Trust Administration: Nevada’s Clean Up Rule - The 90-Day Creditors' Notice
When someone passes away, their estate may go through probate, a legal process of settling debts and distributing assets, or their estate may be administered through a trust. In either instance, in Nevada, the 90-day creditors' notice is an essential step during estate administration to inform creditors of the deceased's death and give them an opportunity to claim any debts owed.
Here’s how it works:
Why It’s Necessary
The 90-day creditors' notice is required by Nevada law to protect both the estate and creditors. It ensures creditors have a fair chance to claim what they’re owed, and it allows the estate to settle debts before distributing assets to heirs or beneficiaries. If a creditor does not file a claim within 90-days of the start of the time period, they are foreclosed from being paid on their claim. This allows the estate to move forward with confidence that all debts are paid.Who Issues the Notice
The trustee, or personal representative is responsible for issuing the notice.How the Notice Is Given
The personal representative or trustee publishes the creditors' notice in a local newspaper for three consecutive weeks. This serves as public notification of the death and informs creditors to submit their claims. Additionally, known creditors—those the personal representative or trustee is aware of—must be notified directly via mail.The 90-Day Period
Once the notice is published, creditors have 90 days to file a claim against the estate. A claim must include the amount owed and any supporting documentation. Claims received after the 90-day window are typically barred, meaning they cannot be collected.Reviewing and Paying Claims
The personal representative or trustee reviews all claims submitted during the 90-day period. Valid debts, such as credit card balances, medical bills, or loans, are paid using estate funds. If the estate does not have enough money to cover all debts, Nevada law prioritizes payments based on the type of debt.Disputing Claims
If the personal representative or trustee believes a claim is invalid or inaccurate, they can dispute it. Disputed claims may need to be resolved in court.Moving Forward
After the 90-day period ends and all valid debts are paid, the personal representative or trustee can proceed with distributing the remaining assets to the beneficiaries.
The 90-day creditors' notice is a critical part of Nevada estate administration. It ensures debts are handled fairly and efficiently, protecting the estate from lingering liabilities. Personal representatives or trustee should follow this process carefully and may want to consult a trusted attorney to ensure compliance with Nevada law. Our team at Surratt Law Practice has the knowledge, experience and compassion to walk through this process, every step of the way.