Existing law authorizes a person to create a deed that transfers his or her real property to a beneficiary or multiple beneficiaries pursuant to a deed that becomes effective upon the person's death and refers to such a deed as a deed upon death. (NRS 111.661, 111.669) Under existing law, upon the death of the last grantor of a deed upon death, a declaration of the value of the real property being transferred and a copy of the death certificate must be attached to a Death of Grantor Affidavit and recorded in the office of the county recorder in which the deed upon death was recorded. (NRS 111.699) Existing law exempts from taxes on the transfer of real property any conveyance of real property by a deed upon death. (NRS 375.090) Section 1 of this bill provides that upon the recording of the Death of Grantor Affidavit in the office of the county recorder upon the death of the grantor, the conveyance of real property is also exempt from taxes imposed on the transfer of real property. Sections 3 and 6 of this bill provide that this exemption applies to any Death of Grantor Affidavit recorded in the office of a county recorder on or after the passage and approval of this bill. Under existing law, if the probate estate of the grantor of a deed upon death is insufficient to satisfy certain claims or allowances against the estate, the estate is authorized to enforce the liability for the claim or allowance against the property transferred pursuant to the deed upon death. Existing law requires a proceeding to enforce this liability to be commenced not later than 18 months after the death of the grantor. (NRS 111.689) Sections 2 and 4 of this bill remove this limitation and establish a procedure for claims to be made against property transferred pursuant to a deed upon death if the grantor of the deed upon death dies on or after July 1, 2021. Under section 2, the beneficiary or beneficiaries under a deed upon death are required to provide certain notice of the death of the grantor of the deed upon death, including to, among others, the Department of Health and Human Services, and a person or entity who has a claim against the grantor or his or her probate estate is required to file the claim with the beneficiary or beneficiaries within 90 days after the notice is provided. If a claim is not filed within 90 days after the notice is provided, any claim against the grantor or his or her probate estate can no longer be made against the property transferred pursuant to the deed upon death, and the beneficiary or beneficiaries under the deed upon death are authorized to sell or distribute the property without personal liability for any claim which was not timely filed if the beneficiary or beneficiaries have received a waiver of claim after providing the written notice to the Department of Health and Human Services. If the beneficiary or beneficiaries under a deed upon death reject, in whole or in part, any claim that is timely filed, the beneficiary or beneficiaries are required to notify the claimant and the claimant is authorized to bring a suit in the court with jurisdiction against the beneficiary or beneficiaries but such suit must be brought within 30 days after the beneficiary or beneficiaries provided notice of the rejection of the claim. Finally, section 2: (1) establishes a procedure for the beneficiary or beneficiaries under a deed upon death to provide notice to the Department of Health and Human Services; (2) provides that the property transferred pursuant to such a deed upon death remains subject to any claim by the Department to recover public assistance provided to the grantor; and (3) provides that a person dealing with a beneficiary of a deed upon death has the same rights and protections as the person would have if the beneficiary had been named as a distributee of the property in an order for distribution of the grantor's estate that had become final if the person acted in good faith and for valuable consideration and a Death of Grantor Affidavit was recorded by the county recorder.

Statutes affected:
As Introduced: 375.090, 111.689
Reprint 1: 375.090, 111.689
As Enrolled: 375.090, 111.689