Senate Bill No. 560--Committee on Human Resources and Facilities CHAPTER........ AN ACT relating to public assistance; enlarging the categories of assets from which public assistance may be recovered after the death of a recipient; requiring certain notices upon the death of a recipient; revising the provisions governing the requirements for county assistance to indigent persons; and providing other matters properly relating thereto. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 422 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act. Sec. 2. \"Undivided estate" means all assets included in the estate of a deceased recipient of assistance to the medically indigent and any other assets in or to which he had an interest or legal title at the time of his death, to the extent of that interest or title. The term includes assets passing by reason of joint tenancy, reserved life estate, survivorship or trust, and any of the decedent's separate property and his interest in community property that was transferred to a community spouse pursuant to NRS 123.259 or pursuant to an order of a district court under any other provision of law. \\Sec. 3. \1. The welfare division may, to the extent not prohibited by federal law, petition for the imposition of a lien pursuant to the provisions of section 8 of this act against real or personal property of a recipient of assistance to the medically indigent as follows: (a) The welfare division may obtain a lien against a recipient's property, both real or personal, before or after his death in the amount of assistance paid or to be paid on his behalf if the court determines that assistance was incorrectly paid for the recipient. (b) The welfare division may seek a lien against the real property of a recipient at any age before his death in the amount of assistance paid or to be paid for him if he is an inpatient in a nursing facility, intermediate care facility for the mentally retarded or other medical institution and the welfare division determines, after notice and opportunity for a hearing in accordance with its regulations, that he cannot reasonably be expected to be discharged and return home. 2. No lien may be placed on a recipient's home for assistance correctly paid if: (a) His spouse; (b) His child who is under 21 or blind or permanently and totally disabled as determined in accordance with 42 U.S.C. § 1382c; or (c) His brother or sister who is an owner or part owner of the home and who was residing in the home for at least 1 year immediately before the date the recipient was admitted to the medical institution, is lawfully residing in the home. 3. Upon the death of a recipient the welfare division may seek a lien upon his undivided estate as defined in section 2 of this act. 4. The state welfare administrator shall release a lien pursuant to this section: (a) Upon notice by the recipient or his representative to the administrator that the recipient has been discharged from the medical institution and has returned home; (b) If the lien was incorrectly determined; or (c) Upon satisfaction of the welfare division's claim. \\Sec. 4. NRS 422.001 is hereby amended to read as follows: 422.001 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 422.005 to 422.055, inclusive, \and section 2 of this act\\ have the meanings ascribed to them in those sections. Sec. 5. NRS 422.2935 is hereby amended to read as follows: 422.2935 1. Except as otherwise provided in this section, the welfare division [may,] \shall,\\ to the extent it is not prohibited by federal law and when circumstances allow: (a) Recover benefits correctly paid for assistance to the medically indigent from: (1) The \undivided\\ estate of the person who received those benefits; and (2) [The estate of the surviving spouse of the person who received those benefits.] \Any recipient of money or property from the undivided estate of the person who received those benefits.\\ (b) Recover from the recipient of assistance to the medically indigent or the person who signed the application for assistance to the medically indigent on behalf of the recipient an amount not to exceed the benefits incorrectly paid to the recipient if the person who signed the application: (1) Failed to report any required information to the welfare division which he knew at the time he signed the application; or (2) Failed within the period allowed by the welfare division to report any required information to the welfare division which he obtained after he filed the application. 2. The welfare division shall not recover benefits pursuant to paragraph (a) of subsection 1 \, except from a person who is neither a surviving spouse nor a child,\\ until after the death of the surviving spouse, if any, and only at a time when the person who received the benefits has no surviving child who is under 21 years of age or is blind or permanently and totally disabled. 3. Except as otherwise provided by federal law, if a transfer of real or personal property by a recipient of assistance to the medically indigent is made for less than fair market value, the welfare division may pursue any remedy available pursuant to chapter 112 of NRS with respect to the transfer. 4. The amount of assistance to the medically indigent paid to or on behalf of a person is a claim against the estate in any probate proceeding only at a time when there is no surviving spouse or surviving child who is under 21 years of age or is blind or permanently and totally disabled. 5. The administrator may elect not to file a claim against the estate of a recipient of assistance to the medically indigent or his spouse if he determines that the filing of the claim will cause an undue hardship for the spouse or other survivors of the recipient. The board shall adopt regulations defining the circumstances that constitute an undue hardship. 6. Any recovery of money obtained pursuant to this section must be applied first to the cost of recovering the money. Any remaining money must be divided among the Federal Government, the department and the county in the proportion that the amount of assistance each contributed to the recipient bears to the total amount of the assistance contributed. \7. An action to recover money owed to the department of human resources as a result of the payment of benefits for assistance to the medically indigent must be commenced within 6 months after the cause of action accrues. A cause of action accrues after all of the following events have occurred: (a) The death of the recipient of the assistance to the medically indigent; (b) The death of the surviving spouse of the recipient of the assistance to the medically indigent; (c) The death of all children of the recipient of the assistance to the medically indigent who are blind or permanently and totally disabled as determined in accordance with 42 U.S.C. § 1382c; and (d) The arrival of all other children of the recipient of the assistance to the medically indigent at the age of 21 years.\\ Sec. 5.1. NRS 428.015 is hereby amended to read as follows: 428.015 1. The board of county commissioners shall adopt an ordinance and any related policies which establish the \requirements and\\ standards of eligibility for medical and financial assistance to indigent persons. The ordinance and policies must specify the allowable income, assets and other resources or potential resources of persons eligible for assistance [.] \, and any other requirements applicable to an applicant for assistance.\\ The board of county commissioners shall file the ordinance and policies with the secretary of state within 30 days after adoption \.\\ [, but not later than July 1, 1988.] Any amendment to the ordinance or policies must be filed with the secretary of state within 30 days after adoption. 2. A county's standards of eligibility for medical assistance must not deny eligibility to a person living in a household which has a total monthly income of less than: (a) For one person living without another member of a household, $438. (b) For two persons, $588. (c) For three or more persons, $588 plus $150 for each person in the family in excess of two. For the purposes of this subsection, "income" includes the entire income of a household and the amount which a county projects a person or household is able to earn. "Household" is limited to a person and his spouse, parents, children, brothers and sisters residing with him. 3. A county's program of medical assistance to indigent persons must provide payment for: (a) Emergency medical care; and (b) All other medically necessary care rendered in a medical facility designated by the county. 4. As used in this section [, "emergency] \: (a) "Emergency\\ medical care" means any care for an urgent medical condition which is likely to result in serious and permanent bodily disability or death if the patient is transported to a medical facility designated by the county. \(b) "Medically necessary care" does not include any experimental or investigative medical care which is not covered by Medicaid or Medicare.\\ Sec. 5.3. NRS 428.030 is hereby amended to read as follows: 428.030 1. When any person meets the uniform standards of eligibility established by the board of county commissioners or by NRS 439B.310, if applicable, [then] \and complies with any requirements imposed pursuant to NRS 428.040,\\ he is entitled to receive such relief as is in accordance with the policies and standards established and approved by the board of county commissioners and within the limits of the money which may be lawfully appropriated pursuant to NRS 428.050, 428.285 and 450.425 for this purpose. 2. The board of county commissioners of the county of residence of indigent inpatients shall pay hospitals for the costs of treating those indigent inpatients and any nonresident indigent inpatients who fall sick in the county an amount which is not less than the payment required for providing the same treatment to patients pursuant to the state plan for assistance to the medically indigent, within the limits of money which may be lawfully appropriated pursuant to NRS 428.050, 428.285 and 450.425 for this purpose. 3. The board of county commissioners may: (a) Make contracts for the necessary maintenance of indigent persons; (b) Appoint such agents as the board deems necessary to oversee and provide the necessary maintenance of indigent persons; (c) Authorize the payment of cash grants directly to indigent persons for their necessary maintenance; or (d) Provide for the necessary maintenance of indigent persons by the exercise of the combination of one or more of the powers specified in paragraphs (a), (b) and (c). 4. A hospital may contract with the department of human resources to obtain the services of a state employee to be assigned to the hospital to evaluate the eligibility of patients applying for indigent status. Payment for those services must be made by the hospital. Sec. 5.5. NRS 428.040 is hereby amended to read as follows: 428.040 When an application is made by an indigent person to the board of county commissioners of any county for relief, the board of county commissioners shall require the indigent person to [provide] \: 1. Provide\\ the information necessary to determine his county of residence or nonresident status. \2. Provide the information necessary to determine his financial condition and eligibility for medical and financial assistance. 3. Cooperate fully in applying for any federal or state assistance for which he may be eligible.\\ Sec. 6. NRS 40.525 is hereby amended to read as follows: 40.525 1. Whenever title or an interest in real or personal property is affected by the death of any person, any other person who claims any interest in the real or personal property, if his interest is affected by the death of that person, \or the State of Nevada,\\ may file in the district court of any county in which any part of the real or personal property is situated a verified petition setting forth those facts and particularly describing the real or personal property, the interest of the petitioner [,] and the interest of the deceased therein. 2. The clerk shall set the petition for hearing by the court. Notice of hearing of the petition must be mailed, by certified mail \,\\ return receipt requested, postage prepaid, to the heirs at law of the deceased person at their places of business or residences, if known, and if not, by publication for at least 3 successive weeks in such newspaper as the court orders \.\\ [, failure] \The clerk shall send a copy of the notice of hearing or of the affidavit to the welfare division of the department of human resources by certified mail, return receipt requested, postage prepaid, if the state is not the petitioner, at the time notice is mailed to the heirs at law or the notice is published. Failure\\ on the part of any such heir at law to contest the petition precludes any such heir at law from thereafter contesting the validity of the joint interest or its creation or termination. 3. The court shall take evidence for or against the petition, and may render judgment thereon establishing the fact of the death and the termination of the interest of the deceased in the real or personal property described in the petition. 4. A certified copy of the decree may be recorded in the office of the recorder of each county in which any part of the real or personal property is situated. 5. As an alternative method of terminating the interest of the deceased person, whenever title or an interest in real or personal property held in joint tenancy or as community property with right of survivorship is affected by the death of a joint tenant or spouse, any person who has knowledge of the facts may file in the office of the county recorder in the county where the property is situated an affidavit meeting the requirements of NRS 111.365, accompanied by a certified copy of the death certificate of the deceased person. Sec. 7. Chapter 108 of NRS is hereby amended by adding thereto the provisions set forth as sections 8, 9 and 10 of this act. Sec. 8. \1. A petition to the district court for the imposition of a lien as described and limited in section 3 of this act to recover money owed to the department of human resources as a result of payment of benefits for assistance to the medically indigent must set forth: (a) The facts concerning the giving of assistance; (b) The name and address of the person who is receiving or who received the benefits for assistance to the medically indigent; (c) A description of the property, sufficient for identification, and its estimated value; (d) The names, ages, residences and relationship of all persons who are claiming an interest in the property or who are listed as having any interest in the property, so far as known to the petitioner; and (e) An itemized list of the amount owed to the department of human resources as a result of payment of benefits for assistance to the medically indigent. 2. No defect of form or in the statement of facts actually existing voids the petition for the lien. \\Sec. 9. \1. Petition for the imposition of a lien must be signed by or on behalf of the state welfare administrator or the attorney general and filed with the clerk of the court, who shall set the petition for hearing. 2. Notice of a petition for imposition of a lien must be given by registered or certified mail, postage prepaid, at least 10 days before the date set for hearing or other action by the court. Each such notice must be addressed to the intended recipient at his last address known to the administrator, receipt for delivery requested. The administrator shall cause the notice to be published, at least once a week for 3 successive weeks, in one newspaper published in the county, and if there is no newspaper published in the county, then in such mode as the court may determine, notifying all persons claiming any interest in the property of the filing of the petition, the object and the location, date and time of the hearing. 3. Notice of a petition for imposition of a lien must be given to: (a) Each person who has requested notice; (b) The person who is receiving or has received benefits for assistance to the medically indigent; (c) The legal guardian or representative of a person who is receiving or has received benefits for assistance to the medically indigent, if any; (d) Each executor, administrator or trustee of the estate of a decedent who received benefits for assistance to the medically indigent, if any; (e) The heirs of such a decedent known to the administrator; and (f) Each person who is claiming any interest in the property or who is listed as having any interest in the subject property, and must state the filing of the petition, the object, and the time set for hearing. 4. At the time appointed, or at any other time to which the hearing may be continued, upon proof being made by affidavit or otherwise to the satisfaction of the court that notice has been given as required by this chapter, the court shall proceed to hear the testimony in support of the petition. Each witness who appears and is sworn shall testify orally. 5. The court shall make findings as to the appropriateness of the lien and the amount of the lien. 6. At the time of the filing of the petition for imposition of a lien the administrator shall file a notice of pendency of the action in the manner provided in NRS 14.010. 7. Upon imposition of the lien by the court, the administrator shall serve the notice of lien upon the owner by certified or registered mail and file it with the office of the county recorder of each county where real property subject to the lien is located. 8. The notice of lien must contain: (a) The amount due; (b) The name of the owner of record of the property; and (c) A description of the property sufficient for identification. 9. If the amount due as stated in the notice of lien is reduced by a payment, the administrator shall amend the notice of lien, stating the amount then due, within 20 days after receiving the payment. \\Sec. 10. \The state welfare administrator may, to the extent not prohibited by 42 U.S.C. § 1396p(b), foreclose upon a lien for money owed to the department of human resources as a result of the payment of benefits for assistance to the medically indigent by action in the district court in the same manner as for foreclosure of any other lien. \\Sec. 11. NRS 111.365 is hereby amended to read as follows: 111.365 \1.\\ In the case of real property owned by two or more persons as joint tenants or as community property with right of survivorship, it is presumed that all title or interest in and to that real property of each of one or more deceased joint tenants or the deceased spouse has terminated, and vested solely in the surviving joint tenant or spouse or vested jointly in the surviving joint tenants, if there has been recorded in the office of the recorder of the county or counties in which the real property is situate an affidavit, subscribed and sworn to by a person who has knowledge of the [hereinafter required facts,] \facts required in this subsection,\\ which sets forth the following: [1.] \(a)\\ The family relationship, if any, of the affiant to each deceased joint tenant or the deceased spouse; [2.] \(b)\\ A description of the instrument or conveyance by which the joint tenancy or right of survivorship was created; [3.] \(c)\\ A description of the property subject to the joint tenancy or right of survivorship; and [4.] \(d)\\ The date and place of death of each deceased joint tenant or the deceased spouse. \2. The county recorder shall send a copy of the affidavit to the welfare division of the department of human resources by certified mail, return receipt requested, postage prepaid, within 3 days after the affidavit is recorded.\\ Sec. 12. NRS 136.100 is hereby amended to read as follows: 136.100 1. All petitions for the probate of a will and for the issuance of letters [shall] \must\\ be signed by the party petitioning, or the attorney for the petitioner, and filed with the clerk of the court, who shall set the petition for hearing. 2. Notice [shall] \must\\ be given as provided in NRS 155.020 to the heirs of the testator and the devisees and legatees named in the will [and] \, to\\ all persons named as executors who are not petitioning [, and shall] \and to the administrator of the welfare division of the department of human resources, and must\\ state the filing of the petition, the object, and the time for proving [such] \the\\ will. Sec. 13. NRS 139.100 is hereby amended to read as follows: 139.100 The clerk shall set the petition for hearing, and notice [shall] \must\\ be given to the heirs of the decedent named in the petition \and to the administrator of the welfare division of the department of human resources\\ as provided in NRS 155.020. The notice [shall] \must\\ state the filing of the petition, the object, and the time for hearing. Sec. 14. NRS 145.030 is hereby amended to read as follows: 145.030 Notice of a petition for the probate of a will and the issuance of letters testamentary or for letters of administration must be given as provided in NRS 155.010, and the notice to creditors \and to the administrator of the welfare division of the department of human resources\\ must be given as provided in NRS 155.020. Sec. 15. NRS 145.060 is hereby amended to read as follows: 145.060 1. Creditors of the estate must file their claims, due or to become due, with the clerk, within 60 days after the mailing, for those required to be mailed, or 60 days after the first publication of the notice to creditors pursuant to NRS 155.020, and within 10 days thereafter the executor or administrator shall act on the claims filed and present them in 3 days thereafter to the judge for his action. 2. Any claim which is not filed within the 60 days is barred forever, except that if it is made to appear, by the affidavit of the claimant or by other proof to the satisfaction of the court, that the claimant did not have notice as provided in NRS 155.020, the claim may be filed at any time before the filing of the final account. 3. Every claim which is filed as provided in this section, allowed by the executor or administrator, and approved by the judge, must then, and not until then, be ranked as an acknowledged debt of the estate and be paid in the course of administration, except that payment of small debts in advance may be made pursuant to subsection 2 of NRS 150.230. \4. If a claim filed by the welfare division of the department of human resources is rejected by the executor or administrator, the state welfare administrator or his designated representative may, within 20 days after receipt of the written notice of rejection, petition the district judge for summary determination of the claim. A petition for summary determination must be filed with the clerk of the court, who shall set the petition for hearing, and notice must be given for the period and in the manner required by NRS 155.010. Allowance of the claim by the judge is sufficient evidence of its correctness and it must be paid as if previously allowed by the executor or administrator.\\ Sec. 16. NRS 146.070 is hereby amended to read as follows: 146.070 1. When a person dies leaving an estate, the gross value of which after deducting any encumbrances does not exceed $25,000, and there is a surviving spouse or minor child or minor children of the deceased, the estate must not be administered upon, but the whole thereof, after directing such payments as may be deemed just, must be, by an order for that purpose, assigned and set apart for the support of the surviving spouse or minor children, or for the support of the minor child or minor children, if there is no surviving spouse. Even though there is a surviving spouse, the court may, after directing such payments, set aside the whole of the estate to the minor child or minor children, if it is in their best interests. 2. When there is no surviving spouse or minor child of the deceased and the gross value of a decedent's estate, after deducting any encumbrances, does not exceed $25,000, upon good cause shown therefor, the judge may order that the estate must not be administered upon but the whole thereof must be assigned and set apart: First: To the payment of funeral expenses, expenses of last illness, \money owed to the department of human resources as a result of payment of benefits for assistance to the medically indigent,\\ and creditors, if there are any; and Second: Any balance remaining to the claimant or claimants entitled thereto. 3. All proceedings taken under this section, whether or not the decedent left a will, must be originated by a verified petition containing: (a) A specific description of all of the decedent's property. (b) A list of all the liens, encumbrances of record at the date of his death. (c) An estimate of the value of the property. (d) A statement of the debts of the decedent so far as known to the petitioner. (e) The names, ages and residences of the decedent's heirs, devisees and legatees. The petition may include a prayer that if the court finds the gross value of the estate, less encumbrances, does not exceed $25,000, the estate be set aside as provided in this section. 4. The petitioner shall give notice of the petition and hearing in the manner provided in NRS 155.010 to the decedent's heirs, devisees and legatees [.] \and to the welfare division of the department of human resources.\\ The notice must include a statement that a prayer for setting aside the estate to the spouse, or minor child or minor children, as the case may be, is included in the petition. 5. No court or clerk's fees may be charged for the filing of any petition in, or order of court thereon, or for any certified copy of the petition or order in an estate not exceeding $1,000 in value. 6. If the court finds that the gross value of the estate, less encumbrances, does not exceed the sum of $25,000, the court may direct that the estate be distributed to the father or mother of any minor heir or legatee, with or without the filing of any bond, or may require that a general guardian be appointed and that the estate be distributed to the guardian, with or without bond as in the discretion of the court seems to be in the best interests of the minor. The court may direct the manner in which the money may be used for the benefit of the minor. Sec. 17. NRS 146.080 is hereby amended to read as follows: 146.080 1. When a decedent leaves no real property, nor interest therein nor lien thereon, in this state, and the gross value of the decedent's property in this state, over and above any amounts due to the decedent for services in the Armed Forces of the United States, does not exceed $10,000, the surviving spouse, the children, lawful issue of deceased children, the parent, the brother or sister of the decedent, or the guardian of the estate of any minor or insane or incompetent person bearing that relationship to the decedent, if that person has a right to succeed to the property of the decedent or is the sole beneficiary under the last will and testament of the decedent, \or the welfare division of the department of human resources,\\ may, 40 days after the death of \the\\ decedent, without procuring letters of administration or awaiting the probate of the will, collect any money due the decedent, receive the property of the decedent, and have any evidences of interest, indebtedness or right transferred to him upon furnishing the person, representative, corporation, officer or body owing the money, having custody of the property or acting as registrar or transfer agent of the evidences of interest, indebtedness or right, with an affidavit showing the right of the affiant or affiants to receive the money or property or to have the evidences transferred. 2. An affidavit made pursuant to this section must state: (a) The affiant's name and address, and that the affiant is entitled by law to succeed to the property claimed; (b) That the decedent was a resident of Nevada at the time of his death; (c) That the gross value of the decedent's property in this state, except amounts due to the decedent for services in the Armed Forces of the United States, does not exceed $10,000, and that the property does not include any real property nor interest therein nor lien thereon; (d) That at least 40 days have elapsed since the death of the decedent; (e) That no application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction; (f) That all debts of the decedent, including funeral and burial expenses [,] \and money owed to the department of human resources as a result of the payment of benefits for assistance to the medically indigent,\\ have been paid or provided for; (g) A description of the personal property and the portion claimed; (h) That the affiant has given written notice, by personal service or by certified mail, identifying his claim and describing the property claimed, to every person whose right to succeed to the decedent's property is equal or superior to that of the affiant, and that at least 10 days have elapsed since the notice was served or mailed; and (i) That the affiant is personally entitled \, or the department of human resources is entitled,\\ to full payment or delivery of the property claimed or is entitled to payment or delivery on behalf of and with the written authority of all other successors who have an interest in the property. 3. If the affiant: (a) Submits an affidavit which does not meet the requirements of subsection 2 or which contains statements which are not entirely true, any money or property he receives is subject to all debts of the decedent. (b) Fails to give notice to other successors as required by subsection 2, any money or property he receives is held by him in trust for all other successors who have an interest in the property. 4. A person who receives an affidavit containing the information required by subsection 2 is entitled to rely upon such information, and if he relies in good faith, he is immune from civil liability for actions based on that reliance. 5. Upon receiving proof of the death of the decedent and an affidavit containing the information required by this section: (a) A transfer agent of any security shall change the registered ownership of the security claimed from the decedent to the person claiming to succeed to ownership of that security. (b) A governmental agency required to issue certificates of ownership or registration to personal property shall issue a new certificate of ownership or registration to the person claiming to succeed to ownership of the property. 6. If any property of the estate not exceeding $10,000 is located in a state which requires an order of a court for the transfer of the property, or if it consists of stocks or bonds which must be transferred by an agent outside this state, any person qualified under the provisions of subsection 1 to have the stocks or bonds or other property transferred to him may do so by obtaining a court order directing the transfer. The person desiring the transfer must file a verified petition in a court of competent jurisdiction containing: (a) A specific description of all of the property of the decedent. (b) A list of all the liens and encumbrances of record at the date of the decedent's death. (c) An estimate of the value of the property of the decedent. (d) The names, ages and residences of the decedent's heirs and legatees. (e) A prayer requesting the court to issue an order directing the transfer of the stocks or bonds or other property if the court finds the gross value of the estate does not exceed $10,000. If the court finds that the gross value of the estate does not exceed $10,000 and the person requesting the transfer is entitled to it, the court may issue an order directing the transfer. Sec. 18. NRS 147.130 is hereby amended to read as follows: 147.130 1. When a claim is rejected by the executor or administrator or the district judge, in whole or in part, the holder must be immediately notified by the executor or administrator, and the holder must bring suit in the proper court against the executor or administrator within 60 days after the notice, \or file a timely petition for summary determination pursuant to subsection 2,\\ whether the claim is due or not, or the claim is forever barred. If the holder of a claim resides out of the county, he may be informed of the rejection of his claim by written notice forwarded to his post office address by registered or certified mail. 2. \If a claim filed by the welfare division of the department of human resources is rejected by the executor or administrator, the state welfare administrator or his designated representative may, with 20 days after receipt of the written notice of rejection, petition the district judge for summary determination of the claim. A petition for summary determination must be filed with the clerk of the court, who shall set the petition for hearing, and notice must be given for the period and in the manner required by NRS 155.010. Allowance of the claim by the judge is sufficient evidence of its correctness and it must be paid as if previously allowed by the executor or administrator. 3.\\ In any suit upon a claim rejected in whole or in part by the executor or administrator, if the executor or administrator resides out of the state, or has departed from the state, or cannot, after due diligence, be found within the state, or conceals himself to avoid the service of summons, the summons, together with a copy of the complaint, must be mailed directly to the last address given by the executor or administrator, and proof of the mailing must be filed with the county clerk of the county where the administration of the estate is pending. This service is the equivalent of personal service upon the executor or administrator, but the defendant has 30 days from the date of such service within which to answer. [3.] \4.\\ If the defendant defaults after such service, the default is sufficient grounds for his removal as executor or administrator by the court without notice. Upon petition and notice, in the manner provided for an application for letters of administration, an administrator or an administrator with the will annexed must be appointed by the court and, upon his qualification as such, letters of administration or letters of administration with the will annexed must be issued. Sec. 19. NRS 150.230 is hereby amended to read as follows: 150.230 1. The executor or administrator shall, as soon as he has sufficient funds in his hands, upon receipt of a sworn statement of the amount due and without any formal [processing of] \action upon\\ creditors' claims, pay the funeral expenses, the expenses of the last sickness, the allowance made to the family of the deceased, \money owed to the department of human resources as a result of payment of benefits for assistance to the medically indigent\\ and wage claims to the extent of $600 of each employee of \the\\ decedent for work done or personal services rendered within 3 months [prior to] \before\\ the death of the employer; but he may retain in his hands the necessary expenses of administration. 2. He is not obliged to pay any other debt or any legacy until the payment is ordered by the court. 3. He may, [prior to] \before\\ court approval or order, pay any of the decedent's debts amounting to $100 or less if: (a) Claims for payment thereof are properly filed in the proceedings; (b) [Such] \The\\ debts are justly due; and (c) The estate is solvent. In settling the account of the estate, the court shall allow any such payment if the conditions of paragraphs (a), (b) and (c) have been met; otherwise, the executor or administrator is personally liable to any person sustaining loss or damage as a result of such payment. 4. Funeral expenses and expenses of a last sickness [shall be deemed] \are\\ debts payable out of the estate of the deceased spouse and [shall] \must\\ not be charged to the community share of a surviving spouse, whether or not the surviving spouse is financially able to pay such expenses and whether or not the surviving spouse or any other person is also liable therefor. Sec. 20. NRS 155.020 is hereby amended to read as follows: 155.020 1. Notice of a petition for the probate of a will and the issuance of letters testamentary or for letters of administration and the notice to creditors must be given to: (a) The persons respectively entitled thereto, \including the administrator of the welfare division of the department of human resources,\\ by mail as provided in NRS 155.010; and (b) The public, including creditors whose names and addresses are not readily ascertainable, by publication on three dates of publication before the hearing, and if the newspaper is published more than once each week there must be at least 10 days from the first to last dates of publication, including both the first and last days. 2. Every publication required by this section must be made in a newspaper printed in the county where the proceedings are pending, but if there is not such a newspaper, then in one having general circulation in that county. 3. The notice of the hearing upon the petition to administer the estate must be in substantially the following form: NOTICE OF THE HEARING UPON THE PETITION TO ADMINISTER THE ESTATE Notice is hereby given that ................................ has filed in this court a petition for the probate of a will and for letters testamentary, or for letters of administration, of the estate of ................................, deceased, and a hearing has been set for the .......... day of ................, 19......, at .......... (a.m. or p.m.) at the courthouse of the above-entitled court. All persons interested in the estate are notified to appear and show cause why the petition should not be granted. Dated.................................................. 4. As soon as practicable after appointment, every executor or administrator shall, in addition to publishing the notice to creditors, mail a copy of the notice to those creditors whose names and addresses are readily ascertainable and who have not already filed a claim. The notice must be in substantially the following form: NOTICE TO CREDITORS Notice is hereby given that the undersigned has been appointed and qualified by the (giving the title of the court and the date of appointment) as executor or administrator (as the case may be) of the estate of ................................, deceased. All creditors having claims against the estate are required to file the claims with the clerk of the court within .......... (60 or 90) days after the mailing or the first publication (as the case may be) of this notice. Date.................................................. Sec. 21. NRS 164.025 is hereby amended to read as follows: 164.025 1. The trustee of a nontestamentary trust may after the death of the settlor of the trust cause to be published a notice in the manner specified in paragraph (b) of subsection 1 of NRS 155.020. 2. If notice is so published, it must be in substantially the following form: Notice to Creditors Notice is hereby given that the undersigned is the duly appointed and qualified trustee of the ................ trust. ................, the settlor of that trust died on ................. A creditor having a claim against the trust estate must file his claim with the undersigned at the address given below within 90 days after the first publication of this notice. Dated.................. .............................. Trustee .............................. Address 3. Any claim against the trust estate not filed within 90 days after the first publication of notice is forever barred. After 90 days from the first publication of the notice, the trustee may distribute the assets of the trust to its beneficiaries without personal liability to any creditor who has failed to file a claim with the trustee. \4. If the trustee knows or has reason to believe that the settlor received public assistance during his lifetime, the trustee shall, whether or not he gives notice to other creditors, give notice within 30 days after the death to the welfare division of the department of human resources by certified mail, return receipt requested, postage prepaid. If notice to the welfare division is required by this subsection but is not given, the trust estate and any assets transferred to a beneficiary remain subject to the right of the welfare division to recover public assistance received.\\ Sec. 22. Section 3 of this act applies only to property of a recipient of assistance to the medically indigent who receives assistance on or after October 1, 1995. -30-