SB 221 is intended to improve the law relating to trust and estate issues with the following objectives: (a) to simplify the process of transferring assets at death, whether or not probate is required; (b) to clarify the rights of creditors as to nonprobate asset and trust assets; (c) to clarify exemptions from creditors’ claims that do apply; and (d) to improve and update our laws to make Nevada an ideal jurisdiction for probate and trust matters.
Some highlights of the Bill include Sections 73 and 177 which give additional strength to no-contest clauses in wills and trusts and clarify that with certain important exceptions, a beneficiary’s share can be reduced or eliminated if they violate the provisions that a settler or testator has set forth even if that conduct does not constitute a formal contest of the will or trust.
A major new addition to the probate code provides for the Independent Administration of Estates Act which expedites the probate process and reduces the administrative costs of probate by allowing a personal representative to act more independently, involving the probate court only when needed for disputes or significant issues. This Section should allow executors to conduct activity such as selling real estate without the additional court appearances, filing fees and attorney fees currently associated with selling a parcel of real property through the probate court.
Section 196 provides that when a trust authorizes or directs a trustee not to provide an accounting, a procedure exists where the trustee provides the account to one or more reviewers who will determine whether the beneficiary’s interest in the trust is being properly administered without revealing the details of the account to the beneficiary.