[Rev. 11/21/2013 9:49:36 AM--2013]

CHAPTER 154 - ESCHEATS

PROPERTY ESCHEATING TO STATE

NRS 154.010           When estates escheat; escheated estates must be used for educational purposes.

NRS 154.015           Payments or deliveries by personal representative to State Treasurer: Filing of receipt or certificate; release of liability of personal representative.

NRS 154.020           Information filed by Attorney General: Contents.

NRS 154.030           Citation: Issuance; publication.

NRS 154.040           Receiver: Appointment on petition of Attorney General after filing of information; bond.

NRS 154.060           Claimants may appear and plead to information.

NRS 154.070           Judgment and costs.

NRS 154.080           Sale of real property after judgment: Procedure.

NRS 154.100           Appeal from judgment.

NRS 154.105           Sale of escheated property; deposit of proceeds.

NRS 154.110           Duties of Director of State Department of Conservation and Natural Resources.

NRS 154.115           Duties of State Controller.

NRS 154.120           Proceedings for recovery of property.

NRS 154.130           Person furnishing information entitled to percentage of value of recovered property.

NRS 154.140           Deposit of money from escheated estates.

DISPOSITION OF REAL PROPERTY AFTER ESCHEAT

NRS 154.150           Petition to acquire title to escheated property.

NRS 154.160           Petition to be accompanied by purchase price and fees.

NRS 154.170           Notice of sale: Posting, publication and contents; rejection of bids.

NRS 154.180           Costs borne by purchaser.

_________

 

PROPERTY ESCHEATING TO STATE

      NRS 154.010  When estates escheat; escheated estates must be used for educational purposes.  An estate escheats to and is vested in the State of Nevada for educational purposes if any person dies or has died, within this State, seised of any real or personal estate, and leaving no heirs, representatives or devisees capable of inheriting or holding the estate, and in all cases where there is no owner of the estate capable of holding it. Any balance remaining in a retired employee’s or beneficiary’s individual account under the Public Employees’ Retirement System or the Judicial Retirement System established pursuant to chapter 1A of NRS is not an estate within the meaning of this chapter.

      [311:107:1941; 1931 NCL § 9882.311]—(NRS A 1977, 1598; 1999, 2354; 2001 Special Session, 93)

      NRS 154.015  Payments or deliveries by personal representative to State Treasurer: Filing of receipt or certificate; release of liability of personal representative.  If a personal representative, on order of the court, pays over or delivers to the State Treasurer property which has become escheatable to the State, the receipt or certificate of the State Treasurer evidencing the payment or delivery must be filed with the clerk of the district court in the county in which the estate is being administered or is located. Upon filing of the receipt or certificate, the personal representative is released from all further liability relating to the property.

      (Added to NRS by 1999, 2353)

      NRS 154.020  Information filed by Attorney General: Contents.

      1.  If the Attorney General is informed, or has reason to believe, that any real or personal property has become escheatable to this State for the reasons specified in NRS 154.010, or that any such property has, for any other reason, become escheatable, the Attorney General shall file an information on behalf of the State in the district court of the county where the property, or any part thereof, is located.

      2.  The information must set forth:

      (a) A description of the property.

      (b) The name of the person last lawfully seised.

      (c) The name of the persons holding, possessing or claiming the property, if known.

      (d) The facts and circumstances giving rise to the claim for escheatment.

      3.  The information must allege that the State of Nevada has by law the right to the property.

      [Part 312:107:1941; A 1951, 19]—(NRS A 1999, 2354)

      NRS 154.030  Citation: Issuance; publication.

      1.  Upon the filing of the information, the court shall order that a citation be issued to the person or persons alleged in the information to hold, possess or claim the property, requiring them to appear and show cause why the property should not vest in the State of Nevada. Unless the court otherwise orders, the citation must be made returnable at least 20 days after its service.

      2.  The court may also, if deemed advisable, order the citation to be published in a newspaper published in the county where the administration is pending, if any, and, if none, then in some newspaper in this State.

      [Part 312:107:1941; A 1951, 19]—(NRS A 1999, 2354)

      NRS 154.040  Receiver: Appointment on petition of Attorney General after filing of information; bond.

      1.  After the filing of an information as provided in NRS 154.020, and upon petition of the Attorney General, either before or after answer, upon notice to the person or persons holding, possessing or claiming the property, if known, the court may, on sufficient cause therefor being shown, appoint a receiver to take charge of the real estate or personal property, other than money, mentioned in the information, and receive the rents and profits of the property until the title of the property is finally settled.

      2.  The receiver shall, before entering upon his or her duties, execute a bond to the State of Nevada in a sum to be fixed by the court, with sureties to be approved by the court, conditioned to perform faithfully the duties of the trust and to account fully to the person finally determined to be entitled to the property. That person may maintain an action on the bond for any default or damage.

      [316:107:1941; 1931 NCL § 9882.316]—(NRS A 1999, 2354)

      NRS 154.060  Claimants may appear and plead to information.

      1.  All persons named in the information may appear and plead to the proceedings, and may traverse or deny the facts stated in the information and the title of the State to the estate at any time on or before the return day of the citation.

      2.  Any other person claiming an interest in the property may appear and be made a defendant, and plead as stated in subsection 1 by petition for that purpose filed within the time allowed for pleading.

      3.  If any person appears and pleads as stated in subsections 1 and 2, denying the title claimed by the State, or traverses any material fact set forth in the information, or issue or issues of fact to be made up, the matter must proceed as other civil actions on issues of fact.

      4.  A survey may be ordered, as in other civil actions, if the boundary is called into question.

      [Part 313:107:1941; 1931 NCL § 9882.313]—(NRS A 1999, 2355)

      NRS 154.070  Judgment and costs.  After the issues are tried, if it shall appear from the facts that the State has a good title to the estate mentioned in the information, or any part thereof, or if no defense be made by anyone, judgment shall be rendered that the State be seised thereof, and recover costs of suit against the defendants, if any appear.

      [Part 313:107:1941; 1931 NCL § 9882.313]

      NRS 154.080  Sale of real property after judgment: Procedure.

      1.  Upon any judgment entered by a court of competent jurisdiction, escheating real property to the State, on petition of the Attorney General, or on petition of a personal representative of the estate, the court shall, or the court may upon its own motion, enter an order that the real property be sold by the sheriff of the county where the property is situated, at public sale, after giving notice of the time and place of sale as is provided in cases of sale of property under execution.

      2.  The sheriff shall, within 10 days after the sale, submit a report thereof to the court. Upon the hearing of the report, the court may examine the report and any witnesses, and if the proceedings were unfair, or the sum bid is disproportionate to the value of the property sold, or if it appears that a sum exceeding the bid by at least 5 percent may be obtained, the court may vacate the sale and direct another sale to be conducted in all respects as if no previous sale had taken place.

      3.  If an offer of 5 percent more in amount than that named in the report is made to the court in writing by a responsible person, the court may accept that offer and confirm the sale, or order a new sale.

      4.  If it appears to the court that the sale was legally made and fairly conducted, and that the sum bid is not disproportionate to the value of the property sold, and that a sum in excess of 5 percent more than the bid cannot be obtained, or if an increased bid was accepted by the court, the court shall enter an order confirming the sale and directing the sheriff, in the name of the State, to execute to the purchaser a conveyance of the property sold. The conveyance vests in the purchaser all the right and title of the State therein.

      5.  The sheriff shall, out of the proceeds of the sale, pay the costs of the proceedings incurred on behalf of the State, including the expenses of making the sale, and also an attorney’s fee, if additional counsel was employed in the proceedings, to be fixed by the court. The sheriff shall deposit the remaining proceeds in the State Treasury for credit to the Fund for Escheated Estates.

      [Part 313:107:1941; 1931 NCL § 9882.313]—(NRS A 1983, 1091; 1999, 2355)

      NRS 154.100  Appeal from judgment.  As in civil cases, the Attorney General, in behalf of the State, and any party who has appeared in any proceedings mentioned in NRS 154.060, has the right to appeal from any judgment rendered in the proceedings.

      [314:107:1941; 1931 NCL § 9882.314]

      NRS 154.105  Sale of escheated property; deposit of proceeds.

      1.  The State Treasurer may sell at a public sale property in the custody of the State Treasurer which has escheated to the State. The State Treasurer shall cause public notice of the sale to be given. Any money received from the sale must be deposited in the State Treasury for credit to the Fund for Escheated Estates.

      2.  The personal representative of an estate shall sell any property and transmit the proceeds of the sale to the State Treasurer for credit to the Fund for Escheated Estates unless the State Treasurer authorizes transmittal of the property.

      (Added to NRS by 1983, 1091; A 1999, 2356)

      NRS 154.110  Duties of Director of State Department of Conservation and Natural Resources.  The Director of the State Department of Conservation and Natural Resources shall keep a true record or description of all real property vested in the State by escheat. All real property must be described by legal subdivision, by metes and bounds sufficiently accurate to identify the ground on an approved township plat from the Bureau of Land Management or, if within an approved townsite, by reference to the lot, block, and tract or subdivision.

      [1:55:1941; 1931 NCL § 7530.01] + [Part 315:107:1941; A 1951, 27]—(NRS A 1957, 654; 1983, 1092; 1991, 206)

      NRS 154.115  Duties of State Controller.  The State Controller shall:

      1.  Keep a true account of all money paid into the State Treasury for credit to the Fund for Escheated Estates and of all real and personal property vested in the State by escheat.

      2.  Account separately for the proportionate share of interest earned on the money in the Fund for Escheated Estates and credit an amount equal to that interest to the Fund.

      3.  Transfer:

      (a) All of the interest earned on the money in the Fund for Escheated Estates;

      (b) All income of any kind which is earned on any real or personal property vested in the State by escheat; and

      (c) All estates which are not claimed within the period fixed by NRS 154.120, to the State Permanent School Fund at least annually.

      (Added to NRS by 1983, 1091)

      NRS 154.120  Proceedings for recovery of property.

      1.  If, within 6 years after any judgment escheating property to the State, any person claims any money or property vested in the State by the judgment, the person may file a petition in the district court of Carson City, stating the nature of the claim, with an appropriate request for the relief demanded.

      2.  A copy of the petition must be served upon the Attorney General before or at the time of filing. Within 20 days after service, the Attorney General shall appear in the proceeding and plead or answer the petition. If, after examining all the facts, the Attorney General is convinced that the State has no legal defense against the petition, the Attorney General may, with the consent of the court, confess judgment on behalf of the State.

      3.  If judgment is not confessed, the petition is at issue on the 20th day after its filing, and may be heard by the court on that day, or at such future day as the court may order.

      4.  Upon the hearing, the court shall examine the claim and hear the allegations and evidence. If the court finds that the person is entitled to any money, it shall, by judgment, order the State Controller to draw a warrant in favor of the claimant upon the State Treasurer for the sum specified in the order, but without interest, income or cost of any kind to the state. A certified copy of the judgment and order directing the State Controller to draw the warrant for money is a sufficient voucher to do so.

      5.  If any property is the subject of the trial, and the court finds the claimant entitled to it, the court shall enter an order accordingly. The order divests the interests of the State in or to the property, but no interest, income or other cost of any kind may be taxed against the State.

      6.  If any property has been sold as provided in this chapter after the judgment of escheat, the petitioner is entitled to the proceeds of the sale less the cost of the sale without any interest, income or other cost to the State of any kind, in lieu of the property, and the court shall enter an order accordingly.

      7.  All persons, except minors and incapacitated persons, who fail to appear and file their petitions within the time limited in subsection 1 are barred forever. Minors and incapacitated persons may appear and file their petitions at any time within 5 years after their respective disabilities are removed.

      [Part 6:55:1941; A 1951, 26] + [Part 315:107:1941; A 1951, 27]—(NRS A 1969, 315; 1983, 1092; 1999, 2356)

      NRS 154.130  Person furnishing information entitled to percentage of value of recovered property.  Any person furnishing original information of any property escheatable to the State of Nevada, with the necessary evidence to sustain the information in that behalf, to the court of the county where the property is located, and to the Attorney General, shall be entitled to receive, upon the final recovery of the property, 5 percent of the value of the property so recovered; provided:

      1.  That the amount so received by the person furnishing the information shall not in the aggregate exceed the sum of $20,000 in any one case; and

      2.  That one person only shall be entitled to compensation for such service.

      [317:107:1941; A 1951, 19]

      NRS 154.140  Deposit of money from escheated estates.  All money received by the State from escheated estates must be deposited in the State Treasury for credit to the Fund for Escheated Estates which is hereby created as a trust fund.

      [318:107:1941; 1931 NCL § 9882.318]—(NRS A 1959, 23; 1983, 1093)

DISPOSITION OF REAL PROPERTY AFTER ESCHEAT

      NRS 154.150  Petition to acquire title to escheated property.

      1.  A person desiring to acquire title to any individual item or real property which has escheated to the State must proceed by petition to the Director of the State Department of Conservation and Natural Resources on forms obtainable at the office of the Director and in the manner described in NRS 154.150 to 154.180, inclusive.

      2.  A petition for unimproved real property outside of approved townsites may not be accepted for a parcel of land less than the smallest legal subdivision (40 acres) unless the area in its entirety is less than 40 acres. In such a case, that portion of the subdivision must be described and disposed of on one petition unless, in the discretion of the Director of the State Department of Conservation and Natural Resources, it is found that the remaining portion could be disposed of within a reasonable length of time, and would not become an isolated tract. The Director may then accept an application for a portion of the tract, if a survey is made and a plat submitted on tracing cloth, 24 inches by 32 inches, on which is set forth an accurate description of the property by metes and bounds, with at least one corner of the property tied to a point on the United States public land surveys.

      [2:55:1941; 1931 NCL § 7530.02]—(NRS A 1957, 654; 1999, 2357)

      NRS 154.160  Petition to be accompanied by purchase price and fees.  The petition must be accompanied by:

      1.  The purchase price in the amount of the petitioner’s offer for the real property desired.

      2.  A sufficient sum to cover the cost of advertising.

      3.  A fee of $5.

      [3:55:1941; 1931 NCL § 7530.03]—(NRS A 1999, 2357)

      NRS 154.170  Notice of sale: Posting, publication and contents; rejection of bids.

      1.  The Director of the State Department of Conservation and Natural Resources shall issue a receipt to the petitioner for the amount deposited in his or her trust and shall without any unnecessary delay cause notice of the petition to be given in the following manner:

      (a) By posting one of the notices in a conspicuous place in the office of the Director of the State Department of Conservation and Natural Resources.

      (b) By posting one of the notices at a conspicuous place at the property.

      (c) By publishing a notice in a newspaper in the county in which the real property is located at least once each week for 4 consecutive weeks prior to the date of sale.

      2.  The notice must contain:

      (a) The name of the deceased owner in which was vested the title before death, if known.

      (b) A description of the property as contained in the petition.

      (c) The amount of the offer contained in the petition.

      (d) A statement that the property will be sold to the highest bidder, specifying the time and place of the sale and that the transaction must be handled in legal tender of the United States or a certified check.

      3.  The Director of the State Department of Conservation and Natural Resources may reject any or all bids.

      [4:55:1941; 1931 NCL § 7530.04]—(NRS A 1999, 2357)

      NRS 154.180  Costs borne by purchaser.  The person to whom the title passes must pay the cost of advertising and the petition fee. When the title passes to a person other than the person who made the petition, the original petitioner must be reimbursed all moneys deposited by him or her.

      [5:55:1941; 1931 NCL § 7530.05]—(NRS A 1999, 2358)