whose interest in the estate would be

affected by the petition; [and]

(d) Each person named as personal representative in the will of

the decedent [.] ; and

(e) The public administrator of the county or a person

employed or contracted with pursuant to NRS 253.125, as

applicable, if the decedent died intestate and the petitioner is not

the surviving spouse or kindred under NRS 139.040, regardless of

any nomination by an heir.

3. The notice of hearing of the petition for authority to

administer the estate pursuant to NRS 143.300 to 143.815,

inclusive, and section 19 of this act, whether included in the

petition for appointment or in a separate petition, must include a

statement in substantially the following form:

The petition requests authority to administer the estate

under the Independent Administration of Estates Act. This

will avoid the need to obtain court approval for many actions

taken in connection with the estate. However, before taking

certain actions, the personal representative will be required to

give notice to interested persons unless they have waived

notice or have consented to the proposed action. Independent

administration authority will be granted unless good cause is

shown why it should not be.

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- 81st Session (2021)

Sec. 25. NRS 143.350 is hereby amended to read as follows:

143.350 1. Except as otherwise provided in subsection 2,

unless an interested person , including, without limitation, a person

who receives notice under NRS 143.345, objects in writing at or

before the hearing to the granting of authority to administer the

estate pursuant to NRS 143.300 to 143.815, inclusive, and section

19 of this act and the court determines that the interested person has

shown good cause why the authority to administer the estate under

those provisions should not be granted, the court [shall] may grant

the requested authority.

2. If the interested person has shown good cause why only

limited authority should be granted, the court [shall] may grant

limited authority.

Sec. 25.5. NRS 143.380 is hereby amended to read as follows:

143.380 1. [Subject] Except as otherwise provided in

subsection 4, and subject to the limitations and requirements of

NRS 143.370, when the personal representative exercises the

authority to sell property of the estate after being granted full

authority pursuant to NRS 143.300 to 143.815, inclusive, the

personal representative may sell the property at public auction or

private sale, and with or without notice, for cash or on credit, for

such price and upon such terms and conditions as the personal

representative may determine.

2. The requirements applicable to court confirmation of sales

of real property referenced in subsection 1 include, without

limitation:

(a) Publication of the notice of sale;

(b) Court approval of agents’ and brokers’ commissions;

(c) The sale being not less than 90 percent of appraised value of

the real property;

(d) An examination by the court into the necessity for the sale of

the real property, including, without limitation, any advantage to the

estate and benefit to interested persons; and

(e) The efforts of the personal representative to obtain the

highest and best price for the property reasonably attainable.

3. The requirements applicable to court confirmation of sales

of real property and sales of personal property do not apply to a sale

pursuant to this section.

4. If the personal representative determines that the sale of

real property pursuant to this section will be less than 90 percent

of the appraised value of the real property:

(a) All interested persons must consent in writing to the sale

before the personal representative may proceed with the sale; and

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(b) The sale must be confirmed by the court pursuant to

NRS 148.060.

Sec. 26. NRS 143.520 is hereby amended to read as follows:

143.520 1. Subject to the partnership agreement , [and] the

applicable provisions of chapter 87 , 87A or 88 of NRS [,] and the

decedent’s will, the personal representative who has limited

authority or full authority has the power to continue as a general

partner in any partnership in which the decedent was a general

partner at the time of death.

2. Subject to the operating agreement, the applicable

provisions of chapter 86 of NRS and the decedent’s will, the

personal representative who has limited authority or full authority

has the power to continue as a manager or managing member in

any limited-liability company in which the decedent was a

manager or managing member at the time of death.

3. The personal representative who has limited authority or full

authority has the power to continue operation of any of the

following:

(a) An unincorporated business or joint venture in which the

decedent was engaged at the time of [the decedent’s] death.

(b) An unincorporated business or joint venture which was

wholly or partly owned by the decedent at the time of [the

decedent’s] death.

[3.] 4. The personal representative who has limited authority

or full authority has the power to continue to exercise any

shareholder, partnership or membership rights owned by the

decedent at the time of death to which the personal representative

has succeeded during the administration of the estate.

5. Except as otherwise provided in subsection [4,] 6, the

personal representative may exercise the powers described in

subsections 1 [and 2] to 4, inclusive, without giving notice of the

proposed action pursuant to NRS 143.700 to 143.760, inclusive.

[4.] 6. The personal representative shall give notice of a

proposed action pursuant to NRS 143.700 to 143.760, inclusive, if

the personal representative continues as a general partner under

subsection 1 [,] or a manager or managing member under

subsection 2 or continues the operation of any unincorporated

business or joint venture under subsection [2,] 3, for a period of

more than 6 months after the date on which letters are first issued to

a personal representative.

Sec. 27. NRS 146.070 is hereby amended to read as follows:

146.070 1. All or part of the estate of a decedent may be set

aside without administration by the order of the court as follows:

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(a) If the value of a decedent’s estate does not exceed $100,000,

the estate may be set aside without administration by the order of

the court [.] ; or

(b) If a decedent’s will directs that all or part of the decedent’s

estate is to be distributed to the trustee of a nontestamentary trust

established by the decedent and in existence at the decedent’s

death, the portion of the estate subject to such direction may be set

aside without administration. Any portion of a decedent’s estate

set aside to the nontestamentary trust pursuant to this paragraph

is subject to creditors of the estate unless the petitioner provides

proof to the court that the trustee has published or mailed the

requisite notice to such creditors on behalf of the nontestamentary

trust and settlor pursuant to NRS 164.025.

2. Except as otherwise provided in subsection 3, the whole

estate set aside pursuant to paragraph (a) of subsection 1 must be

assigned and set apart in the following order:

(a) To the payment of the petitioner’s attorney’s fees and costs

incurred relative to the proceeding under this section;

(b) To the payment of funeral expenses, expenses of last illness,

money owed to the Department of Health and Human Services as a

result of payment of benefits for Medicaid and creditors, if there are

any;

(c) To the payment of other creditors, if any; and

(d) Any balance remaining to the claimant or claimants entitled

thereto pursuant to a valid will of the decedent, and if there is no

valid will, pursuant to intestate succession in accordance with

chapter 134 of NRS.

3. If the value of the estate does not exceed $100,000 and the

decedent is survived by a spouse or one or more minor children, the

court must set aside the estate for the benefit of the surviving spouse

or the minor child or minor children of the decedent, subject to any

reduction made pursuant to subsection 4 or 5. The court may

allocate the entire estate to the surviving spouse, the entire amount

to the minor child or minor children, or may divide the estate among

the surviving spouse and minor child or minor children.

4. As to any amount set aside to or for the benefit of the

surviving spouse or minor child or minor children of the decedent

pursuant to subsection 3, the court must set aside the estate without

the payment of creditors except as the court finds necessary to

prevent a manifest injustice.

5. To prevent an injustice to creditors when there are

nonprobate transfers that already benefit the surviving spouse or

minor child or minor children of the decedent, the court has the

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discretion to reduce the amount set aside under subsection 3 to the

extent that the value of the estate, when combined with the value of

nonprobate transfers, as defined in NRS 111.721, from the decedent

to or for the benefit of the surviving spouse or minor child or minor

children of the decedent exceeds $100,000.

6. In exercising the discretion granted in this section, the court

shall consider the needs and resources of the surviving spouse and

minor child or minor children, including any assets received by or

for the benefit of the surviving spouse or minor child or minor

children from the decedent by nonprobate transfers.

7. For the purpose of this section, a nonprobate transfer from

the decedent to one or more trusts or custodial accounts for the

benefit of the surviving spouse or minor child or minor children

shall be considered a transfer for the benefit of such spouse or minor

child or minor children.

8. Proceedings taken under this section must not begin until at

least 30 days after the death of the decedent and must be originated

by a petition containing:

(a) A specific description of all property in the decedent’s estate;

(b) A list of all known liens and encumbrances against estate

property at the date of the decedent’s death, with a description of

any that the petitioner believes may be unenforceable;

(c) An estimate of the value of the property, together with an

explanation of how the estimated value was determined;

(d) A statement of the debts of the decedent so far as known to

the petitioner;

(e) The names and residences of the heirs and devisees of the

decedent and the age of any who is a minor and the relationship of

the heirs and devisees to the decedent, so far as known to the

petitioner; and

(f) If the decedent left a will, a statement concerning all

evidence known to the petitioner that tends to prove that the will is

valid.

9. If the petition seeks to have the estate set aside for the

benefit of the decedent’s surviving spouse or minor child or minor

children without payment to creditors, the petition must also

contain:

(a) A specific description and estimated value of property

passing by one or more nonprobate transfers from the decedent to

the surviving spouse or minor child or minor children; or

(b) An allegation that the estimated value of the property sought

to be set aside, combined with the value of all nonprobate transfers

from the decedent to the surviving spouse or minor child or minor

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children who are seeking to receive property pursuant to this

section, is less than $100,000.

10. When property is distributed pursuant to an order granted

under this section, the court may allocate the property on a pro rata

basis or a non-pro rata basis.

11. The clerk shall set the petition for hearing and the

petitioner shall give notice of the petition and hearing in the manner

provided in NRS 155.010 to the decedent’s heirs and devisees and

to the Director of the Department of Health and Human Services. If

a complete copy of the petition is not enclosed with the notice, the

notice must include a statement setting forth to whom the estate is

being set aside.

12. No court or clerk’s fees may be charged for the filing of

any petition in, or order of court thereon, or for any certified copy of

the petition or order in an estate not exceeding $2,500 in value.

13. At the hearing on a petition under this section, the court

may require such additional evidence as the court deems necessary

to make the findings required under subsection 14.

14. The order granting the petition shall include:

(a) The court’s finding as to the validity of any will presented;

(b) The court’s finding as to the value of the estate and, if

relevant for the purposes of subsection 5, the value of any property

subject to nonprobate transfers;

(c) The court’s determination of any property set aside under

subsection 2;

(d) The court’s determination of any property set aside under

subsection 3, including, without limitation, the court’s determination

as to any reduction made pursuant to subsection 4 or 5; and

(e) The name of each distributee and the property to be

distributed to the distributee.

15. As to the distribution of the share of a minor child set aside

pursuant to this section, the court may direct the manner in which

the money may be used for the benefit of the minor child as is

deemed in the court’s discretion to be in the best interests of the

minor child, and the distribution of the minor child’s share shall be

made as permitted for the minor child’s share under the terms of the

decedent’s will or to one or more of the following:

(a) A parent of such minor child, with or without the filing of

any bond;

(b) A custodian under chapter 167 of NRS; or

(c) A court-appointed guardian of the estate, with or without

bond.

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16. For the purposes of this section, the value of property must

be the fair market value of that property, reduced by the value of all

enforceable liens and encumbrances. Property values and the values

of liens and encumbrances must be determined as of the date of the

decedent’s death.

Sec. 28. NRS 150.060 is hereby amended to read as follows:

150.060 1. An attorney for a personal representative is

entitled to reasonable compensation for the attorney’s services, to be

paid out of the decedent’s estate.

2. An attorney for a personal representative may be

compensated based on:

(a) The applicable hourly rate of the attorney;

(b) The value of the estate accounted for by the personal

representative;

(c) An agreement as set forth in subsection 4 of NRS 150.061;

or

(d) Any other method preapproved by the court pursuant to a

request in the initial petition for the appointment of the personal

representative.

3. If the attorney is requesting compensation based on the

hourly rate of the attorney, he or she may include, as part of that

compensation for ordinary services, a charge for legal services or

paralegal services performed by a person under the direction and

supervision of the attorney.

4. If the attorney is requesting compensation based on the

value of the estate accounted for by the personal representative, the

[allowable] court shall allow compensation of the attorney for

ordinary services [must be determined] as follows:

(a) For the first $100,000, at the rate of 4 percent;

(b) For the next $100,000, at the rate of 3 percent;

(c) For the next $800,000, at the rate of 2 percent;

(d) For the next $9,000,000, at the rate of 1 percent;

(e) For the next $15,000,000, at the rate of 0.5 percent; and

(f) For all amounts above $25,000,000, a reasonable amount to

be determined by the court.

5. Before an attorney may receive compensation based on the

value of the estate accounted for by the personal representative, the

personal representative must sign a written agreement as required by

subsection 8. The agreement must be prepared by the attorney and

must include detailed information, concerning, without limitation:

(a) The schedule of fees to be charged by the attorney;

(b) The manner in which compensation for extraordinary

services may be charged by the attorney; and

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(c) The fact that the court is required to approve the

compensation of the attorney pursuant to subsection 8 before the

personal representative pays any such compensation to the attorney.

6. For the purposes of determining the compensation of an

attorney pursuant to subsection 4, the value of the estate accounted

for by the personal representative:

(a) Is the total amount of the appraisal of property in the

inventory, plus:

(1) The gains over the appraisal value on sales; and

(2) The receipts, less losses from the appraisal value on sales;

and

(b) Does not include encumbrances or other obligations on the

property of the estate.

7. In addition to the compensation for ordinary services of an

attorney set forth in this section, an attorney may also be entitled to

receive compensation for extraordinary services as set forth in

NRS 150.061.

8. The compensation of the attorney must be fixed by written

agreement between the personal representative and the attorney, and

is subject to approval by the court, after petition, notice and hearing

as provided in this section. 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 requesting approval of the compensation

of the attorney must contain specific and detailed information

supporting the entitlement to compensation, including:

(a) If the attorney is requesting compensation based upon the

value of the estate accounted for by the personal representative, the

attorney must provide the manner of calculating the compensation in

the petition; and

(b) If the attorney is requesting compensation based on an

hourly basis, or is requesting compensation for extraordinary

services, the attorney must provide the following information to the

court:

(1) Reference to time and hours;

(2) The nature and extent of services rendered;

(3) Claimed ordinary and extraordinary services;

(4) The complexity of the work required; and

(5) Other information considered to be relevant to a

determination of entitlement.

9. The clerk shall set the petition for hearing, and the petitioner

shall give notice of the petition to the personal representative if he

or she is not the petitioner and to all known heirs in an intestacy

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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.

10. 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. If the attorney is requesting

compensation based upon the value of the estate as accounted for by

the personal representative, the court may apportion the

compensation as it deems appropriate given the amount of work

remaining to close the estate.

11. An heir or devisee may file objections to a petition filed

pursuant to this section, and the objections must be considered at the

hearing.

12. 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 the attorney 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.

Sec. 29. NRS 155.094 is hereby amended to read as follows:

155.094 1. “Independent attorney” means an attorney, other

than an attorney who:

[1.] (a) Is a transferee described in subsection 2 of NRS

155.097; or

[2.] (b) Served as an attorney for a person who is described in

subsection 2 of NRS 155.097 at the time of the execution of the

transfer instrument.

2. The term includes, without limitation, the drafting attorney

representing the transferor in preparation of the transfer

instrument if the drafting attorney is not a person described in

paragraph (a) or (b) of subsection 1.

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Sec. 30. NRS 159.0753 is hereby amended to read as follows:

159.0753 1. Any person who wishes to request to nominate

another person to be appointed as his or her guardian may do so

[by] :

(a) If nominating a guardian of the estate, pursuant to

NRS 162A.250;

(b) If nominating a guardian of the person, pursuant to NRS

162A.800; or

(c) By completing a form requesting to nominate a guardian in

accordance with this section.

2. A form requesting to nominate a guardian pursuant to this

section must be:

(a) Signed by the person requesting to nominate a guardian;

(b) Signed by two impartial adult witnesses who have no

interest, financial or otherwise, in the estate of the person requesting

to nominate a guardian and who attest that the person has the mental

capacity to understand and execute the form; and

(c) Notarized.

3. A request to nominate a guardian pursuant to this section

may be in substantially the following form, and must be witnessed

and executed in the same manner as the following form:

REQUEST TO NOMINATE GUARDIAN

I, .................... (insert your name), residing at ...................

(insert your address), am executing this notarized document

as my written declaration and request for the person(s)

designated below to be appointed as my guardian should it

become necessary. I am advising the court and all persons

and entities as follows:

1. As of the date I am executing this request to nominate

a guardian, I have the mental capacity to understand and

execute this request.

2. This request pertains to a (circle one): (guardian of the

person)/(guardian of the estate)/(guardian of the person and

estate).

3. Should the need arise, I request that the court give my

preference to the person(s) designated below to serve as my

appointed guardian.

4. I request that my .................... (insert relation),

.................... (insert name), serve as my appointed guardian.

5. If .................... (insert name) is unable or unwilling to

serve as my appointed guardian, then I request that my

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.................... (insert relation), .................... (insert name),

serve as my appointed guardian.

6. I do not, under any circumstances, desire to have any

private, for-profit guardian serve as my appointed guardian.

(YOU MUST DATE AND SIGN THIS DOCUMENT)

I sign my name to this document on ................. (date)

.........................................................................

(Signature)

(YOU MUST HAVE TWO QUALIFIED ADULT

WITNESSES

DATE AND SIGN THIS DOCUMENT)

I declare under penalty of perjury that the principal is

personally known to me, that the principal signed this request

to nominate a guardian in my presence, that the principal

appears to be of sound mind, has the mental capacity to

understand and execute this document and is under no duress,

fraud or undue influence, and that I have no interest, financial

or otherwise, in the estate of the principal.

...................................................................

(Signature of first witness)

...................................................................

(Print name)

...................................................................

(Date)

...................................................................

(Signature of second witness)

...................................................................

(Print name)

...................................................................

(Date)

CERTIFICATE OF ACKNOWLEDGMENT

OF NOTARY PUBLIC

State of Nevada }

}

County of ..................................... }

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On this .......... day of ..............., in the year ......., before

me, .................... (insert name of notary public), personally

appeared .................... (insert name of principal), ....................

(insert name of first witness) and .................... (insert name of

second witness), personally known to me (or proved to me on

the basis of satisfactory evidence) to be the persons whose

names are subscribed to this instrument, and acknowledged

that they have signed this instrument.

...................................................................

(Signature of notarial officer)

(Seal, if any)

4. The Secretary of State shall make the form established in

subsection 3 available on the Internet website of the Secretary of

State.

5. The Secretary of State may adopt any regulations necessary

to carry out the provisions of this section.

Sec. 31. Chapter 163 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. A governing trust instrument may authorize the trustee, in

the sole discretion of the trustee or at the direction or with the

consent of a directing trust adviser, to reimburse a settlor for all or

a portion of tax on trust income or principal that is payable by the

settlor under the law imposing such tax. In the sole discretion of

the trustee, the trustee may pay such amount to the settlor directly

or to an appropriate taxing authority on behalf of the settlor.

2. A trustee or directing trust adviser is not liable to any

person in exercising such discretion to reimburse or not reimburse

a settlor for tax payable by the settlor on trust income or principal

pursuant to subsection 1.

3. The power of a trustee to make a payment to or for the

benefit of a settlor in accordance with subsection 1 or the decision

of a trustee to exercise such power in favor of the settlor must not

cause the settlor to be treated as a beneficiary for purposes of the

laws of this State. As used in this subsection, “beneficiary” has the

meaning ascribed to it in NRS 163.4147.

Sec. 32. NRS 163.002 is hereby amended to read as follows:

163.002 1. Except as otherwise provided by specific statute

[,] or any regulatory or contractual restrictions, a trust may be

created by any of the following methods:

(a) A declaration by the owner of property that he or she or

another person holds the property as trustee. In the absence of a

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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 the

property:

(1) Property declared to be trust property, together with all

income therefrom and the reinvestment thereof, must remain trust

property; and

(2) If the property declared to be trust property includes an

account, contract, certificate, note, judgment, business interest,

contents of a safe deposit box or other property interest that is

subject to additions or contributions, all subsequent additions and

contributions to the property are also trust property.

(b) A transfer of property by the owner during his or her lifetime

to another person as trustee.

(c) A testamentary transfer of property by the owner to another

person as trustee.

(d) An exercise of a power of appointment in trust.

(e) An enforceable promise to create a trust.

2. A declaration pursuant to paragraph (a) of subsection 1 may

, but is not required, to 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.

3. A declaration by the owner of property pursuant to

paragraph (a) of subsection 1 that he or she or another person

holds all the property of the declarant in trust is sufficient to

create a trust over all the property of the declarant that is reliably

identified through the use of extrinsic evidence as belonging to the

declarant at the time of his or her death.

Sec. 33. NRS 163.004 is hereby amended to read as follows:

163.004 1. Except as otherwise provided by law, the terms of

a trust instrument may expand, restrict, eliminate or otherwise vary

the rights and interests of beneficiaries in any manner that is not

illegal or against public policy, including, without limitation:

(a) The right to be informed of the beneficiary’s interest for a

period of time;

(b) The grounds for the removal of a fiduciary;

(c) The circumstances, if any, in which the fiduciary must

diversify investments;

(d) A fiduciary’s powers, duties, standards of care, rights of

indemnification and liability to persons whose interests arise from

the trust instrument; and

(e) The provisions of general applicability to trusts and trust

administration.

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2. A trust is irrevocable except to the extent that [a right to

amend the trust or] a right to revoke the trust is expressly reserved

by the settlor [or is granted to one or more other persons] under the

terms of the trust instrument. [Notwithstanding the provisions of this

subsection, the following powers do] Any authority, power or right

granted to any person other than the settlor under the terms of the

trust instrument or by law, including, without limitation, the power

or right to amend the trust, does not render or make a trust

revocable . [:

(a) Power of appointment;

(b) Power to add or remove beneficiaries;

(c) Power to appoint, remove or replace the trustee; or

(d) Power to make administrative amendments.]

3. Nothing in this section shall be construed to:

(a) Authorize the exculpation or indemnification of a fiduciary

for the fiduciary’s own willful misconduct or gross negligence; or

(b) Preclude a court of competent jurisdiction from removing a

fiduciary because of the fiduciary’s willful misconduct or gross

negligence.

4. The rule that statutes in derogation of the common law are to

be strictly construed has no application to this section. This section

must be liberally construed to give maximum effect to the principle

of freedom of disposition and to the enforceability of trust

instruments.

Sec. 34. NRS 163.0095 is hereby amended to read as follows:

163.0095 1. An electronic trust is a trust instrument that:

(a) Is created and maintained in an electronic record in such a

manner that any alteration thereto is detectable;

(b) Contains the electronic signature of the settlor and the date

and time thereof;

(c) Includes, without limitation, an authentication method which

is attached to or logically associated with the trust instrument to

identify the settlor or is electronically notarized in accordance with

all applicable provisions of law;

(d) Is subject to the provisions of chapter 719 of NRS; and

(e) Meets the requirements set forth in this chapter for a valid

trust.

2. Regardless of the physical location of the settlor, an

electronic trust shall be deemed to be executed in this State and will

be governed by the laws of this State and subject to the jurisdiction

of the courts of this State if the electronic trust is:

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(a) Transmitted to and maintained by a custodian designated in

the trust instrument at the custodian’s place of business in this State

or at the custodian’s residence in this State; or

(b) Maintained by the settlor at the settlor’s place of business in

this State or at the settlor’s residence in this State, or by the trustee

at the trustee’s place of business in this State or at the trustee’s

residence in this State.

3. Notwithstanding the provisions of subsection 2, the validity

of a notarial act performed by an electronic notary public must be

determined by applying the laws of the jurisdiction in which the

electronic notary public is commissioned or appointed.

4. The provisions of this section do not apply to a testamentary

trust.

5. The custodian of an electronic trust may convert the

electronic trust into a certified paper original of the electronic

trust under the following circumstances:

(a) At the direction of the settlor or the trustee; or

(b) Except as otherwise provided in subsection 8, with 30 days’

written notice, delivered to the last known address of the settlor or

trustee, that the custodian intends to convert the electronic trust

into a certified paper original.

6. An electronic trust may be converted into a certified paper

original by creating a tangible document that contains the

following:

(a) The text of the electronic trust; and

(b) An affidavit of the custodian or an employee of the

custodian stating:

(1) That the electronic record was created at the time the

settlor executed the electronic trust;

(2) The identities of all custodians who have had custody of

the electronic record since the execution of the electronic trust;

(3) That the certified paper original is a true, correct and

complete tangible manifestation of the electronic trust; and

(4) That the electronic record of the electronic trust is

presently in the custody of the custodian.

7. The custodian of an electronic trust may destroy the

electronic record of the electronic trust after converting the

electronic trust into a certified paper original if the custodian:

(a) Provides 30 days’ written notice, delivered to the last

known address of the settlor or trustee, that the custodian intends

to destroy the record and the settlor or trustee does not object

within the 30-day period; and

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(b) Makes a reasonable effort to provide the electronic record

to the settlor or trustee before destroying the electronic record.

8. Before the expiration of the 30 days after the custodian

gives notice to the settlor or trustee pursuant to paragraph (b) of

subsection 5, if the settlor or trustee objects to the conversion of

the electronic trust into a certified paper original and agrees to

take custody of the electronic trust, the custodian shall not convert

the electronic trust into a certified paper original and shall deliver

the electronic record of the electronic trust to the settlor or trustee

or to such other person as the settlor or trustee may direct.

9. As used in this section:

(a) “Authentication characteristic” has the meaning ascribed to it

in NRS 133.085.

(b) “Authentication method” means a method of identification

using any applicable method authorized or required by law,

including, without limitation, a digital certificate using a public key

or a physical device, including, without limitation, a smart card,

flash drive or other type of token, an authentication characteristic or

another commercially reasonable method.

(c) “Certified paper original” means a tangible document that

contains the text of an electronic trust.

(d) “Public key” has the meaning ascribed to it in NRS 720.110.

Sec. 35. NRS 163.025 is hereby amended to read as follows:

163.025 1. Except as otherwise provided by the terms of the

trust instrument, a trustee may combine two or more trusts into a

single trust or divide a trust into two or more separate trusts if the

combination or division does not:

(a) Impair the rights of any beneficiary;

(b) Substantially affect the accomplishment of the purposes of

the trust or trusts; or

(c) Violate the rule against perpetuities applicable to the trust or

trusts.

2. [The] If the terms of the trust instrument do not expressly

authorize the combination or division of trusts, then the

combination or division of trusts must be made [only] by court

order or after giving notice of the proposed action and following the

procedure set forth in NRS 164.725. The notice of the proposed

action must include a summary of the anticipated tax consequences,

if any, of the proposed combination or division.

Sec. 36. NRS 163.553 is hereby amended to read as follows:

163.553 As used in NRS 163.553 to 163.556, inclusive, and

section 31 of this act, unless the context otherwise requires, the

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words and terms defined in NRS 163.5533 to 163.5547, inclusive,

have the meanings ascribed to them in those sections.

Sec. 37. NRS 163.5557 is hereby amended to read as follows:

163.5557 1. An instrument may provide for the appointment

of a person to act as an investment trust adviser or a distribution

trust adviser with regard to investment decisions or discretionary

distributions.

2. An investment trust adviser may exercise the powers

provided to the investment trust adviser in the instrument in the best

interests of the trust. The powers exercised by an investment trust

adviser are at the sole discretion of the investment trust adviser and

are binding on all other persons. The powers granted to an

investment trust adviser may include, without limitation, the power

to:

(a) Direct the trustee with respect to the retention, purchase, sale

or encumbrance of trust property and the investment and

reinvestment of principal and income of the trust.

(b) Vote proxies for securities held in trust.

(c) Select one or more investment advisers, managers or

counselors, including the trustee, and delegate to such persons any

of the powers of the investment trust adviser.

(d) Value non-publicly traded investments held in trust that

are subject to the investment management authority of the

investment trust adviser.

3. A distribution trust adviser may exercise the powers

provided to the distribution trust adviser in the instrument in the best

interests of the trust. The powers exercised by a distribution trust

adviser are at the sole discretion of the distribution trust adviser and

are binding on all other persons. Except as otherwise provided in the

instrument, the distribution trust adviser shall direct the trustee with

regard to all discretionary distributions to a beneficiary.

Sec. 38. NRS 163.5559 is hereby amended to read as follows:

163.5559 1. Except as otherwise provided in subsection 2, a

creditor of a settlor may not seek to satisfy a claim against the settlor

from the assets of a trust [if the settlor’s sole interest in the trust is]

because of the existence of [a] :

(a) A discretionary power granted to a person other than the

settlor by the terms of the trust or by operation of law or to

reimburse the settlor for any tax on trust income or principal which

is payable by the settlor under the law imposing such tax [.] ;

(b) A power allowing the settlor to reacquire the trust corpus

by substituting other property of an equivalent value; or

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(c) A power allowing the settlor to borrow trust corpus or

income, directly or indirectly, without adequate interest or without

adequate security.

2. The provisions of subsection 1 do not [apply to] preclude a

creditor from seeking to satisfy a claim against the settlor of a

spendthrift trust from trust property transferred by the settlor to the

extent [a] the creditor can prove by clear and convincing evidence

that the transfer was fraudulent as to that creditor pursuant to

chapter 112 of NRS or [was otherwise wrongful as to] violates a

legal obligation owed to that creditor under a contract or a valid

court order that is legally enforceable by that creditor.

3. For purposes of this section, a beneficiary of a trust shall be

deemed to not be a settlor of a trust because of a lapse, waiver or

release of the beneficiary’s right to withdraw part or all of the trust

property if the value of the property which could have been

withdrawn by exercising the right of withdrawal in any calendar

year does not, at the time of the lapse, waiver or release, exceed the

greater of the amount provided in 26 U.S.C. § 2041(b)(2), 26 U.S.C.

§ 2503(b) or 26 U.S.C. § 2514(e), as amended, or any successor

provision.

Sec. 39. NRS 163.556 is hereby amended to read as follows:

163.556 1. 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 , whether

acting in the trustee’s own discretion or at the direction or with the

consent of another party pursuant to the terms of the trust

instrument, may exercise such discretion or authority by appointing

the property subject to such discretion or authority in favor of a

second trust as provided in this section.

2. The second trust to which a trustee appoints property of the

original trust may only have as beneficiaries one or more of the

beneficiaries of the original trust:

(a) To or for whom a distribution of income or principal may be

made from the original trust;

(b) To or for whom a distribution of income or principal may be

made in the future from the original trust at a time or upon the

happening of an event specified under the original trust; or

(c) Both paragraphs (a) and (b).

 For purposes of this subsection, a permissible appointee of a

power of appointment exercised by a beneficiary of the second trust

is not considered a beneficiary of the second trust.

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3. A trustee may not appoint property of the original trust to a

second trust if:

(a) Appointing the property will reduce any income interest of

any income beneficiary of the original trust if the original trust is:

(1) A trust for which a marital deduction has been taken for

federal or state income, gift or estate tax purposes;

(2) A trust for which a charitable deduction has been taken

for federal or state income, gift or estate tax purposes; or

(3) A grantor-retained annuity trust or unitrust under

26 C.F.R. § 25.2702-3(b) and (c).

 As used in this paragraph, “unitrust” has the meaning ascribed to

it in NRS 164.700.

(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

after the exercise of such appointment, the beneficiary of the

original trust’s power of withdrawal is unchanged with respect to

the trust property.

(c) [Property specifically allocated for one beneficiary of the

original trust is no longer allocated for that beneficiary under either

or both trusts, unless the beneficiary consents in writing.

(d)] A contribution made to the original trust qualified for a gift

tax exclusion as described in section 2503(b) of the Internal

Revenue Code, 26 U.S.C. § 2503(b), by reason of the application of

section 2503(c) of the Internal Revenue Code, 26 U.S.C. § 2503(c),

unless the second trust provides that the beneficiary’s remainder

interest must vest not later than the date upon which such interest

would have vested under the terms of the original trust.

4. A trustee who is a beneficiary of the original trust may not

exercise the authority to appoint property of the original trust to a

second trust if:

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

governing the administration of the original trust:

(1) The trustee does not have discretion to make distributions

to himself or herself;

(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

ascertainable standard; 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

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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; or

(b) Under the terms of the original trust or pursuant to law

governing the administration of the original trust, the trustee of the

original trust does not have discretion to make distributions that will

discharge the trustee’s legal support obligations but under the

second trust the trustee’s discretion is not limited.

5. Notwithstanding the provisions of subsection 1, a trustee

who may be removed by the beneficiary or beneficiaries of the

original trust and replaced with a trustee that is related to or

subordinate, as described in section 672 of the Internal Revenue

Code, 26 U.S.C. § 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.

6. The provisions of subsections 4 and 5 do not prohibit a

trustee who is not a beneficiary of the original trust or who may not

be removed by the beneficiary or beneficiaries and replaced with a

trustee that is related to or subordinate to a beneficiary from

exercising the authority to appoint property of the original trust to a

second trust pursuant to the provisions of subsection 1.

7. Before appointing property pursuant to subsection 1, a

trustee may give notice of a proposed action pursuant to

NRS 164.725 or may petition a court for approval pursuant to NRS

153.031, 164.015 or 164.725. Any notice of a proposed action or a

petition for a court’s approval must include the trustee’s opinion of

how the appointment of property will affect the trustee’s

compensation and the administration of other trust expenses.

8. The trust instrument of the second trust may:

(a) Grant a general or limited power of appointment to one or

more of the beneficiaries of the second trust who are beneficiaries of

the original trust.

(b) Provide that, at a time or occurrence of an event specified in

the trust instrument, the remaining trust assets in the second trust

must be held for the beneficiaries of the original trust upon terms

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and conditions that are substantially identical to the terms and

conditions of the original trust.

9. The power to appoint the property of the original trust

pursuant to subsection 1 must be exercised by a writing, signed by

the trustee and filed with the records of the trust.

10. The exercise of the power to invade principal of the

original trust pursuant to subsection 1 is considered the exercise of a

power of appointment, other than power to appoint the property to

the trustee, the trustee’s creditors, the trustee’s estate or the creditors

of the trustee’s estate and the provisions of NRS 111.1031 apply to

such power of appointment.

11. The provisions of this section do not abridge the right of

any trustee who has the power to appoint property which arises

under any other law [.] or under the terms of the original trust.

12. The provisions of this section do not impose upon a trustee

a duty to exercise the power to appoint property pursuant to

subsection 1.

13. 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

may not be amended.

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.

15. A trustee exercising any power granted pursuant to this

section may designate himself or herself or any other person

permitted to act as a trustee as the trustee of the second trust.

16. The trustee of a second trust, resulting from the exercise of

the power to appoint property to another trust pursuant to subsection

1, may also exercise the powers granted pursuant to this section with

respect to the second trust.

17. [This] Except as otherwise provided under the terms of

the trust, the power of a trustee to appoint property to another

trust is in addition to any other powers conferred by the terms of

the trust or under the laws of this State. This section does not

expand, restrict, eliminate or otherwise alter any power that, with

respect to a trust, a person holds in a nonfiduciary capacity.

18. The power of a trustee to appoint property to another trust

is an administrative act under this section and, therefore,

regardless of whether a trust applies the laws of this State for

construction or validity issues, this section applies to a trust that is

governed by, sitused in or administered under the laws of this State,

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whether the trust is initially governed by, sitused in or administered

under the laws of this State pursuant to the terms of the trust

instrument or whether the governing law, situs or administration of

the trust is moved to this State from another state or foreign

jurisdiction.

[18.] 19. The power to appoint property to a second trust

pursuant to this section may be exercised to appoint property to a

second trust that is a special needs trust, pooled trust or third-party

trust.

[19.] 20. As used in this section:

(a) “Ascertainable standard” means a standard relating to a

person’s health, education, support or maintenance within the

meaning of section 2041(b)(1)(A) or 2514(c)(1) of the Internal

Revenue Code, 26 U.S.C. § 2041(b)(1)(A) or 2514(c)(1), and any

regulations of the United States Treasury promulgated thereunder.

(b) “Pooled trust” means a trust described in 42 U.S.C. §

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.

(c) “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 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 satisfied by the signature of the

trustee of the original trust. The second trust may be a trust created

under [:

(1) The] the original trust instrument, as modified after an

appointment of property made pursuant to this section , [;] or [

(2) A] a different trust instrument. If the second trust is

created under the original trust instrument, as modified after an

appointment of property made pursuant to this section, and is

therefore the modified original trust, a trustee may exercise the

power to appoint the trust property from the original trust to the

second trust without an actual distribution of the property subject

to the appointment.

(d) “Special needs trust” means a trust under 42 U.S.C. §

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

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for purposes of eligibility for Medicaid or other needs-based public

assistance.

(e) “Third-party trust” means a trust that is:

(1) Established by a third party with the assets of the third

party to provide for the supplemental needs of a person who is

eligible for needs-based public assistance at or after the time of the

creation of the trust; and

(2) Exempt from the provisions of any law or regulation of

this State relating to the treatment of trusts for purposes of eligibility

for Medicaid.

Sec. 40. NRS 164.021 is hereby amended to read as follows:

164.021 1. When a revocable trust becomes irrevocable

because of the death of a settlor or by the express terms of the trust,

the trustee may, after the trust becomes irrevocable, provide notice

to any beneficiary of the irrevocable trust, any heir of the settlor or

to any other interested person.

2. The notice provided by the trustee must contain:

(a) The identity of the settlor of the trust and the date of

execution of the trust instrument;

(b) The name, mailing address and telephone number of any

trustee of the trust;

(c) Any provision of the trust instrument which pertains to the

beneficiary or notice that the heir or interested person is not a

beneficiary under the trust;

(d) Any information required to be included in the notice

expressly provided by the trust instrument; and

(e) A statement set forth in a separate paragraph, in 12-point

boldface type or an equivalent type which states: “You may not

bring an action to contest the trust more than 120 days from the date

this notice is [served upon] provided to you.”

3. The trustee shall [serve the] cause notice pursuant to this

section to be provided in accordance with the provisions of

NRS 155.010.

4. No person upon whom notice is [served] provided pursuant

to this section may bring an action to contest the validity of the trust

more than 120 days from the date the notice pursuant to this section

is provided, regardless of whether a petition under NRS 164.010 is

subsequently served upon the person [,] after the notice is provided,

unless the person proves that he or she [did] was not [receive actual]

provided notice [.] in accordance with this section.

Sec. 41. NRS 164.025 is hereby amended to read as follows:

164.025 1. [The] Regardless of the filing of a petition under

NRS 164.010, the trustee of a nontestamentary trust may after the

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death of the settlor of the trust cause to be published a notice in the

manner specified in paragraph (b) of subsection 1 of NRS 155.020

and mail a copy of the notice to known or readily ascertainable

creditors.

2. The notice must be in substantially the following form:

(a) For a claim against the settlor:

NOTICE TO CREDITORS

Notice is hereby given that the undersigned is the duly

appointed and qualified trustee of the ................ trust.

................, the settlor of that trust died on ................. A

creditor having a claim against the settlor must file a claim

with the undersigned at the address given below within 90

days after the first publication of this notice.

Dated ............................

....................................................

Trustee

....................................................

Address

(b) For a claim against the trust:

NOTICE TO CREDITORS

Notice is hereby given that the undersigned is the duly

appointed and qualified trustee of the ................ trust.

................, the settlor of that trust died on ................. A

creditor having a claim against the trust estate must file a

claim with the undersigned at the address given below within

90 days after the first publication of this notice.

Dated ............................

....................................................

Trustee

....................................................

Address

(c) For a claim against the settlor and the trust:

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NOTICE TO CREDITORS

Notice is hereby given that the undersigned is the duly

appointed and qualified trustee of the ................ trust.

................, the settlor of that trust died on ................. A

creditor having a claim against the settlor and against the

trust estate must file a claim with the undersigned at the

address given below within 90 days after the first

publication of this notice.

Dated ............................

....................................................

Trustee

....................................................

Address

3. [A] Except as otherwise provided in subsection 4, a person

having a claim, due or to become due, against a settlor or the trust,

as applicable, must file the claim with the trustee within 90 days

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

publication of the first notice to creditors. A claim filed within the

applicable period is presumed timely filed if it contains on the first

page of the claim a title stating it is a “Claim Pursuant to NRS

164.025” in a minimum 12-point bold type and it is mailed to the

trustee at the address set forth in the notice with a return receipt

or the creditor obtains written confirmation of receipt signed by

the trustee or trustee’s counsel. Any claim against a settlor or the

trust estate, as applicable, that is not timely filed [within that time]

is forever barred. After the expiration of the time to file a claim as

provided in this [section,] subsection or, if applicable, subsection 4,

the trustee may distribute the assets of the trust to its beneficiaries

without personal liability for any claim which has not been timely

filed with the trustee. A claim not complying with the requirements

of this subsection is rebuttably presumed to be untimely.

4. Notwithstanding the provisions of subsection 3, if the

existence of an additional creditor who was not known or readily

ascertainable at the time of the first publication of the notice to

creditors is discovered by the trustee before the last day that

creditors who were provided such notice may file a claim with the

trustee pursuant to subsection 3, the trustee shall immediately mail

a copy of the notice to the additional creditor, who must file a

claim with the trustee in accordance with the provisions of

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subsection 3 within the applicable time period set forth in

subsection 3 or 30 days from the date the trustee mailed such

subsequent notice to the creditor, whichever is later.

5. If the trustee knows or has reason to believe that the settlor

received public assistance during the lifetime of the settlor, the

trustee shall, whether or not the trustee gives notice to other

creditors, give notice within 30 days after the death to the

Department of Health and Human Services in the manner provided

in NRS 155.010. If notice to the Department is required by this

subsection but is not given, the trust estate and any assets transferred

to a beneficiary remain subject to the right of the Department to

recover public assistance received.

[5.] 6. If a claim is rejected by the trustee, in whole or in part,

the trustee must, within 10 days after the rejection, notify the

claimant of the rejection by written notice forwarded by registered

or certified mail to the mailing address of the claimant. The claimant

must bring suit in the proper court against the trustee within 60 days

after the notice is given, whether the claim is due or not, or the

claim is barred forever and the trustee may distribute the assets of

the trust to its beneficiaries without personal liability to any creditor

whose claim is barred forever.

[6.] 7. As used in this section, “nontestamentary trust” has the

meaning ascribed to it in NRS 163.0016.

Sec. 42. NRS 164.038 is hereby amended to read as follows:

164.038 1. Unless otherwise represented by counsel, a minor,

incapacitated person, unborn person or person whose identity or

location is unknown and not reasonably ascertainable may be

represented by another person who has a substantially similar

interest with respect to the question or dispute.

2. A person may only be represented by another person

pursuant to subsection 1 if there is no material conflict of interest

between the person and the representative with respect to the

question or dispute for which the person is being represented. If a

person is represented pursuant to subsection 1, the results of that

representation in the question or dispute will be binding on the

person.

3. A presumptive remainder beneficiary may represent and

bind a beneficiary with a contingent remainder for the same

purpose, in the same circumstance and to the same extent as an

ascertainable beneficiary may bind a minor, incapacitated person,

unborn person or person who cannot be ascertained.

4. A powerholder may represent and bind a person who is a

permissible appointee or taker in default of appointment.

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5. If a trust has a minor or incapacitated beneficiary who may

not be represented by another person pursuant to this section, [the] a

custodial parent or the guardian of the estate of the minor or

incapacitated beneficiary may represent the minor or incapacitated

beneficiary in any judicial proceeding or nonjudicial matter

pertaining to the trust. A minor or incapacitated beneficiary may

only be represented by a parent or guardian if there is no material

conflict of interest between the minor or incapacitated beneficiary

and the parent or guardian with respect to the question or dispute. If

a minor or incapacitated beneficiary is represented pursuant to this

subsection, the results of that representation will be binding on the

minor or incapacitated beneficiary. The representation of a minor or

incapacitated beneficiary pursuant to this subsection is binding on

an unborn person or a person who cannot be ascertained if:

(a) The unborn person or a person who cannot be ascertained

has an interest substantially similar to the minor or incapacitated

person; and

(b) There is no material conflict of interest between the unborn

person or a person who cannot be ascertained and the minor or

incapacitated person with respect to the question or dispute.

6. As used in this section:

(a) “Permissible appointee” has the meaning ascribed to it in

NRS 162B.065.

(b) “Powerholder” has the meaning ascribed to it in

NRS 162B.080.

(c) “Presumptive remainder beneficiary” means:

(1) A beneficiary who would receive income or principal of

the trust if the trust were to terminate as of that date, regardless of

the exercise of a power of appointment; or

(2) A beneficiary who, if the trust does not provide for

termination, would receive or be eligible to receive distributions of

income or principal of the trust if all beneficiaries of the trust who

were receiving or eligible to receive distributions were deceased.

(d) “Taker in default of appointment” has the meaning ascribed

to it in NRS 162B.095.

Sec. 43. Chapter 239A of NRS is hereby amended by adding

thereto the provisions set forth as sections 44 and 45 of this act.

Sec. 44. Upon presentation of a death certificate, affidavit of

death or other proof of death, a lender, trustee or assignee of an

encumbrance against real property shall provide the Director of

the Department of Health and Human Services or a public

administrator or a person employed or contracted with pursuant to

NRS 253.125, as applicable, with a statement which sets forth the

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identifying number and account balance of any encumbrance

against real property on which the name of the deceased person

appears. A lender, trustee or assignee may charge a reasonable

fee, not to exceed $2, to provide a public administrator or a person

employed or contracted with pursuant to NRS 253.125, as

applicable, with a statement pursuant to the provisions of this

section.

Sec. 45. Upon presentation of a death certificate, affidavit of

death or other proof of death, a financial institution shall provide

a public administrator or a person employed or contracted with

pursuant to NRS 253.125, as applicable, with access to a safe

deposit box rented in the sole name of the decedent, or jointly

owned with a predeceased person for whom proof of death has

been provided, for the purpose of the inspection and removal of

any will or instructions for disposition of the remains of the

decedent. The estate of the decedent is responsible for any costs

and expenses incurred by drilling or forcing open a safe deposit

box.

Sec. 46. NRS 440.250 is hereby amended to read as follows:

440.250 1. Not later than the fifth day of each month, deputy

county health officers shall file with the county health officer all

original birth and death certificates executed by them.

2. Within 5 days after receipt of the original death certificates,

the county health officer shall file with the public administrator or a

person employed or contracted with pursuant to NRS 253.125, as

applicable, a written list of the names , [and] social security numbers

and residential addresses of all deceased persons and the names of

their next of kin as those names appear on the certificates.

Sec. 47. 1. The amendatory provisions of section 4 of this

act apply to any power of attorney, will or other estate planning

document that is executed on or after January 1, 2020.

2. The amendatory provisions of section 33 of this act apply to

any trust created or amended before, on or after October 1, 2021.

20 ~~~~~ 21