Disclaimer: This article is for general information only and is not legal advice. Consult a licensed Nevada attorney for guidance tailored to your situation.
Detailed Answer
When someone dies in Nevada, their estate enters probate, a court-supervised process to collect assets, pay debts and distribute property. The personal representative (also called the executor) manages the estate’s ongoing bills and administrative expenses.
1. Appointment of Personal Representative
The court officially appoints a personal representative after reviewing the decedent’s will or, if no will exists, following intestate rules. See NRS 147.015.
2. Notice to Creditors
Within two months of appointment, the representative must publish a Notice to Creditors in a local newspaper. This gives creditors a chance to file claims. See NRS 147.020.
3. Inventory and Appraisal of Assets
The representative inventories and, when required, appraises estate assets. This ensures accurate accounting before any payments. See NRS 147.155.
4. Managing Ongoing Bills and Expenses
- Open a dedicated estate bank account. Deposit funds from asset sales, rents or other income.
- Pay necessary administrative expenses such as utilities, mortgage, insurance and property maintenance to preserve estate value. Nevada law authorizes these payments before distributing assets. See NRS 147.055.
- After the creditor-claim period, pay approved debts and liens in the priority order set by NRS 147.050. Personal debts of the decedent rank below administrative expenses and family allowances.
- Keep detailed records of every transaction. The court and beneficiaries can request an accounting at any time.
5. Insolvent Estates
If debts exceed assets, the personal representative may seek court instruction on handling claims. In some cases, Nevada’s insolvency rules limit payments to available funds.
Helpful Hints
- Start an estate account right after appointment to separate personal and estate funds.
- Save all receipts and billing statements for the estate accounting.
- Track deadlines for creditor claims and tax filings.
- Maintain insurance coverage on real property until distribution.
- Consider bonding requirements—courts may require a bond to protect beneficiaries.
- Consult tax professionals for final income and estate tax returns.