In Nevada, a deed upon death that allows real property to pass to a beneficiary upon the death of the original owner is relatively easy to execute and it becomes effective upon execution and recording.
The revocation of a deed upon death is not difficult either, but the statutory requirements have to be followed.
The grantor, so the original real property owner, can revoke the deed upon death at any time during his or her lifetime. The deed upon death can be revoked either by executing a revocation document or by executing another deed upon death. Both documents have to be signed, notarized, and recorded.
When the deed upon death is executed by two or more joint tenants, the revocation is effective either when all joint tenants sign the revocation or when it is executed by the last surviving joint tenant. If the real property is owned by tenants in common and they all executed the deed upon death together, the revocation is effective with respect to the share of real property owned by each tenant in common who executed the revocation document.
Importantly, a deed upon death cannot be revoked by execution of a last will and testament.
On the other hand, the transfer of title to the real property after the grantor’s death is much more complicated, especially since the latest legislative updates were implemented.
First, the beneficiary needs to record a Death of Grantor Affidavit and a certified copy of the death certificate in the county recorder’s office where the real property is located.
Next, a Notice to Creditors must be executed by the beneficiary and mailed to: (1) the personal representative of the grantor’s estate, if known, (2) all known creditors, and (3) the Department of Health and Human Services (Medicaid). Additionally, the Notice to Creditors must be published in a newspaper of general circulation.
Any person or institution having a claim against the grantor of the grantor’s estate must file a claim with the beneficiary within ninety days of the mailing or the first publication of the Notice to Creditors. Claims not filed within the prescribed period are barred forever. Any filed claims must be appropriately accepted or rejected by the beneficiary. If the claim is rejected, the claimant may file suit to pursue the claim.
Further, within forty-five days of the Notice to Creditors being mailed to Medicaid, Medicaid must either provide a waiver of claim confirming that no Medicaid assistance was received by the grantor or, if the grantor had received assistance, Medicaid can impose a lien on the real property. Failure to provide notice to Medicaid results in the real property remaining subject to the Medicaid’s right to recover even after the transfer to the beneficiary.
Once the time for creditors to file their claims has run out, all the creditors are satisfied, if needed, and when the Medicaid waiver is received, the real property can be distributed pursuant to the terms of the deed upon death without any personal liability attaching to the beneficiary for the debts of the grantor.
Notably, a beneficiary may disclaim his or her interest in the real property by recording the disclaimer in the county recorder’s office where the real property is located.
The transfer of real property to a beneficiary via deed upon death can be costly and lengthy. Typically, passing the real property to a beneficiary via trust instrument is more efficient.