Q: Does an Executor need to file a public notice to creditors when a deceased person's liabilities are more than assets?

A: In most cases yes, but WHY would someone other than a creditor file to become executor if there were more debts than assets? You need to consult with a local probate attorney to insure you do this properly and ideally BEFORE you file anything with a court to insure you don't do anything you don't have to in the first place!

A: If an executor is filing for summary or general administration in Nevada the executor must publish a notice to creditors.

Sometimes it is not known when the Decedent dies whether or not their assets will ultimately prove to be worth more or less than their liabilities. Assets can fluctuate in value and liabilities may be contested and compromised for a smaller amount.

The attorneys fee and executor fees are priority debts of the estate so the executor and attorney can paid if there are any assets even if there are none left over for the heirs. Thus, if it is not known what the total assets and liabilities will turn out to be there may be some sense in doing the probate.

Finally, in Nevada, since 2011 people who receive property upon the death of another person, whether or not that property comes to them thru probate or outside of probate (for example, thru a joint tenant dying or thru a payable on death financial account), are liable for the debts of the dead person up to the amount received from the dead person. So, to answer the question posed by the first lawyer to answer this question, if Son receives $200,000 from Dad outside of probate and Dad's probate estate has $50,000 of assets and $75,000 of debts, and Son wants to play it safe, Son would do the probate to pay off as much of Dad's debts as possible, rather than just walking away.