How to Handle Debts and Creditor Claims in Nevada
When someone dies, they may leave behind property and other assets. It’s also typical for the estate to be left with debts, liens, and other creditor claims. These claims must be dealt with before dividing up any assets or property. So, creditors will need to be discovered and notified of the death of the debtor.
In Clark County, the Nevada Eighth Judicial District Court handles probate and estate administration. The court requires you to publish a notice to creditors in a newspaper. This notice must also be mailed to the companies and individuals that have known claims against the estate.
Timeline to consider for debt and creditor claims
The following is an outline of the timeline for dealing with debt and creditor claims:
- Within 120 days of appointment, the executor must file an estate inventory with the court.
- Within 10 days after filing the inventory, a copy of the inventory must be mailed to all heirs or beneficiaries.
- Amended inventories must be filed within 20 days of discovering new assets or debts.
- A Notice to Creditors must be published in a newspaper and mailed to all known creditors.
- Depending on the type of probate, creditors have 60 or 90 days in which to respond to a Notice to Creditors.
- After receiving the response from the claimant, the estate’s executor or administrator has 15 days to allow or reject each claim.
Discovering a creditor after the Notice of Claims is published
If a creditor was not known when the Notice to Creditors was first published, but is discovered before the time expires for filing claims, the creditor must be mailed a notice that informs the creditor of the appropriate time frame for filing a claim. The filing deadline is 30 days after the notice is mailed to the newly discovered creditor or the original expiration date (60 or 90 days after the initial notice), whichever is later.
Choosing the right law firm help you handle debts and other creditor claims
It’s essential to have a law firm familiar with Nevada probate and estate administration to help ensure you can meet the court’s requirements for handling debts and other creditor claims. If an estate’s debts are handled improperly, the executor could be personally liable to the creditor. An experienced Nevada estate planning law firm can help you handle creditor claims, and negotiate with creditors and get the best outcome for the estate.
Reach out to a knowledgeable Las Vegas trusts and estates attorney
At LKP, we provide our clients with better service because we focus only on trusts and estates. Our lawyers can help you navigate the Nevada probate and estate administration process with confidence. Contact our knowledgeable attorneys online or call us today at (702) 333-1711.