Assembly Bill No. 517–Assemblymen Freeman, Gibbons,
Arberry, Giunchigliani, Williams and Parks
March 12, 1999
____________
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.
~
EXPLANATION – Matter in
bolded italics is new; matter between brackets
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 thereto1-2
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 restriction1-6
of his independent action.1-7
3. To restoration of his capacity for independent action as soon as1-8
possible.1-9
4. To humane treatment, with dignity and respect, and protection1-10
from abuse, neglect and exploitation.1-11
5. To remain as independent as possible, including a reasonable1-12
choice of place and standard of living, whether expressed before or after1-13
his incompetence or limited capacity was determined. A guardian shall1-14
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 be1-17
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 kind2-5
of guardianship, unless the court finds that he is unable to comprehend2-6
the notice.2-7
Sec. 3. If an adult ward or proposed adult ward is unable to retain2-8
legal counsel and requests the appointment of counsel, at any stage of a2-9
proceeding for guardianship and whether or not he lacks or appears to2-10
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 fees2-12
must be paid from the estate of the ward or proposed ward to the extent2-13
possible, and otherwise by the county.2-14
Sec. 4. 1. If a ward has attained the age of 60 years, the guardian2-15
shall retain assets not exceeding $1,500 in value for the anticipated2-16
expense of the ward’s funeral and the disposal of his remains. The2-17
amount so retained is exempt from all claims, including those of this2-18
state.2-19
2. The guardian may place assets so retained in a pooled account or2-20
trust. If the assets are invested in a savings account or other financial2-21
account, they are not subject to disposition as unclaimed property during2-22
the lifetime of the ward.2-23
3. Assets so retained may be disbursed for the ward’s funeral or the2-24
disposal of his remains without prior authorization of the court. An2-25
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: 159.019 "Incompetent"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: 159.022 A person is of "limited capacity" if he is able to make2-33
independently some but not all of the decisions necessary for his own care2-34
and the management of his property2-35
majority.2-36
Sec. 7. NRS 159.044 is hereby amended to read as follows: 159.044 1. Except as otherwise provided in NRS 127.045, a2-38
proposed ward, a governmental agency, a nonprofit corporation or any2-39
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 will3-5
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 is3-13
sought.3-14
(i) A general description and the probable value of the property of the3-15
proposed ward and any income to which he is entitled, if the petition is for3-16
the appointment of a guardian of the estate or a special guardian. If any3-17
money is paid or is payable to the proposed ward by the United States3-18
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 and3-22
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 to3-24
159.175, inclusive, necessary to enable the guardian to carry out the duties3-25
of the guardianship.3-26
(m) Whether the guardianship is sought as the result of an investigation3-27
of a report of abuse or neglect that is conducted pursuant to chapter 432B3-28
of NRS by an agency which provides protective services. As used in this3-29
paragraph, "agency which provides protective services" has the meaning3-30
ascribed to it in NRS 432B.030.3-31
Sec. 8. NRS 159.047 is hereby amended to read as follows: 159.047 1. Except as otherwise provided in NRS 159.0475, 159.0493-33
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 the3-35
hearing and directing the persons or institutions referred to in subsection 23-36
to appear and show cause why a guardian should not be appointed for the3-37
proposed ward.3-38
2. A citation issued under subsection 1 must be served:3-39
(a) If the proposed ward is an incompetent3-40
capacity:3-41
(1) Upon the spouse and adult children of the incompetent or person3-42
of limited capacity who are known to exist, or, if there are none, upon any3-43
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; and4-3
(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, custody4-7
or control of the minor; and4-8
(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: 159.052 1. A petitioner may request the court to appoint a temporary4-11
guardian. To support the request, the petitioner must set forth in a petition4-12
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 or4-15
physical harm or needs immediate medical attention; and4-16
(2) Lacks capacity to respond to the risk of loss or harm or to obtain4-17
the necessary medical attention; and4-18
(b) Facts which show that:4-19
(1) The petitioner has tried in good faith to notify the persons entitled4-20
to notice pursuant to NRS 159.047;4-21
(2) The proposed ward would be exposed to an immediate risk of4-22
financial loss or physical harm if the petitioner were to provide notice to4-23
the persons entitled to notice pursuant to NRS 159.047 before the court4-24
determines whether to appoint a temporary guardian4-25
(3) Giving notice to the persons entitled to notice pursuant to NRS4-26
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 unable4-29
to respond to a substantial and immediate risk of financial loss or physical4-30
harm or to a need for immediate medical attention; and4-31
(b) Is satisfied that the petitioner has tried in good faith to notify the4-32
persons entitled to notice pursuant to NRS 159.047 or that giving notice to4-33
those persons is not feasible under the circumstances, or determines that4-34
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 court4-37
shall limit the temporary guardian’s powers to those necessary to assist in4-38
the emergency.4-39
3. Except as otherwise provided in subsection 4, after the appointment4-40
of a temporary guardian, the petitioner shall4-41
attempt in good faith to notify the persons entitled to notice pursuant to4-42
NRS 159.047. If the petitioner fails to make such an effort, the court may4-43
terminate the temporary guardianship.5-1
4. If, before the appointment of a temporary guardian, the court5-2
determined that advance notice was not required pursuant to subparagraph5-3
(2) of paragraph (b) of subsection 1, the petitioner shall notify the persons5-4
entitled to notice pursuant to NRS 159.047 not later than5-5
after the appointment of the temporary guardian5-6
hours after he discovers the existence, identity and location of the5-7
persons entitled to notice pursuant to that section. If the petitioner fails to5-8
provide such notice, the court may terminate the temporary guardianship.5-9
5. Within 10 days after the appointment of a temporary guardian5-10
pursuant to subsection 2, the court shall hold a hearing to determine the5-11
need to extend the temporary guardianship. Except as otherwise provided5-12
in subsection 6, if the court finds by clear and convincing evidence that the5-13
proposed ward is unable to respond to a substantial and immediate risk of5-14
financial loss or physical harm or to a need for immediate medical5-15
attention, the court may extend the temporary guardianship until a general5-16
or special guardian is appointed, but not for more than 30 days. The court5-17
shall limit the temporary guardian’s powers to those necessary to assist in5-18
the emergency.5-19
6. The court may not extend a temporary guardianship pursuant to5-20
subsection 5 beyond the initial period of 10 days unless the petitioner5-21
demonstrates that:5-22
(a) The provisions of NRS 159.0475 have been satisfied; or5-23
(b) Notice by publication pursuant to N.R.C.P. 4(e) is currently being5-24
undertaken.5-25
Sec. 10. NRS 159.059 is hereby amended to read as follows: 159.059 Any qualified person or entity that the court finds suitable5-27
may serve as a guardian. A person is not qualified to serve as a guardian5-28
who5-29
5-30
1. Is an incompetent.5-31
2.5-32
3.5-33
4.5-34
the practice of law during the period of the suspension or disbarment.5-35
5.5-36
(a) Associated as a coguardian, a resident of this state or a banking5-37
corporation whose principal place of business is in this state; and5-38
(b) Caused the appointment to be filed in the guardianship proceeding.5-39
6. Has been judicially determined to have committed abuse, neglect5-40
or exploitation of a child, spouse, parent or other adult.6-1
Sec. 11. NRS 159.073 is hereby amended to read as follows: 159.073 Every guardian shall, before entering upon his duties as6-3
guardian and before letters of guardianship may issue, take and subscribe6-4
the official oath and file in the6-5
residence and post office address.6-6
letters of guardianship,6-7
6-8
the duties of guardian according to law .6-9
6-10
6-11
6-12
6-13
6-14
Sec. 12. NRS 159.079 is hereby amended to read as follows: 159.079 1. Except as otherwise ordered by the court, a guardian of6-16
the person has the care, custody and control of the person of the ward, and6-17
has the authority and, subject to subsection 2, shall perform the duties6-18
necessary for the proper care, maintenance, education and support of the6-19
ward, including6-20
(a) Supplying the ward with food, clothing, shelter and all incidental6-21
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)6-25
working age, seeing that the ward is properly trained and educated and that6-26
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 a6-28
guardian of the person, due regard6-29
the estate of the ward. A guardian of the person is not required to incur6-30
expenses on behalf of the ward except to the extent that the estate of the6-31
ward is sufficient to reimburse the guardian.6-32
6-33
person of any duty required by law to provide for the care, support and6-34
maintenance of any dependent.6-35
Sec. 13. NRS 159.0795 is hereby amended to read as follows: 159.0795 A special guardian shall exercise his supervisory authority6-37
over the ward in a manner which is least restrictive of the ward’s personal6-38
freedom consistent with the need for supervision and protection. The order6-39
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 of6-43
it.7-1
4. To determine the ward’s residence.7-2
5. To make decisions concerning the ward’s social environment or7-3
other social aspects of his life.7-4
6. Except as otherwise provided in NRS 159.0805, to consent to7-5
medical care and mental treatment.7-6
Sec. 14. NRS 159.0805 is hereby amended to read as follows: 159.0805 A guardian shall not consent to experimental medical ,7-8
biomedical or behavioral treatment , or sterilization of a ward , or to the7-9
ward’s participation in any biomedical or behavioral experiment, unless7-10
he is specifically empowered to do so by the court. The court may7-11
authorize experimental treatment or participation only if:7-12
1. It is of direct benefit to, and intended to preserve the life or prevent7-13
serious impairment to the mental or physical health of, the ward; or7-14
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: 159.085 1.7-17
within 60 days after the date of his appointment, or, if necessary, such7-18
further time as the court may allow, a guardian of the estate shall make and7-19
file in the guardianship proceeding a verified inventory of all the property7-20
of the ward which comes to his possession or knowledge.7-21
2.7-22
is included in the petition for appointment of a permanent guardian, a7-23
separate inventory need not be filed.7-24
3. If any property of the ward not mentioned in the inventory comes to7-25
the possession or knowledge of a guardian of the estate, he shall make and7-26
file in the7-27
within 30 days after the property comes to his possession or knowledge or7-28
include the property in his next accounting. The court may order which of7-29
the two methods the guardian shall follow.7-30
7-31
appraised as provided in NRS 144.020, 144.025, 144.030, 144.070 and7-32
144.090.7-33
Sec. 16. NRS 159.185 is hereby amended to read as follows: 159.185 1. The court may remove a guardian if the court determines7-35
that:7-36
(a) The guardian has become disqualified, mentally incompetent,7-37
unsuitable or otherwise incapable of exercising his authority and7-38
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 or7-41
by any lawful order of the court; or7-42
(d) The best interest of the ward will be served by the appointment of7-43
another person as guardian.8-1
2. Upon its own motion or upon a petition filed by a ward who is a8-2
minor 14 years of age or older, by any person for a ward who is an8-3
incompetent or a minor under 14 years of age, or by any other interested8-4
person, the court may make an order directing the issuance of a citation8-5
requiring the guardian to appear and show cause why he should not be8-6
removed. The citation shall require the guardian to appear and show cause8-7
within the applicable period of time required for appearance after service8-8
of summons, and shall be served and returned as summons is served and8-9
returned in a civil action.8-10
3. If an agency which provides protective services has investigated or8-11
is investigating a complaint of abuse or neglect of the person or8-12
exploitation of the estate of a ward, the court, upon the filing of a report8-13
or letter by the agency and without citation or hearing, may appoint a8-14
temporary successor guardian to serve during the investigation and until8-15
the superseded guardian resigns or the court determines whether he8-16
should be retained or removed. The temporary successor guardian has8-17
those powers and duties of a guardian which are necessary to enable him8-18
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 which8-20
provides protective services" has the meaning ascribed to it in NRS8-21
432B.030.8-22
Sec. 17. NRS 159.189 is hereby amended to read as follows: 159.1898-24
thereafter, the estate of a ward consists of personal property having a value8-25
not exceeding by more than8-26
unpaid expenses of administration of the guardianship estate and claims8-27
against the estate, the guardian of the estate, with prior approval of the8-28
court by order, may pay8-29
and deliver all the remaining personal property to such person as the court8-30
may designate in the order, to be held, invested or used as ordered by the8-31
court. The recipient of the property so delivered shall give a receipt8-32
therefor to the guardian. The receipt is a release and acquittance to the8-33
guardian as to the property so delivered. The guardian shall file in the8-34
8-35
the court showing8-36
released from his trust and his bond exonerated.8-37
Sec. 18. NRS 159.1905 is hereby amended to read as follows: 159.1905 A ward8-39
petition the court for the termination or modification of a guardianship.8-40
8-41
8-42
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 remaining9-7
property and the proposed disposition of that property.9-8
Sec. 19. NRS 159.191 is hereby amended to read as follows: 159.191 A guardianship is terminated:9-10
1. If for a minor, when9-11
according to the law of9-12
2. By the death of the ward;9-13
3. Upon the ward’s change of domicile to a place outside this state9-14
and the transfer of jurisdiction to the court having jurisdiction in the new9-15
domicile; or9-16
4. Upon order of the court, if the court determines that the9-17
guardianship no longer is necessary. If the guardianship is of the person9-18
and estate, the court may order the guardianship terminated as to the9-19
person, the estate or the person and estate.9-20
Sec. 20. NRS 159.201 is hereby amended to read as follows: 159.201 If at any time during the course of the9-22
proceedings it appears to the court that, after payment of all claims and9-23
expenses of the guardianship the value of the ward’s property does not9-24
exceed9-25
1. Authorize the guardian of the estate or special guardian who is9-26
authorized to manage the ward’s property to convert the property to cash9-27
9-28
without notice, as the court may direct. After the payment of all claims and9-29
the expenses of the guardianship, the guardian shall deposit9-30
money in savings accounts or invest it as provided in NRS 159.117, and9-31
hold the investment and all interest, issues, dividends and profits for the9-32
benefit of the ward. The court may dispense with annual accountings and9-33
all other proceedings required by this chapter .9-34
9-35
9-36
2. If the ward is a minor, terminate the guardianship of the estate and9-37
direct the guardian to deliver the ward’s property to the9-38
parent, guardian or custodian of the minor to hold, invest or use as the9-39
court may order.9-40
3. If the ward is in the custody and control of a facility for skilled9-41
nursing, terminate the guardianship of the estate and direct the guardian9-42
to deliver the ward’s money and property to the facility for the ward’s10-1
care and expenses. Upon the death of the ward, the guardian shall file a10-2
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 a10-5
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 that10-8
a person responsible for the management of the affairs of an older10-9
person has failed to apply the assets of the older person properly for his10-10
care, support or maintenance, the administrator may recover in the name10-11
of the division a civil penalty:10-12
(a) Of $250 for the first occurrence;10-13
(b) Of $500 for the second occurrence; and10-14
(c) Of $1,000 for the third or any subsequent occurrence.10-15
2. Any penalty recovered under this section must be applied by the10-16
division to programs of protective services for older persons.10-17
3. As used in this section, "exploitation" and "older person" have the10-18
meanings ascribed to them NRS 200.5092.~