Assembly Bill No. 517–Assemblymen Freeman, Gibbons,
Arberry, Giunchigliani, Williams and Parks

March 12, 1999

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Referred to Committee on Judiciary

 

SUMMARY—Revises provisions for guardianship of adults and provides for recovery if fiduciary abuses authority. (BDR 13-1359)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to adult persons; revising provisions for their guardianship; providing civil penalties for exploitation of older persons; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 159 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2, 3 and 4 of this act.

1-3 Sec. 2. An adult ward is entitled, insofar as his condition permits:

1-4 1. To an annual review of any report or plan for his guardianship.

1-5 2. To review, upon application to the court, of the need for restriction

1-6 of his independent action.

1-7 3. To restoration of his capacity for independent action as soon as

1-8 possible.

1-9 4. To humane treatment, with dignity and respect, and protection

1-10 from abuse, neglect and exploitation.

1-11 5. To remain as independent as possible, including a reasonable

1-12 choice of place and standard of living, whether expressed before or after

1-13 his incompetence or limited capacity was determined. A guardian shall

1-14 give effect to any estate planning done by the ward while competent,

1-15 insofar as possible.

1-16 6. To prudent financial management of his property and to be

1-17 informed upon request how his property is managed.

1-18 7. To appropriate services and rehabilitation.

2-1 8. To access to the court and legal counsel.

2-2 9. To receive visitors and communicate with others.

2-3 10. To privacy.

2-4 11. To notice of any proceeding to determine his capacity or the kind

2-5 of guardianship, unless the court finds that he is unable to comprehend

2-6 the notice.

2-7 Sec. 3. If an adult ward or proposed adult ward is unable to retain

2-8 legal counsel and requests the appointment of counsel, at any stage of a

2-9 proceeding for guardianship and whether or not he lacks or appears to

2-10 lack capacity, the court shall, at or before the time of the next hearing,

2-11 appoint a public or private attorney to represent him. The attorney’s fees

2-12 must be paid from the estate of the ward or proposed ward to the extent

2-13 possible, and otherwise by the county.

2-14 Sec. 4. 1. If a ward has attained the age of 60 years, the guardian

2-15 shall retain assets not exceeding $1,500 in value for the anticipated

2-16 expense of the ward’s funeral and the disposal of his remains. The

2-17 amount so retained is exempt from all claims, including those of this

2-18 state.

2-19 2. The guardian may place assets so retained in a pooled account or

2-20 trust. If the assets are invested in a savings account or other financial

2-21 account, they are not subject to disposition as unclaimed property during

2-22 the lifetime of the ward.

2-23 3. Assets so retained may be disbursed for the ward’s funeral or the

2-24 disposal of his remains without prior authorization of the court. An

2-25 amount not so disbursed becomes part of the ward’s estate.

2-26 Sec. 5. NRS 159.019 is hereby amended to read as follows:

2-27 159.019 "Incompetent" [includes any] means an adult person who, by

2-28 reason of mental illness, mental deficiency, advanced age, disease,

2-29 weakness of mind or any other cause, is unable, without assistance,

2-30 properly to manage and take care of himself or his property.

2-31 Sec. 6. NRS 159.022 is hereby amended to read as follows:

2-32 159.022 A person is of "limited capacity" if he is able to make

2-33 independently some but not all of the decisions necessary for his own care

2-34 and the management of his property [.] and has attained the age of

2-35 majority.

2-36 Sec. 7. NRS 159.044 is hereby amended to read as follows:

2-37 159.044 1. Except as otherwise provided in NRS 127.045, a

2-38 proposed ward, a governmental agency, a nonprofit corporation or any

2-39 concerned person may petition the court for the appointment of a guardian.

3-1 2. The petition must state:

3-2 (a) The name and address of the petitioner.

3-3 (b) The name, age and address of the proposed ward. If he is a minor,

3-4 the date on which he will attain the age of majority and whether he will

3-5 need guardianship after attaining the age of majority.

3-6 (c) Whether the proposed ward is a resident or nonresident of this state.

3-7 (d) The names and addresses, so far as they are known to the petitioner,

3-8 of the relatives of the proposed ward within the second degree.

3-9 (e) The name and address of the proposed guardian.

3-10 (f) That the proposed guardian has never been convicted of a felony.

3-11 (g) A summary of the reasons why a guardian is needed.

3-12 (h) Whether the appointment of a general or a special guardian is

3-13 sought.

3-14 (i) A general description and the probable value of the property of the

3-15 proposed ward and any income to which he is entitled, if the petition is for

3-16 the appointment of a guardian of the estate or a special guardian. If any

3-17 money is paid or is payable to the proposed ward by the United States

3-18 through the Department of Veterans Affairs, the petition must so state.

3-19 (j) The name and address of any person or institution having the care,

3-20 custody or control of the proposed ward.

3-21 (k) The relationship, if any, of the petitioner to the proposed ward and

3-22 the interest, if any, of the petitioner in the appointment.

3-23 (l) Requests for any of the specific powers set forth in NRS 159.117 to

3-24 159.175, inclusive, necessary to enable the guardian to carry out the duties

3-25 of the guardianship.

3-26 (m) Whether the guardianship is sought as the result of an investigation

3-27 of a report of abuse or neglect that is conducted pursuant to chapter 432B

3-28 of NRS by an agency which provides protective services. As used in this

3-29 paragraph, "agency which provides protective services" has the meaning

3-30 ascribed to it in NRS 432B.030.

3-31 Sec. 8. NRS 159.047 is hereby amended to read as follows:

3-32 159.047 1. Except as otherwise provided in NRS 159.0475, 159.049

3-33 and 159.052, the court, upon the filing of a petition under NRS 159.044,

3-34 shall direct the clerk to issue a citation setting forth a time and place for the

3-35 hearing and directing the persons or institutions referred to in subsection 2

3-36 to appear and show cause why a guardian should not be appointed for the

3-37 proposed ward.

3-38 2. A citation issued under subsection 1 must be served:

3-39 (a) If the proposed ward is an incompetent [:] or a person of limited

3-40 capacity:

3-41 (1) Upon the spouse and adult children of the incompetent or person

3-42 of limited capacity who are known to exist, or, if there are none, upon any

3-43 parent, brother or sister of the incompetent or person of limited capacity;

4-1 (2) Upon any person or officer of an institution having the care,

4-2 custody or control of the incompetent or person of limited capacity; and

4-3 (3) Upon the incompetent or person of limited capacity.

4-4 (b) If the proposed ward is a minor:

4-5 (1) Upon the parents of the minor;

4-6 (2) Upon any person or officer of an institution having care, custody

4-7 or control of the minor; and

4-8 (3) If the minor is 14 years of age or older, upon the minor.

4-9 Sec. 9. NRS 159.052 is hereby amended to read as follows:

4-10 159.052 1. A petitioner may request the court to appoint a temporary

4-11 guardian. To support the request, the petitioner must set forth in a petition

4-12 and present to the court under oath:

4-13 (a) Facts which show that the proposed ward:

4-14 (1) Faces a substantial and immediate risk of financial loss or

4-15 physical harm or needs immediate medical attention; and

4-16 (2) Lacks capacity to respond to the risk of loss or harm or to obtain

4-17 the necessary medical attention; and

4-18 (b) Facts which show that:

4-19 (1) The petitioner has tried in good faith to notify the persons entitled

4-20 to notice pursuant to NRS 159.047; [or]

4-21 (2) The proposed ward would be exposed to an immediate risk of

4-22 financial loss or physical harm if the petitioner were to provide notice to

4-23 the persons entitled to notice pursuant to NRS 159.047 before the court

4-24 determines whether to appoint a temporary guardian [.] ; or

4-25 (3) Giving notice to the persons entitled to notice pursuant to NRS

4-26 159.047 is not feasible under the circumstances.

4-27 2. If the court:

4-28 (a) Finds reasonable cause to believe that the proposed ward is unable

4-29 to respond to a substantial and immediate risk of financial loss or physical

4-30 harm or to a need for immediate medical attention; and

4-31 (b) Is satisfied that the petitioner has tried in good faith to notify the

4-32 persons entitled to notice pursuant to NRS 159.047 or that giving notice to

4-33 those persons is not feasible under the circumstances, or determines that

4-34 such notice is not required pursuant to subparagraph (2) of paragraph (b)

4-35 of subsection 1,

4-36 the court may appoint a temporary guardian to serve for 10 days. The court

4-37 shall limit the temporary guardian’s powers to those necessary to assist in

4-38 the emergency.

4-39 3. Except as otherwise provided in subsection 4, after the appointment

4-40 of a temporary guardian, the petitioner shall [make a good faith effort]

4-41 attempt in good faith to notify the persons entitled to notice pursuant to

4-42 NRS 159.047. If the petitioner fails to make such an effort, the court may

4-43 terminate the temporary guardianship.

5-1 4. If, before the appointment of a temporary guardian, the court

5-2 determined that advance notice was not required pursuant to subparagraph

5-3 (2) of paragraph (b) of subsection 1, the petitioner shall notify the persons

5-4 entitled to notice pursuant to NRS 159.047 not later than [24] 48 hours

5-5 after the appointment of the temporary guardian [.] or not later than 48

5-6 hours after he discovers the existence, identity and location of the

5-7 persons entitled to notice pursuant to that section. If the petitioner fails to

5-8 provide such notice, the court may terminate the temporary guardianship.

5-9 5. Within 10 days after the appointment of a temporary guardian

5-10 pursuant to subsection 2, the court shall hold a hearing to determine the

5-11 need to extend the temporary guardianship. Except as otherwise provided

5-12 in subsection 6, if the court finds by clear and convincing evidence that the

5-13 proposed ward is unable to respond to a substantial and immediate risk of

5-14 financial loss or physical harm or to a need for immediate medical

5-15 attention, the court may extend the temporary guardianship until a general

5-16 or special guardian is appointed, but not for more than 30 days. The court

5-17 shall limit the temporary guardian’s powers to those necessary to assist in

5-18 the emergency.

5-19 6. The court may not extend a temporary guardianship pursuant to

5-20 subsection 5 beyond the initial period of 10 days unless the petitioner

5-21 demonstrates that:

5-22 (a) The provisions of NRS 159.0475 have been satisfied; or

5-23 (b) Notice by publication pursuant to N.R.C.P. 4(e) is currently being

5-24 undertaken.

5-25 Sec. 10. NRS 159.059 is hereby amended to read as follows:

5-26 159.059 Any qualified person or entity that the court finds suitable

5-27 may serve as a guardian. A person is not qualified to serve as a guardian

5-28 who [is:

5-29 1. An] :

5-30 1. Is an incompetent.

5-31 2. [A] Is a minor.

5-32 3. [A person who has] Has been convicted of a felony.

5-33 4. [A person] Has been suspended for misconduct or disbarred from

5-34 the practice of law during the period of the suspension or disbarment.

5-35 5. [A] Is a nonresident of this state [who] and has not:

5-36 (a) Associated as a coguardian, a resident of this state or a banking

5-37 corporation whose principal place of business is in this state; and

5-38 (b) Caused the appointment to be filed in the guardianship proceeding.

5-39 6. Has been judicially determined to have committed abuse, neglect

5-40 or exploitation of a child, spouse, parent or other adult.

6-1 Sec. 11. NRS 159.073 is hereby amended to read as follows:

6-2 159.073 Every guardian shall, before entering upon his duties as

6-3 guardian and before letters of guardianship may issue, take and subscribe

6-4 the official oath and file in the [guardianship] proceeding his name,

6-5 residence and post office address. [Such] The oath, to be endorsed on the

6-6 letters of guardianship, [shall state that:

6-7 1. The guardian] must state that he will well and faithfully perform

6-8 the duties of guardian according to law . [;

6-9 2. All matters stated in any petition or paper filed with the court are

6-10 true of his own knowledge, except as to matters stated on information and

6-11 belief; and

6-12 3. As to matters stated on information and belief, he believes them to

6-13 be true.]

6-14 Sec. 12. NRS 159.079 is hereby amended to read as follows:

6-15 159.079 1. Except as otherwise ordered by the court, a guardian of

6-16 the person has the care, custody and control of the person of the ward, and

6-17 has the authority and, subject to subsection 2, shall perform the duties

6-18 necessary for the proper care, maintenance, education and support of the

6-19 ward, including [but not limited to] the following:

6-20 (a) Supplying the ward with food, clothing, shelter and all incidental

6-21 necessaries.

6-22 (b) Authorizing medical, surgical, dental, psychiatric, psychological,

6-23 hygienic or other remedial care and treatment for the ward.

6-24 (c) [Seeing] If the ward is a minor or a person of limited capacity of

6-25 working age, seeing that the ward is properly trained and educated and that

6-26 he has the opportunity to learn a trade, occupation or profession.

6-27 2. In the performance of the duties enumerated in subsection 1 by a

6-28 guardian of the person, due regard [shall] must be given to the extent of

6-29 the estate of the ward. A guardian of the person is not required to incur

6-30 expenses on behalf of the ward except to the extent that the estate of the

6-31 ward is sufficient to reimburse the guardian. [Nothing contained in this

6-32 section shall be deemed to] This section does not relieve a parent or other

6-33 person of any duty required by law to provide for the care, support and

6-34 maintenance of any dependent.

6-35 Sec. 13. NRS 159.0795 is hereby amended to read as follows:

6-36 159.0795 A special guardian shall exercise his supervisory authority

6-37 over the ward in a manner which is least restrictive of the ward’s personal

6-38 freedom consistent with the need for supervision and protection. The order

6-39 appointing a special guardian may delegate to him the right:

6-40 1. To apply for governmental benefits on behalf of the ward.

6-41 2. To contract on behalf of the ward.

6-42 3. To manage the ward’s property and make gifts or dispositions of

6-43 it.

7-1 4. To determine the ward’s residence.

7-2 5. To make decisions concerning the ward’s social environment or

7-3 other social aspects of his life.

7-4 6. Except as otherwise provided in NRS 159.0805, to consent to

7-5 medical care and mental treatment.

7-6 Sec. 14. NRS 159.0805 is hereby amended to read as follows:

7-7 159.0805 A guardian shall not consent to experimental medical ,

7-8 biomedical or behavioral treatment , or sterilization of a ward , or to the

7-9 ward’s participation in any biomedical or behavioral experiment, unless

7-10 he is specifically empowered to do so by the court. The court may

7-11 authorize experimental treatment or participation only if:

7-12 1. It is of direct benefit to, and intended to preserve the life or prevent

7-13 serious impairment to the mental or physical health of, the ward; or

7-14 2. It is intended to assist the ward to develop or regain his abilities.

7-15 Sec. 15. NRS 159.085 is hereby amended to read as follows:

7-16 159.085 1. [Within] Except as otherwise provided in subsection 2,

7-17 within 60 days after the date of his appointment, or, if necessary, such

7-18 further time as the court may allow, a guardian of the estate shall make and

7-19 file in the guardianship proceeding a verified inventory of all the property

7-20 of the ward which comes to his possession or knowledge.

7-21 2. [Whenever] If a complete inventory of the proposed ward’s estate

7-22 is included in the petition for appointment of a permanent guardian, a

7-23 separate inventory need not be filed.

7-24 3. If any property of the ward not mentioned in the inventory comes to

7-25 the possession or knowledge of a guardian of the estate, he shall make and

7-26 file in the [guardianship] proceeding a verified supplemental inventory

7-27 within 30 days after the property comes to his possession or knowledge or

7-28 include the property in his next accounting. The court may order which of

7-29 the two methods the guardian shall follow.

7-30 [3.] 4. The court may order all or any part of the property of the ward

7-31 appraised as provided in NRS 144.020, 144.025, 144.030, 144.070 and

7-32 144.090.

7-33 Sec. 16. NRS 159.185 is hereby amended to read as follows:

7-34 159.185 1. The court may remove a guardian if the court determines

7-35 that:

7-36 (a) The guardian has become disqualified, mentally incompetent,

7-37 unsuitable or otherwise incapable of exercising his authority and

7-38 performing his duties as provided by law;

7-39 (b) The guardian of the estate has mismanaged the estate of the ward;

7-40 (c) The guardian has failed to perform any duty as provided by law or

7-41 by any lawful order of the court; or

7-42 (d) The best interest of the ward will be served by the appointment of

7-43 another person as guardian.

8-1 2. Upon its own motion or upon a petition filed by a ward who is a

8-2 minor 14 years of age or older, by any person for a ward who is an

8-3 incompetent or a minor under 14 years of age, or by any other interested

8-4 person, the court may make an order directing the issuance of a citation

8-5 requiring the guardian to appear and show cause why he should not be

8-6 removed. The citation shall require the guardian to appear and show cause

8-7 within the applicable period of time required for appearance after service

8-8 of summons, and shall be served and returned as summons is served and

8-9 returned in a civil action.

8-10 3. If an agency which provides protective services has investigated or

8-11 is investigating a complaint of abuse or neglect of the person or

8-12 exploitation of the estate of a ward, the court, upon the filing of a report

8-13 or letter by the agency and without citation or hearing, may appoint a

8-14 temporary successor guardian to serve during the investigation and until

8-15 the superseded guardian resigns or the court determines whether he

8-16 should be retained or removed. The temporary successor guardian has

8-17 those powers and duties of a guardian which are necessary to enable him

8-18 to protect the assets of the ward and to provide for the ward’s care,

8-19 maintenance and support. As used in this subsection, "agency which

8-20 provides protective services" has the meaning ascribed to it in NRS

8-21 432B.030.

8-22 Sec. 17. NRS 159.189 is hereby amended to read as follows:

8-23 159.189 [Where,] If, at the time of the appointment of the guardian or

8-24 thereafter, the estate of a ward consists of personal property having a value

8-25 not exceeding by more than [$1,000] $5,000 the aggregate amount of

8-26 unpaid expenses of administration of the guardianship estate and claims

8-27 against the estate, the guardian of the estate, with prior approval of the

8-28 court by order, may pay [such] those expenses and claims from the estate

8-29 and deliver all the remaining personal property to such person as the court

8-30 may designate in the order, to be held, invested or used as ordered by the

8-31 court. The recipient of the property so delivered shall give a receipt

8-32 therefor to the guardian. The receipt is a release and acquittance to the

8-33 guardian as to the property so delivered. The guardian shall file in the

8-34 [guardianship] proceeding proper receipts or other evidence satisfactory to

8-35 the court showing [such] the delivery, and the guardian [shall be] is

8-36 released from his trust and his bond exonerated.

8-37 Sec. 18. NRS 159.1905 is hereby amended to read as follows:

8-38 159.1905 A ward [or other] , the guardian or another person may

8-39 petition the court for the termination or modification of a guardianship.

8-40 [Upon the filing of the petition, the court may appoint an attorney to

8-41 represent the ward if he is unable to retain one and the court determines

8-42 that the appointment is necessary to protect his interests.] The petition

8-43 must state or contain:

9-1 1. The name and address of the petitioner.

9-2 2. The name, age and address of the ward, if he is not the petitioner,

9-3 or the date of death if the ward is deceased.

9-4 3. The name and address of the guardian, if he is not the petitioner.

9-5 4. The reason for termination or modification.

9-6 5. A general description and the value of the ward’s remaining

9-7 property and the proposed disposition of that property.

9-8 Sec. 19. NRS 159.191 is hereby amended to read as follows:

9-9 159.191 A guardianship is terminated:

9-10 1. If for a minor, when [the minor] he reaches the age of majority

9-11 according to the law of [such minor’s] his domicile;

9-12 2. By the death of the ward; [or]

9-13 3. Upon the ward’s change of domicile to a place outside this state

9-14 and the transfer of jurisdiction to the court having jurisdiction in the new

9-15 domicile; or

9-16 4. Upon order of the court, if the court determines that the

9-17 guardianship no longer is necessary. If the guardianship is of the person

9-18 and estate, the court may order the guardianship terminated as to the

9-19 person, the estate or the person and estate.

9-20 Sec. 20. NRS 159.201 is hereby amended to read as follows:

9-21 159.201 If at any time during the course of the [guardianship]

9-22 proceedings it appears to the court that, after payment of all claims and

9-23 expenses of the guardianship the value of the ward’s property does not

9-24 exceed [$3,000,] $5,000, the court may:

9-25 1. Authorize the guardian of the estate or special guardian who is

9-26 authorized to manage the ward’s property to convert the property to cash

9-27 [or marketable stocks and bonds] and sell any of the property, with or

9-28 without notice, as the court may direct. After the payment of all claims and

9-29 the expenses of the guardianship, the guardian shall deposit [such cash] the

9-30 money in savings accounts or invest it as provided in NRS 159.117, and

9-31 hold the investment and all interest, issues, dividends and profits for the

9-32 benefit of the ward. The court may dispense with annual accountings and

9-33 all other proceedings required by this chapter . [if the investment fund is

9-34 held intact to be distributed to the ward upon removal of his legal

9-35 disability.]

9-36 2. If the ward is a minor, terminate the guardianship of the estate and

9-37 direct the guardian to deliver the ward’s property to the [father or mother]

9-38 parent, guardian or custodian of the minor to hold, invest or use as the

9-39 court may order.

9-40 3. If the ward is in the custody and control of a facility for skilled

9-41 nursing, terminate the guardianship of the estate and direct the guardian

9-42 to deliver the ward’s money and property to the facility for the ward’s

10-1 care and expenses. Upon the death of the ward, the guardian shall file a

10-2 petition to terminate the guardianship and the court, without a hearing,

10-3 shall release the guardian from his trust and his bond is exonerated.

10-4 Sec. 21. Chapter 427A of NRS is hereby amended by adding thereto a

10-5 new section to read as follows:

10-6 1. If a report made pursuant to NRS 200.5091 to 200.50995,

10-7 inclusive, is confirmed as showing exploitation of an older person or that

10-8 a person responsible for the management of the affairs of an older

10-9 person has failed to apply the assets of the older person properly for his

10-10 care, support or maintenance, the administrator may recover in the name

10-11 of the division a civil penalty:

10-12 (a) Of $250 for the first occurrence;

10-13 (b) Of $500 for the second occurrence; and

10-14 (c) Of $1,000 for the third or any subsequent occurrence.

10-15 2. Any penalty recovered under this section must be applied by the

10-16 division to programs of protective services for older persons.

10-17 3. As used in this section, "exploitation" and "older person" have the

10-18 meanings ascribed to them NRS 200.5092.

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