Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When handling an estate in Nevada, an executor must follow the statutory claims process under NRS 147.080 and NRS 147.120. After the court issues Letters Testamentary, the executor publishes notice to creditors and sets deadlines for filing claims.
1. Identify and Analyze the Creditor’s Claim
Review the promissory note, loan agreement, and related disclosures. Look for excessive interest rates, hidden fees, or unfair terms that may violate Nevada’s consumer protection laws, such as NRS 598.092 (unfair or deceptive lending practices) and NRS 598.0999 (remedies for violations).
2. Assess Elder Abuse or Lack of Capacity
If the decedent was elderly and may have lacked capacity or been subject to undue influence, gather medical records, witness statements, and declarations. Demonstrating incapacity or undue influence supports defenses like unconscionability or fraudulent inducement.
3. File an Objection in Probate Court
Under NRS 147.160, the executor can serve and file a written objection to the claim. The objection should:
- Identify the specific statutory or contractual violations alleged.
- Cite supporting evidence (loan documents, communications, medical records).
- Request a contested-claims hearing to resolve the dispute.
4. Attend a Contested Claims Hearing
The court schedules a hearing where both parties present evidence. The executor argues that the loan is void or unenforceable due to predatory terms, statutory violations, or the decedent’s lack of capacity. If successful, the court will disallow or reduce the creditor’s claim.
Helpful Hints
- Act promptly: Nevada’s deadlines for filing and objecting to claims are strict.
- Document everything: Preserve original loan documents and all communications.
- Consult experts: Consider a forensic document analyst or geriatric assessor for capacity issues.
- Explore separate remedies: The estate may pursue a consumer-protection claim under NRS 598.
- Maintain clear records: Track all probate filings, notices, and court orders.