Insolvent Probate Estate Claim-Payment Priority in Nevada
At a glance
| Statutory payment order | Nine ordered classes, from administration expenses to all other demands (NRS 147.195). |
|---|---|
| Administration costs | Class 1 expenses of administration (NRS 147.195(1)). |
| Funeral and last illness | Class 2 funeral expenses; class 3 last-illness expenses (NRS 147.195(2)–(3)). |
| Family and homestead allowances | Class 4 family allowance (NRS 147.195(4)). |
| Taxes and public claims | Class 5 federal-law preferences; class 6 Medicaid-benefit money owed to Nevada Health Authority (NRS 147.195(5)–(6)). |
| Secured claims | Class 8 mortgages by date, preferred only from mortgaged-property proceeds; unpaid balance joins other demands (NRS 147.195(8)). |
| Support and special debts | Class 7 up to $600 per employee for work in final 3 months; class 8 lifetime judgments by date (NRS 147.195(7)–(8)). |
| General claims | Class 9 all other demands, including a mortgage balance unpaid from collateral proceeds (NRS 147.195(8)–(9)). |
| Underfunded class | Express claim-amount allocation for insufficient class-7 wage funds; no other class formula stated in this section (NRS 147.195(7)). |
Requirements one by one
Special debts and collateral
Under § 147.195(7), the wage preference reaches only $600 for each employee's work or personal services in the three months before the employer's death. Section 147.195(8) orders lifetime judgments and mortgages by date, but limits a mortgage's preference to the mortgaged property's proceeds; an unpaid balance joins other estate demands.
What trips people up
A judgment obtained against the personal representative on a money claim merely establishes the claim: § 147.200(1), (3) gives it no payment priority or estate-property lien. Section 147.200(4) excludes mortgage-foreclosure judgments from that rule. The recent-wage class has an express claim-amount allocation if its funds run short; § 147.195 states no comparable formula for the other classes.
Common questions
Does the statute put funeral and last-illness bills in one class? No. Section 147.195(2)–(3) places funeral expenses in class 2 and last-illness expenses in class 3.
Where does Medicaid recovery fall? Section 147.195(6) places money owed to the Nevada Health Authority for Medicaid benefits in class 6, after debts with federal-law preference.
Statutes and sources
- Nev. Rev. Stat. §§ 147.195 and 147.200. Verbatim official text, section URLs, and access dates appear in the source fields above.
Source links
Every statute quoted above, linked, with the date we checked it.
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