2005 Nevada Revised Statutes - Chapter 163 — Trusts

CHAPTER 163 - TRUSTS

GENERAL PROVISIONS

NRS 163.001 Definitions.

NRS 163.0011 Electronicrecord defined.

NRS 163.0013 Electronicsignature defined.

NRS 163.0015 Electronictrust defined.

NRS 163.0017 Recorddefined.

NRS 163.0019 Terms:Writing or written.

CREATION AND VALIDITY OF TRUSTS

NRS 163.002 Creation:Methods.

NRS 163.003 Creation:Requirements.

NRS 163.004 Creation:Purpose.

NRS 163.005 Creation:Consideration.

NRS 163.006 Creation:Beneficiary.

NRS 163.007 Validityof trust providing for one or more successor beneficiaries.

NRS 163.0075 Validityof trust providing for care of one or more animals.

NRS 163.008 Validityof trust created in relation to real property; recordation.

NRS 163.009 Oraltrust of personal property.

NRS 163.0095 Electronictrust.

GENERAL UNIFORM ACT

NRS 163.010 Shorttitle.

NRS 163.020 Definitions.

NRS 163.023 Powersof trustee.

NRS 163.027 Distributionof property or money of trust: Powers of trustee; manner; consent of affectedbeneficiaries required for distribution without proration under certaincircumstances.

NRS 163.030 Loanof money held in trust.

NRS 163.040 Corporatetrustee may deposit with self certain money held in trust.

NRS 163.050 Trusteebuying from or selling to self or affiliate.

NRS 163.060 Trusteeselling from one trust to self as trustee of another trust.

NRS 163.070 Purchaseby corporate trustee of its own stocks, bonds or other securities for trustprohibited unless specifically authorized.

NRS 163.080 Votingstock.

NRS 163.090 Holdingstock in name of nominee.

NRS 163.100 Powersof trustee attached to office.

NRS 163.110 Powersof cotrustees: Exercisable by majority if more than two cotrustees; liabilityof dissenting cotrustee; unanimous action required if only two cotrustees;petition of interested person.

NRS 163.115 Breachof trust by trustee: Maintenance of proceeding; permissible purposes formaintenance of proceeding; nonexclusivity of remedies; method of commencingproceeding.

NRS 163.120 Claimsbased on certain contracts or obligations: Assertion against trust; entry ofjudgment; notice; intervention; personal liability of trustee; significance ofuse of certain terms.

NRS 163.130 Exonerationor reimbursement of trustee for tort.

NRS 163.140 Commissionof tort by trustee or predecessor: Prerequisites to suit and collection fromtrust property; plaintiff not required to prove certain matters; entry of judgment;notice; intervention; personal liability of trustee; nonalteration of certain existinglaw.

NRS 163.145 Usingpower to appoint or distribute income to discharge own legal obligation prohibited.

NRS 163.150 Withdrawalfrom mingled money of multiple trusts.

NRS 163.160 Powerof settlor; liability of trustee for breach of trust.

NRS 163.170 Powerof beneficiary.

NRS 163.180 Powerof court.

NRS 163.185 Powerof court to order termination and distribution of trust before time provided intrust instrument.

NRS 163.190 Penaltyfor violation of certain provisions of chapter.

NRS 163.200 Uniformityof interpretation.

TESTAMENTARY ADDITIONS TO TRUSTS (UNIFORM ACT)

NRS 163.220 Shorttitle.

NRS 163.230 Testamentaryaddition to trust.

NRS 163.250 Uniformityof interpretation.

TRUST POWERS WHICH MAY BE INCLUDED IN A WILL OR AGREEMENT BYREFERENCE

NRS 163.260 Incorporationby reference of powers enumerated in NRS163.265 to 163.410, inclusive;restriction on exercise of such powers.

NRS 163.265 Retention ofproperty.

NRS 163.270 Sale,exchange or other disposition of property.

NRS 163.275 Investments;reinvestments; delegation of authority to invest.

NRS 163.280 Investmentswithout diversification.

NRS 163.285 Continuation ofbusiness.

NRS 163.290 Formationof corporation, limited-liability company or other entity.

NRS 163.295 Continuation offarming operation.

NRS 163.300 Managementof real property.

NRS 163.305 Payment of taxes andexpenses.

NRS 163.310 Receiptof additional property.

NRS 163.315 Dealing with otherfiduciaries.

NRS 163.320 Borrowingmoney; renewing existing loans.

NRS 163.325 Advancing money.

NRS 163.330 Votingshares.

NRS 163.335 Registration in nameof nominee.

NRS 163.340 Exerciseof options, rights and privileges.

NRS 163.345 Participation inreorganization.

NRS 163.350 Reductionof interest rate.

NRS 163.355 Continuation ofobligation.

NRS 163.360 Foreclosure;bidding in property.

NRS 163.365 Insurance.

NRS 163.370 Collections.

NRS 163.375 Litigation,compromise or abandonment of claim.

NRS 163.380 Employmentand compensation of persons.

NRS 163.385 Acquisition andholding of property of two or more trusts undivided.

NRS 163.390 Establishmentand maintenance of reserves.

NRS 163.395 Distribution in cashor kind.

NRS 163.400 Paymentto or for minor or incapacitated person.

NRS 163.405 Apportionment orallocation of receipts and expenses.

NRS 163.410 Executionof contract or other instrument.

CHARITABLE TRUSTS

NRS 163.420 Shorttitle.

NRS 163.430 Declarationof policy.

NRS 163.440 Referencesto Internal Revenue Code.

NRS 163.450 Definitions.

NRS 163.460 Charitabletrust defined.

NRS 163.470 Privatefoundation trust defined.

NRS 163.480 Splitinterest trust defined.

NRS 163.490 Trustdefined.

NRS 163.500 Trusteedefined.

NRS 163.510 Applicability.

NRS 163.520 Prohibitedacts.

NRS 163.530 Minimumdistribution required.

NRS 163.540 Amendmentof trust instrument: Procedure.

NRS 163.550 Amendmentof trust instrument: Provision for termination of status as private foundation.

MISCELLANEOUS PROVISIONS

NRS 163.560 Irrevocabletrust not to be construed as revocable.

NRS 163.565 Effectof divorce or annulment of marriage of settlor on revocable inter vivos trust.

NRS 163.570 Powersof trustee concerning gifts made by surviving spouse of decedent.

NRS 163.580 Dutyof third person to ensure proper application of trust property.

NRS 163.590 Dispositionof certain tangible personal property by reference to statement or list;requirements for admissibility of statement or list as evidence of intendeddisposition.

_________

GENERAL PROVISIONS

NRS 163.001 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS163.0011 to 163.0017, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 2350)

NRS 163.0011 Electronicrecord defined. Electronic record has themeaning ascribed to it in NRS 132.117.

(Added to NRS by 2001, 2350)

NRS 163.0013 Electronicsignature defined. Electronic signature hasthe meaning ascribed to it in NRS 132.118.

(Added to NRS by 2001, 2350)

NRS 163.0015 Electronictrust defined. Electronic trust means atrust instrument that complies with the requirements of NRS 163.0095.

(Added to NRS by 2001, 2350)

NRS 163.0017 Recorddefined. Record has the meaning ascribed toit in NRS 132.287.

(Added to NRS by 2001, 2350)

NRS 163.0019 Terms:Writing or written. As used in thischapter, unless the context otherwise requires, when the term writing orwritten is used in reference to a will, trust or instrument to conveyproperty, the term includes an electronic will as defined in NRS 132.119 or an electronic trust asdefined in NRS 163.0015, asappropriate.

(Added to NRS by 2001, 2350)

CREATION AND VALIDITY OF TRUSTS

NRS 163.002 Creation:Methods. Except as otherwise provided byspecific statute, a trust may be created by any of the following methods:

1. A declaration by the owner of property that heholds the property as trustee.

2. A transfer of property by the owner during hislifetime to another person as trustee.

3. A testamentary transfer of property by the owner toanother person as trustee.

4. An exercise of a power of appointment to anotherperson as trustee.

5. An enforceable promise to create a trust.

(Added to NRS by 1991, 1704)

NRS 163.003 Creation:Requirements. A trust is created only if:

1. The settlor properly manifests an intention tocreate a trust; and

2. There is trust property, except as otherwiseprovided in NRS 163.230.

(Added to NRS by 1991, 1704; A 1999, 2367)

NRS 163.004 Creation:Purpose.

1. A trust may be created for any purpose that is notillegal or against public policy.

2. A trust created for an indefinite or generalpurpose is not invalid for that reason if it can be determined with reasonablecertainty that a particular use of the trust property is within that purpose.

(Added to NRS by 1991, 1704)

NRS 163.005 Creation:Consideration. Consideration is not requiredto create a trust, but a promise to create a trust in the future is enforceableonly if it meets the requirements for enforcement as a contract.

(Added to NRS by 1991, 1705)

NRS 163.006 Creation:Beneficiary. A trust, other than a charitabletrust, is created only if there is a beneficiary. This requirement is satisfiedif the trust instrument provides for:

1. A beneficiary or class of beneficiaries that isascertainable with reasonable certainty or that is sufficiently described sothat it can be determined whether a person meets the description or is withinthe class; or

2. A grant of power to the trustee or some otherperson to select the beneficiary based on a standard or in the discretion ofthe trustee or other person.

(Added to NRS by 1991, 1704)

NRS 163.007 Validityof trust providing for one or more successor beneficiaries. If a trust provides for one or more successor beneficiariesafter the death of the settlor, the trust is not invalidated, merged orterminated because:

1. There is one settlor who is the sole trustee andthe sole beneficiary during the lifetime of the settlor; or

2. There are two or more settlors, one or more of whomare trustees, and the beneficial interest in the trust is in one or more of thesettlors during the lifetime of the settlors.

(Added to NRS by 1991, 1704)

NRS 163.0075 Validityof trust providing for care of one or more animals.

1. A trust created for the care of one or more animalsthat are alive at the time of the settlors death is valid. Such a trustterminates upon the death of all animals covered by the terms of the trust. Asettlors expression of intent must be liberally construed in favor of thecreation of such a trust.

2. Except as otherwise provided in this subsection,property of a trust described in subsection 1 may not be used in a mannerinconsistent with its intended use. Except as otherwise directed by the termsof the trust, if a court determines that the value of a trust described insubsection 1 exceeds the amount required to care for the animal beneficiary,the excess amount must be distributed to the person who would have taken thetrust property if the trust had terminated on the date of the distribution.

3. The intended use of a trust described in subsection1 may be enforced by the trustee or, if a trustee was not designated, by aperson appointed by the court to act as the trustee. A person having ademonstrated interest in the welfare of the animal beneficiary may petition thecourt for an order to appoint himself as trustee or to remove the trustee. Thecourt shall give preference for appointment to a person who demonstrates suchan interest.

(Added to NRS by 2001, 958)

NRS 163.008 Validityof trust created in relation to real property; recordation.

1. A trust created in relation to real property is notvalid unless it is created by operation of law or is evidenced by:

(a) A written instrument signed by the trustee, or bythe agent of the trustee if he is authorized in writing to do so; or

(b) A written instrument, including, withoutlimitation, an electronic trust, conveying the trust property and signed by thesettlor, or by the agent of the settlor if he is authorized in writing to doso.

2. Such a trust may be recorded in the office of thecounty recorder in the county where all or a portion of the real property islocated.

(Added to NRS by 1991, 1704; A 2001, 2350)

NRS 163.009 Oraltrust of personal property.

1. The existence and terms of an oral trust ofpersonal property may be established only by clear and convincing evidence. Theoral declaration of the settlor, in and of itself, is not sufficient toestablish the creation of such a trust.

2. A reference in statute to a trust instrument ordeclaration means, in the case of an oral trust, the terms of the trust asestablished by clear and convincing evidence.

(Added to NRS by 1991, 1705)

NRS 163.0095 Electronictrust.

1. An electronic trust is a trust instrument that:

(a) Is written, created and stored in an electronicrecord;

(b) Contains the electronic signature of the settlor;and

(c) Meets the requirements set forth in this chapterfor a valid trust.

2. An electronic trust shall be deemed to be executedin this State if the electronic trust is:

(a) Transmitted to and maintained by a custodiandesignated in the trust instrument at his place of business in this State or athis residence in this State; or

(b) Maintained by the settlor at his place of businessin this State or at his residence in this State, or by the trustee at his placeof business in this State or at his residence in this State.

3. The provisions of this section do not apply to atestamentary trust.

(Added to NRS by 2001, 2350)

GENERAL UNIFORM ACT

NRS 163.010 Shorttitle. NRS163.010 to 163.200, inclusive, maybe cited as the Uniform Trusts Act.

[20:136:1941; 1931 NCL 7718.49](NRS A 1967, 763; 1999, 2367)

NRS 163.020 Definitions. As used in NRS 163.010to 163.200, inclusive, unless thecontext or subject matter otherwise requires:

1. Affiliate means any person directly or indirectlycontrolling or controlled by another person, or any person under direct orindirect common control with another person. It includes any person with whom atrustee has an express or implied agreement regarding the purchase of trustinvestments by each from the other, directly or indirectly, except a broker orstock exchange.

2. Relative means a spouse, ancestor, descendant,brother or sister.

3. Trust means an express trust only.

4. Trustee means the person holding property intrust and includes trustees, a corporate as well as a natural person and asuccessor or substitute trustee.

[1:136:1941; 1931 NCL 7718.30](NRS A 1967, 763;1985, 510; 1999, 2367)

NRS 163.023 Powersof trustee. A trustee has the powers providedin the trust instrument, expressed by law or granted by the court uponpetition, as necessary or appropriate to accomplish a purpose of the trust, butthe court may not grant a power expressly prohibited by the trust instrument.

(Added to NRS by 1999, 2366)

NRS 163.027 Distributionof property or money of trust: Powers of trustee; manner; consent of affectedbeneficiaries required for distribution without proration under certaincircumstances.

1. Except as otherwise provided in subsection 2 or inthe trust, a trustee may distribute property and money:

(a) In divided or undivided interests; and

(b) With or without proration.

2. Each affected beneficiary must consent beforeproperty or money is distributed without proration, unless the trustspecifically authorizes the trustee to make that distribution.

(Added to NRS by 1999, 2366)

NRS 163.030 Loanof money held in trust. Except as provided in NRS 163.040, no corporate trustee shalllend trust funds to itself or an affiliate, or to any director, officer, oremployee of itself or of an affiliate; nor shall any noncorporate trustee lendtrust funds to himself, or to his relative, employer, employee, partner, orother business associate.

[2:136:1941; 1931 NCL 7718.31]

NRS 163.040 Corporatetrustee may deposit with self certain money held in trust.

1. A corporate trustee which is subject to regulationand supervision by state or federal authorities may deposit with itself trustfunds which are being held necessarily pending investment, distribution, or thepayment of debts, provided it pays into the trust for the deposit such interestas it is required by statute to pay on uninvested trust funds, or, if there isno statute, the same rate of interest it pays upon similar nontrust deposits,and maintains in its trust department as security for those deposits a separatefund consisting of securities legal for trust investments and at all timesequal in total market value to the amount of the deposits. No security may be requiredto the extent that the deposit is insured or given a preference by any state orfederal law.

2. The separate fund of securities must be marked assuch. Withdrawals from or additions to it may be made from time to time, aslong as the required value is maintained. The income of the securities belongsto the corporate trustee. In all statements of its financial conditionpublished, or delivered to the Commissioner of Financial Institutions, thecorporate trustee shall show as separate items the amount of trust funds whichit has deposited with itself and the amount of securities which it holds assecurity for the payment of those deposits.

[3:136:1941; 1931 NCL 7718.32](NRS A 1983, 1697;1987, 1875)

NRS 163.050 Trusteebuying from or selling to self or affiliate.

1. Except as otherwise provided in subsection 2, notrustee may directly or indirectly buy or sell any property for the trust fromor to itself or an affiliate, or from or to a director, officer or employee ofthe trustee or of an affiliate, or from or to a relative, employer, partner orother business associate of a trustee, except with the prior approval of thecourt having jurisdiction of the trust estate.

2. If authorized by the trust instrument or consentedto by all beneficiaries of the trust, a corporate trustee may directly orindirectly buy or sell any property, other than real property, for the trustfrom or to itself or an affiliate, or from or to a director, officer oremployee of the trustee or of an affiliate, or from or to a relative, employer,partner or other business associate of the trustee.

[4:136:1941; 1931 NCL 7718.33](NRS A 1999, 2367; 2003, 2265)

NRS 163.060 Trusteeselling from one trust to self as trustee of another trust.

1. Except as otherwise provided in subsection 2 orauthorized by the trust instrument, a trustee shall not as trustee of one trustsell property to itself as trustee of another trust except with the approval ofthe court having jurisdiction of the trust estate.

2. A bank or other corporate trustee which is subjectto regulation by state or federal authorities may sell a security which islisted on a regulated stock exchange or sold over the counter by the NationalAssociation of Securities Dealers and is held by it as fiduciary in one accountto itself as fiduciary in another account if the transaction is fair to thebeneficiaries of both accounts and is not otherwise expressly prohibited by aparticular statute.

[5:136:1941; 1931 NCL 7718.34](NRS A 1981, 557; 1999, 2367)

NRS 163.070 Purchaseby corporate trustee of its own stocks, bonds or other securities for trustprohibited unless specifically authorized. Exceptas otherwise authorized by the trust instrument or order of the court, acorporate trustee shall not purchase for a trust shares of its own stock, orits bonds or other securities, or the stock, bonds or other securities of anaffiliate.

[6:136:1941; 1931 NCL 7718.35](NRS A 1999, 2367)

NRS 163.080 Votingstock. A trustee owning corporate stock mayvote it by proxy, but shall be liable for any loss resulting to thebeneficiaries from a failure to use reasonable care in deciding how to vote thestock and in voting it.

[7:136:1941; 1931 NCL 7718.36]

NRS 163.090 Holdingstock in name of nominee. A trustee owningstock may hold it in the name of a nominee without mention of the trust in thestock certificate or stock registration books; providing that:

1. The trust records and all reports or accountsrendered by the trustee clearly show the ownership of the stock by the trusteeand the facts regarding its holding; and

2. The nominee shall deposit with the trustee a signedstatement showing the trust ownership.

The trusteeshall be personally liable for any loss to the trust resulting from any act ofsuch nominee in connection with stock so held.

[8:136:1941; 1931 NCL 7718.37](NRS A 1961, 471)

NRS 163.100 Powersof trustee attached to office. Unless it isotherwise provided by the trust instrument or by court order, all powers of atrustee are attached to the office and are not personal.

[9:136:1941; 1931 NCL 7718.38](NRS A 1999, 2368)

NRS 163.110 Powersof cotrustees: Exercisable by majority if more than two cotrustees; liabilityof dissenting cotrustee; unanimous action required if only two cotrustees;petition of interested person.

1. Unless it is otherwise provided by the trustinstrument or by court order, any power vested in three or more trustees may beexercised by a majority of the trustees. A trustee who has not joined inexercising a power is not liable to the beneficiaries or to others for theconsequences of the exercise of power and a dissenting trustee is not liablefor the consequences of an act in which that trustee joined at the direction ofthe majority trustees, if he expressed his dissent in writing to any of hiscotrustees at or before the time of the joinder.

2. This section does not excuse a cotrustee fromliability for inactivity in the administration of the trust nor for failure toattempt to prevent a breach of trust.

3. Except as otherwise authorized in the trustinstrument or by order of the court, a power vested in two trustees may only beexercised by unanimous action.

4. If the trustees cannot exercise a power vested inthem in a manner permitted by this section, an interested person may petitionthe court for appropriate instructions pursuant to NRS 164.010 and 164.015.

[10:136:1941; 1931 NCL 7718.39](NRS A 1999, 2368)

NRS 163.115 Breachof trust by trustee: Maintenance of proceeding; permissible purposes formaintenance of proceeding; nonexclusivity of remedies; method of commencingproceeding.

1. If a trustee commits or threatens to commit abreach of trust, a beneficiary or cotrustee of the trust may maintain aproceeding for any of the following purposes that is appropriate:

(a) To compel the trustee to perform his duties.

(b) To enjoin the trustee from committing the breach oftrust.

(c) To compel the trustee to redress the breach oftrust by payment of money or otherwise.

(d) To appoint a receiver or temporary trustee to takepossession of the trust property and administer the trust.

(e) To remove the trustee.

(f) To set aside acts of the trustee.

(g) To reduce or deny compensation of the trustee.

(h) To impose an equitable lien or a constructive truston trust property.

(i) To trace trust property that has been wrongfullydisposed of and recover the property or its proceeds.

2. The provision of remedies in subsection 1 does notpreclude resort to any other appropriate remedy provided by statute or commonlaw.

3. A proceeding under this section must be commencedby filing a petition under NRS 164.010and 164.015.

(Added to NRS by 1999, 2365)

NRS 163.120 Claimsbased on certain contracts or obligations: Assertion against trust; entry ofjudgment; notice; intervention; personal liability of trustee; significance ofuse of certain terms.

1. A claim based on a contract entered into by atrustee in the capacity of representative, or on an obligation arising fromownership or control of trust property, may be asserted against the trust byproceeding against the trustee in the capacity of representative, whether ornot the trustee is personally liable on the claim.

2. A judgment may not be entered in favor of theplaintiff in the action unless the plaintiff proves that within 30 days afterfiling the action, or within 30 days after the filing of a report of an earlycase conference if one is required, whichever is longer, or within such othertime as the court may fix, and more than 30 days before obtaining the judgment,the plaintiff notified each of the beneficiaries known to the trustee who thenhad a present interest, or in the case of a charitable trust, the AttorneyGeneral and any corporation which is a beneficiary or agency in the performanceof the charitable trust, of the existence and nature of the action. The noticemust be given by mailing copies to the beneficiaries at their last knownaddresses. The trustee shall furnish the plaintiff a list of the beneficiariesto be notified, and their addresses, within 10 days after written demandtherefor, and notification of the persons on the list constitutes compliancewith the duty placed on the plaintiff by this section. Any beneficiary, or in thecase of charitable trusts the Attorney General and any corporation which is abeneficiary or agency in the performance of the charitable trust, may intervenein the action and contest the right of the plaintiff to recover.

3. Except as otherwise provided in this chapter or inthe contract, a trustee is not personally liable on a contract properly enteredinto in the capacity of representative in the course of administration of thetrust unless the trustee fails to reveal the representative capacity or identifythe trust in the contract. The addition of the word trustee or the words astrustee after the signature of a trustee to a contract are prima facieevidence of an intent to exclude the trustee from personal liability.

[11:136:1941; 1931 NCL 7718.40](NRS A 1999, 2368)

NRS 163.130 Exonerationor reimbursement of trustee for tort.

1. A trustee who has incurred personal liability for atort committed in the administration of the trust is entitled to exonerationtherefor from the trust property if he has not discharged the claim, or to bereimbursed therefor out of trust funds if he has paid the claim, if:

(a) The tort was a common incident of the kind ofbusiness activity in which the trustee was properly engaged for the trust; or

(b) Although the tort was not a common incident of suchactivity, neither the trustee nor any officer or employee of the trustee wasguilty of personal fault in incurring the liability.

2. If a trustee commits a tort which increases thevalue of the trust property, he shall be entitled to exoneration orreimbursement with respect thereto to the extent of such increase in value,even though he would not otherwise be entitled to exoneration or reimbursement.

3. Nothing in this section shall be construed tochange the existing law with regard to the liability of trustees of charitabletrusts for torts of themselves or their employees.

[12:136:1941; 1931 NCL 7718.41]

NRS 163.140 Commissionof tort by trustee or predecessor: Prerequisites to suit and collection fromtrust property; plaintiff not required to prove certain matters; entry ofjudgment; notice; intervention; personal liability of trustee; nonalteration ofcertain existing law.

1. If a trustee or his predecessor has committed atort in the course of his administration of the trust, the trustee in thecapacity of representative may be sued and collection had from the trustproperty, if the court determines in the action that:

(a) The tort was a common incident of the kind ofbusiness activity in which the trustee or his predecessor was properly engagedfor the trust;

(b) That, although the tort was not a common incidentof such activity, neither the trustee nor his predecessor, nor any officer oremployee of the trustee or his predecessor, was guilty of personal fault inincurring the liability; or

(c) That, although the tort did not fall withinparagraph (a) or (b), it increased the value of the trust property.

If the tortis within paragraph (a) or (b), collection may be had of the full amount ofdamage proved, and if the tort is within paragraph (c) above, collection may behad only to the extent of the increase in the value of the trust property.

2. In an action against the trustee in the capacity ofrepresentative under this section, the plaintiff need not prove that thetrustee could have secured reimbursement from the trust fund if the trustee hadpaid the plaintiffs claim.

3. A judgment may not be entered in favor of theplaintiff in the action unless he proves that, within 30 days after filing theaction, or within 30 days after the filing of a report of an early caseconference if one is required, whichever is longer, or within such other periodas the court may fix, and more than 30 days before obtaining the judgment, henotified each of the beneficiaries known to the trustee who then had a presentinterest of the existence and nature of the action. The notice must be given bymailing copies to the beneficiaries at their last known addresses. The trusteeshall furnish the plaintiff a list of the beneficiaries and their addresses,within 10 days after written demand therefor, and notification of the personson the list constitutes compliance with the duty placed on the plaintiff bythis section. Any beneficiary may intervene in the action and contest the rightof the plaintiff to recover.

4. Subject to the rights of exoneration orreimbursement provided in NRS 163.130,the trustee may also be held personally liable for any tort committed by him,or by his agents or employees in the course of their employments only if thetrustee, agent or employee is personally at fault.

5. This section does not change the existing law withregard to the liability of trustees of charitable trusts for torts ofthemselves or their employees.

[13:136:1941; 1931 NCL 7718.42](NRS A 1999, 2369)

NRS 163.145 Usingpower to appoint or distribute income to discharge own legal obligationprohibited. Except as otherwise specificallyprovided in the trust instrument, a person who holds a power to appoint ordistribute income or principal to or for the benefit of others, individually oras trustee, may not use the power to discharge his legal obligations.

(Added to NRS by 1999, 2365)

NRS 163.150 Withdrawalfrom mingled money of multiple trusts. Where aperson who is a trustee of two or more trusts has mingled the money of two ormore trusts in the same aggregate of cash, or in the same bank, credit union orbrokerage account or other investment, and a withdrawal is made therefrom bythe trustee for his own benefit, or for the benefit of a third person not abeneficiary or creditor of one or more of the trusts, or for an unknownpurpose, the withdrawal must be charged first to the amount of cash, credit orother property of the trustee in the mingled fund, if any, and after theexhaustion of the trustees cash, credit or other property, then to the trustsin proportion to their interests in the cash, credit or other property at thetime of the withdrawal.

[14:136:1941; 1931 NCL 7718.43](NRS A 1999, 1459)

NRS 163.160 Powerof settlor; liability of trustee for breach of trust.

1. The settlor of a trust affected by NRS 163.010 to 163.200, inclusive, may, by provision inthe instrument creating the trust if the trust was created by a writing, or byoral statement to the trustee at the time of the creation of the trust if thetrust was created orally, or by an amendment of the trust if the settlorreserved the power to amend the trust, relieve his trustee from any or all ofthe duties, restrictions and liabilities which would otherwise be imposed uponhim by NRS 163.010 to 163.200, inclusive, or alter or deny to histrustee any or all of the privileges and powers conferred upon the trustee by NRS 163.010 to 163.200, inclusive, or add duties, restrictions,liabilities, privileges or powers to those imposed or granted by NRS 163.010 to 163.200, inclusive, but no act of thesettlor relieves a trustee from the duties, restrictions and liabilitiesimposed upon him by NRS 163.030, 163.040 and 163.050.

2. Except as otherwise provided in subsections 1 and3, a trustee may be relieved of liability for breach of trust by provisions ofthe trust instrument.

3. A provision of the trust instrument is noteffective to relieve a trustee of liability:

(a) For breach of trust committed intentionally, withgross negligence, in bad faith, or with reckless indifference to the interestof a beneficiary; or

(b) For any profit that he derives from a breach oftrust.

[15:136:1941; 1931 NCL 7718.44](NRS A 1999, 2370)

NRS 163.170 Powerof beneficiary. A beneficiary of a trustaffected by NRS 163.010 to 163.200, inclusive, may, if of full legalcapacity and acting upon full information, by written instrument delivered tothe trustee, relieve the trustee as to that beneficiary from any or all of theduties, restrictions and liabilities which would otherwise be imposed on thetrustee by NRS 163.010 to 163.200, inclusive, except as to theduties, restrictions and liabilities imposed by NRS 163.030, 163.040 and 163.050. The beneficiary may release thetrustee from liability to him for past violations of any of the provisions of NRS 163.010 to 163.200, inclusive.

[16:136:1941; 1931 NCL 7718.45](NRS A 1999, 2370)

NRS 163.180 Powerof court. A court may, for cause shown andupon notice to the beneficiaries, relieve a trustee from any or all of theduties and restrictions which would otherwise be placed upon the trustee by NRS 163.010 to 163.200, inclusive, or wholly or partlyexcuse a trustee who has acted honestly and reasonably from liability forviolation of the provisions of NRS 163.010to 163.200, inclusive.

[17:136:1941; 1931 NCL 7718.46](NRS A 1967, 763; 1999, 2371)

NRS 163.185 Powerof court to order termination and distribution of trust before time provided intrust instrument. Upon such terms andconditions as are just and proper, the court may order termination anddistribution of a trust before the time provided in the trust instrument, ifadministration or continued administration of the trust is no longer feasibleor economical. A petition for such an order may be filed by an interestedperson under. NRS 164.010 and 164.015.

(Added to NRS by 1999, 2366)

NRS 163.190 Penaltyfor violation of certain provisions of chapter. Ifa trustee violates any of the provisions of NRS163.010 to 163.200, inclusive, hemay be removed and denied compensation in whole or in part, and anybeneficiary, cotrustee or successor trustee may treat the violation as a breachof trust.

[18:136:1941; 1931 NCL 7718.47](NRS A 1967, 763; 1999, 2371)

NRS 163.200 Uniformityof interpretation. NRS 163.010 to 163.200, inclusive, must be so interpretedand construed as to effectuate their general purpose to make uniform the law ofthose states which enact them.

[19:136:1941; 1931 NCL 7718.48](NRS A 1967, 763; 1999, 2371)

TESTAMENTARY ADDITIONS TO TRUSTS (UNIFORM ACT)

NRS 163.220 Shorttitle. This section and NRS 163.230 and 163.250 may be cited as the UniformTestamentary Additions to Trusts Act.

(Added to NRS by 1967, 762)

NRS 163.230 Testamentaryaddition to trust.

1. A devise, the validity of which is determinable bythe law of this state, may be made by a will to a trustee or trustees of atrust established or created by the testator, or by the testator and some otherperson or persons, or by some other person or persons, including a funded orunfunded life insurance trust, although the settlor has reserved any or allrights of ownership of the insurance contracts, if the trust is identified inthe testators will and the terms are set forth in a written instrument otherthan a will, executed before or concurrently with the execution of thetestators will, or in the valid last will of a person who has predeceased thetestator, regardless of the existence, size or character of the corpus of thetrust.

2. The devise is not invalid because the trust isamendable or revocable, or both, or because the trust was amended after theexecution of the will or after the death of the testator.

3. Unless the testators will provides otherwise, theproperty so devised:

(a) Shall not be deemed to be held under a testamentarytrust of the testator but is a part of the trust to which it is given; and

(b) Must be administered and disposed of in accordancewith the provisions of the instrument or will setting forth the terms of thetrust, including any amendments thereto made before the death of the testator,regardless of whether made before or after the execution of the testatorswill, or any modifications or amendments whenever made, which are made pursuantto the Charitable Trust Act of 1971, and, if the testators will so provides,including any amendments to the trust made after the death of the testator.

4. A revocation or termination of the trust before thedeath of the testator causes the devise to lapse.

(Added to NRS by 1967, 762; A 1971, 634; 1985, 244; 1999, 2371)

NRS 163.250 Uniformityof interpretation. This section and NRS 163.220 and 163.230 shall be so construed as toeffectuate their general purpose to make uniform the law of those states whichenact them.

(Added to NRS by 1967, 763)

TRUST POWERS WHICH MAY BE INCLUDED IN A WILL OR AGREEMENTBY REFERENCE

NRS 163.260 Incorporationby reference of powers enumerated in NRS 163.265 to 163.410,inclusive; restriction on exercise of such powers.

1. By an expressed intention of the testator orsettlor to do so contained in a will, or in an instrument in writing whereby atrust estate is created inter vivos, any or all of the powers or any portionthereof enumerated in NRS 163.265 to 163.410, inclusive, as they exist at thetime that the testator signs the will or places his electronic signature on thewill, if it is an electronic will, or at the time that the first settlor signsthe trust instrument or places his electronic signature on the trust instrument,if it is an electronic trust, may be, by appropriate reference made thereto,incorporated in such will or other written instrument, with the same effect asthough such language were set forth verbatim in the instrument. Incorporationof one or more of the powers contained in NRS163.265 to 163.410, inclusive, byreference to the proper section shall be in addition to and not in limitationof the common-law or statutory powers of the fiduciary.

2. A fiduciary shall not exercise any power orauthority conferred as provided in NRS163.260 to 163.410, inclusive, insuch a manner as, in the aggregate, to deprive the trust or the estate involvedof an otherwise available tax exemption, deduction or credit, expresslyincluding the marital deduction, or operate to impose a tax upon a donor ortestator or other person as owner of any portion of the trust or estateinvolved. Tax includes, but is not limited to, any federal income, gift,estate or inheritance tax.

3. This section does not prevent the incorporation ofthe powers enumerated in NRS 163.265 to 163.410, inclusive, in any other kind ofinstrument or agreement.

4. As used in this section, electronic will has themeaning ascribed to it in NRS 132.119.

(Added to NRS by 1969, 449; A 2001, 2350)

NRS 163.265 Retentionof property. A fiduciary may retain for suchtime as the fiduciary deems advisable any property, real or personal, which thefiduciary may receive, even though the retention of such property by reason ofits character, amount, proportion to the total estate or otherwise would not beappropriate for the fiduciary apart from this provision.

(Added to NRS by 1969, 449)

NRS 163.270 Sale,exchange or other disposition of property.

1. A fiduciary may:

(a) Sell, exchange, give options upon, partition orotherwise dispose of any property or interest therein which the fiduciary mayhold from time to time, with or without order of court, at public or privatesale or otherwise, upon such terms and conditions, including credit, and forsuch consideration as the fiduciary deems advisable.

(b) Transfer and convey the property or interesttherein which is at the disposal of the fiduciary, in fee simple, absolute orotherwise, free of all trust.

2. The person dealing with the fiduciary has no dutyto follow the proceeds or other consideration received by the fiduciary fromsuch sale or exchange.

(Added to NRS by 1969, 449)

NRS 163.275 Investments;reinvestments; delegation of authority to invest.

1. A fiduciary may invest and reinvest, as he deemsadvisable:

(a) In stocks, common or preferred, bonds, debentures,notes, mortgages or other securities in or outside the United States;

(b) In insurance contracts on the life of anybeneficiary or of any person in whom a beneficiary has an insurable interest,or in annuity contracts for any beneficiary;

(c) In any real or personal property;

(d) In investment trusts;

(e) In participations in common trust funds;

(f) In securities of any corporation, trust,association or fund:

(1) Which is engaged, or proposes to engage, inthe business of investing, reinvesting, owning, holding or trading insecurities;

(2) Whose assets are invested principally incash or in securities of other issuers; and

(3) Which is registered as an investment companywith the Securities and Exchange Commission; and

(g) Generally in such property as the fiduciary deemsadvisable, even though the investment is not of the character approved byapplicable law but for this section.

2. A fiduciary may delegate the authority to invest,but he is not thereby relieved of any liability that exists in the absence ofdelegation.

(Added to NRS by 1969, 450; A 1985, 17; 1999, 2372)

NRS 163.280 Investmentswithout diversification. A fiduciary may makeinvestments which cause a greater proportion of the total property held by thefiduciary to be invested in investments of one type or of one company thanwould be considered appropriate for the fiduciary apart from this section.

(Added to NRS by 1969, 450)

NRS 163.285 Continuationof business.

1. A fiduciary may, to the extent and upon such termsand conditions and for such periods of time as the fiduciary deems necessary oradvisable, continue or participate in the operation of any business or otherenterprise, whatever its form of organization, including but not limited to thepower to:

(a) Effect incorporation, dissolution, or other changein the form of the organization of the business or enterprise;

(b) Dispose of any interest therein or acquire theinterest of others therein;

(c) Contribute thereto or invest therein additionalcapital or to lend money thereto, in any such case upon such terms andconditions as the fiduciary approves from time to time; or

(d) Determine whether the liabilities incurred in theconduct of the business are to be chargeable solely to the part of the estate ortrust set aside for use in the business or to the estate or trust as a whole;and

2. In all cases in which the fiduciary is required tofile accounts in any court or in any other public office, it is not necessaryto itemize receipts and disbursements and distributions of property but it issufficient for the fiduciary to show in the account a single figure orconsolidation of figures; and the fiduciary may account for money and propertyreceived from the business and any payments made to the business in lump sumwithout itemization.

(Added to NRS by 1969, 450)

NRS 163.290 Formationof corporation, limited-liability company or other entity. A fiduciary may form a corporation, limited-liabilitycompany or other entity, and transfer, assign and convey to the corporation,limited-liability company or entity all or any part of the estate or of anytrust property in exchange for the stock, securities or obligations of thecorporation, limited-liability company or entity, and continue to hold thestock and securities and obligations.

(Added to NRS by 1969, 450; A 1999, 2372)

NRS 163.295 Continuationof farming operation. A fiduciary may continueany farming operation received by the fiduciary pursuant to the will, trust orother instrument and do any and all things deemed advisable by the fiduciary inthe management and maintenance of such farm and the production and marketing ofcrops and dairy, poultry, livestock, orchard and the forest products,including, but not limited to, the following powers:

1. To operate the farm with hired labor, tenants orsharecroppers;

2. To lease or rent the farm for cash or for a shareof the crops;

3. To purchase or otherwise acquire farm machinery andequipment and livestock;

4. To construct, repair and improve farm buildings ofall kinds needed, in the fiduciarys judgment, for the operation of the farm;

5. To make or obtain loans or advances at theprevailing rate or rates of interest for farm purposes such as for production,harvesting or marketing, or for the construction, repair or improvement of farmbuildings, or for the purchase of farm machinery, equipment or livestock;

6. To employ approved soil conservation practices in orderto conserve, improve and maintain the fertility and productivity of the soil;

7. To protect, manage and improve the timber andforest on the farm and sell the timber and forest products when it is to thebest interest of the estate;

8. To ditch, dam and drain damp or wet fields andareas of the farm when and where needed;

9. To engage in the production of livestock, poultryor dairy products, and to construct such fences and buildings and plant suchpastures and crops as may be necessary to carry on such operations;

10. To market the products of the farm; and

11. In general, to employ good husbandry in thefarming operation.

(Added to NRS by 1969, 450; A 1999, 2372)

NRS 163.300 Managementof real property. In the management of realproperty a fiduciary may:

1. Improve, manage, protect and subdivide any realproperty;

2. Dedicate or withdraw from dedication parks,streets, highways or alleys;

3. Terminate any subdivision or part thereof;

4. Borrow money for the purposes authorized by thissection for such periods of time and upon such terms and conditions as torates, maturities and renewals as the fiduciary deems advisable and mortgage orotherwise encumber any such property or part thereof, whether in possession orreversion;

5. Lease any such property or part thereof to commenceat the present or in the future, upon such terms and conditions, includingoptions to renew or purchase, and for such period or periods of time as thefiduciary deems advisable although such period or periods may extend beyond theduration of the trust or the administration of the estate involved;

6. Make gravel, sand, oil, gas and other mineralleases, contracts, licenses, conveyances or grants of every nature and kindwhich are lawful in the jurisdiction in which such property lies;

7. Manage and improve timber and forests on suchproperty, sell the timber and forest products, and make grants, leases andcontracts with respect thereto;

8. Modify, renew or extend leases;

9. Employ agents to rent and collect rents;

10. Create easements and release, convey or assign anyright, title or interest with respect to any easement on such property or partthereof;

11. Erect, repair or renovate any building or otherimprovement on such property, and remove or demolish any building or otherimprovement in whole or in part; and

12. Deal with any such property and every part thereofin all other ways and for such other purposes or considerations as it would belawful for any person owning the same to deal with such property either in thesame or in different ways from those specified elsewhere in this section.

(Added to NRS by 1969, 451)

NRS 163.305 Paymentof taxes and expenses. A fiduciary may paytaxes, assessments, compensation of the fiduciary, and other expenses incurredin the collection, care, administration and protection of the trust or estate.

(Added to NRS by 1969, 452)

NRS 163.310 Receiptof additional property. A fiduciary mayreceive additional property from any source and administer such additionalproperty as a portion of the appropriate trust or estate under the managementof the fiduciary, but may not be required to receive such property without hisconsent.

(Added to NRS by 1969, 452)

NRS 163.315 Dealingwith other fiduciaries. In dealing with one ormore fiduciaries, a fiduciary may:

1. Sell property, real or personal, to, or exchangeproperty with, the trustee of any trust which the decedent or the settlor orthe settlors spouse or any child of the settlor has created, for such estatesand upon such terms and conditions as to sale price, terms of payment andsecurity as to the fiduciary seem advisable. The fiduciary has no duty tofollow the proceeds of any such sale.

2. Borrow money for such periods of time and upon suchterms and conditions as to rates, maturities, renewals and securities as thefiduciary deems available from any trust created by the decedent, or the spouseor child of the decedent, for the purpose of:

(a) Paying debts of the decedent, taxes, the costs ofthe administration of the estate and like charges against the estate, or anypart thereof; or

(b) Discharging the liability of any fiduciary thereof.A fiduciary may mortgage, pledge or otherwise encumber such portion of theestate or any trust as may be required to obtain the loan or loans and to renewthe loans.

(Added to NRS by 1969, 452; A 1999, 2373)

NRS 163.320 Borrowingmoney; renewing existing loans. A fiduciarymay:

1. Borrow money for such periods of time and upon suchterms and conditions as to rates, maturities, renewals and security as thefiduciary deems advisable, including the power of a corporate fiduciary toborrow from its own banking department, for the purpose of paying debts, taxesor other charges against the estate or any trust, or any part thereof;

2. Provide a guarantee by the trust or mortgage,pledge or otherwise encumber such portion of the estate or any trust as may berequired to obtain loan or loans; and

3. Renew existing loans either as maker or endorser.

(Added to NRS by 1969, 452; A 1999, 2373)

NRS 163.325 Advancingmoney. A fiduciary may advance money for theprotection of the trust or estate, and for all expenses, losses and liabilitiessustained in the administration of the trust or estate or because of theholding or ownership of any trust or estate assets, for which advances with anyinterest the fiduciary shall have a lien on the assets of the trust or estateas against a beneficiary.

(Added to NRS by 1969, 452)

NRS 163.330 Votingshares. A fiduciary may vote shares of stockowned by the estate or any trust at stockholders meetings in person or byspecial, limited or general proxy, with or without power of substitution.

(Added to NRS by 1969, 452; A 1975, 446)

NRS 163.335 Registrationin name of nominee. A fiduciary may hold asecurity in the name of a nominee or in other form without disclosure of thefiduciary relationship so that title to the security may pass by delivery, butthe fiduciary shall be liable for any act of the nominee in connection with thestock so held.

(Added to NRS by 1969, 452)

NRS 163.340 Exerciseof options, rights and privileges. A fiduciarymay:

1. Exercise all options, rights and privileges toconvert stocks, bonds, debentures, notes, mortgages or other property intoother stocks, bonds, debentures, notes, mortgages or other property;

2. Subscribe for other or additional stocks, bonds,debentures, notes, mortgages or other property; and

3. Hold such stocks, bonds, debentures, notes,mortgages or other property so acquired as investments of the estate or trustso long as the fiduciary deems advisable.

(Added to NRS by 1969, 453)

NRS 163.345 Participationin reorganization. A fiduciary may:

1. Unite with other owners of property similar to anywhich may be held at any time in the decedents estate or in any trusts incarrying out any plan for the consolidation or merger, dissolution orliquidation, foreclosure, lease or sale of the property, incorporation orreincorporation, reorganization or readjustment of the capital or financialstructure of any corporation, company or association the securities of whichmay form any portion of an estate or trust;

2. Become and serve as a member of a stockholders orbondholders protective committee;

3. Deposit securities in accordance with any planagreed upon;

4. Pay any assessments, expenses or sums of money thatmay be required for the protection or furtherance of the interest of thedistributees of an estate or beneficiaries of any trust with reference to anysuch plan; and

5. Receive as investments of any estate or any trustany securities issued as a result of the execution of such plan.

(Added to NRS by 1969, 453)

NRS 163.350 Reductionof interest rate. A fiduciary may reduce theinterest rate from time to time on any obligation, whether secured orunsecured, constituting a part of an estate or trust.

(Added to NRS by 1969, 453)

NRS 163.355 Continuationof obligation. A fiduciary may continue anyobligation, whether secured or unsecured, upon and after maturity with orwithout renewal or extension upon such terms as the fiduciary deems advisable,without regard to the value of the security, if any, at the time of suchcontinuance.

(Added to NRS by 1969, 453)

NRS 163.360 Foreclosure;bidding in property. A fiduciary may:

1. Foreclose, as an incident to the collection of anybond, note or other obligation, any mortgage, deed of trust or other liensecuring such bond, note or other obligation;

2. Bid in the property at such foreclosure sale, oracquire the property by deed from the mortgagor or obligor without foreclosure;and

3. Retain the property so bid in or taken over withoutforeclosure.

(Added to NRS by 1969, 453)

NRS 163.365 Insurance. A fiduciary may carry such insurance coverage, includingpublic liability, for such hazards and in such amounts, either in stock companiesor in mutual companies, as the fiduciary deems advisable.

(Added to NRS by 1969, 453)

NRS 163.370 Collections. A fiduciary may collect, receive and receipt for rents,issues, profits and income of an estate or trust.

(Added to NRS by 1969, 453)

NRS 163.375 Litigation,compromise or abandonment of claim. A fiduciarymay compromise, adjust, arbitrate, sue on or defend, abandon or otherwise dealwith and settle claims in favor of or against the estate or trust as thefiduciary deems advisable, and the fiduciarys decision shall be conclusivebetween the fiduciary and the beneficiaries of the estate or trust and theperson against or for whom the claim is asserted, in the absence of fraud bysuch person, and, in the absence of fraud, bad faith or gross negligence of thefiduciary, shall be conclusive between the fiduciary and the beneficiaries ofthe estate or trust.

(Added to NRS by 1969, 453)

NRS 163.380 Employmentand compensation of persons. A fiduciary mayemploy and compensate, out of income or principal or both and in suchproportion as the fiduciary deems advisable, persons deemed by the fiduciaryneedful to advise or assist in the proper settlement of the estate or administrationof any trust, including, but not limited to, agents, accountants, brokers,attorneys at law, attorneys-in-fact, investment brokers, rental agents,realtors, appraisers and tax specialists; and do so without liability for anyneglect, omission, misconduct or default of such agent or representative if hewas selected and retained with due care on the part of the fiduciary.

(Added to NRS by 1969, 454)

NRS 163.385 Acquisitionand holding of property of two or more trusts undivided.

1. A fiduciary may:

(a) Acquire, receive, hold and retain the principal ofseveral trusts created by a single instrument undivided until division becomesnecessary in order to make distributions.

(b) Hold, manage, invest, reinvest and account for theseveral shares or parts of shares by appropriate entries in the fiduciarysbooks of account, and allocate to each share or part of share its proportionatepart of all receipts and expenses.

2. The provisions of this section shall not defer thevesting in possession of any share or part of share of the estate or trust.

(Added to NRS by 1969, 454)

NRS 163.390 Establishmentand maintenance of reserves.

1. A fiduciary may:

(a) Set up proper and reasonable reserves for taxes,assessments, insurance premiums, depreciation, obsolescence, amortization,depletion of mineral or timber properties, repairs, improvements and generalmaintenance of buildings or other property out of rents, profits or otherincome received; and

(b) Set up reserves also for the equalization of paymentsto or for beneficiaries.

2. The provisions of this section shall not affect theultimate interests of beneficiaries in such reserves.

(Added to NRS by 1969, 454)

NRS 163.395 Distributionin cash or kind.

1. A fiduciary may:

(a) Make distribution of capital assets of the estateor trust in kind or in cash, or partially in kind and partially in cash, individed or undivided interests, as the fiduciary finds to be most practicableand for the best interests of the distributees; and

(b) Determine the value of capital assets for thepurpose of making distribution thereof if and when there is more than onedistributee thereof, which determination shall be binding upon the distributeesunless clearly capricious, erroneous and inequitable.

2. The fiduciary shall not exercise any power underthis section unless the fiduciary holds title to or an interest in the propertyto be distributed and is required or authorized to make distribution thereof.

(Added to NRS by 1969, 454)

NRS 163.400 Paymentto or for minor or incapacitated person. Afiduciary may:

1. Make payments in money, or in property in lieu ofmoney, to or for a minor or incapacitated person in any one or more of thefollowing ways:

(a) Directly to the minor or incapacitated person.

(b) To apply directly in payment for the support,maintenance, education and medical, surgical, hospital or other institutionalcare of the minor or incapacitated person.

(c) To the legal or natural guardian of the minor orincapacitated person.

(d) To any other person, whether or not appointedguardian of the person by any court, who has, in fact, the care and custody ofthe person of the minor or incapacitated person.

2. The fiduciary has no duty to see to the applicationof the payments so made, if the fiduciary exercised due care in the selectionof the person, including the minor or incapacitated person, to whom thepayments were made, and the receipt of that person is full acquittance to thefiduciary.

(Added to NRS by 1969, 454; A 1999, 2373)

NRS 163.405 Apportionmentor allocation of receipts and expenses. Afiduciary may determine:

1. What is principal and what is income of any estateor trust and may allocate or apportion receipts and expenses as betweenprincipal and income in the exercise of the fiduciarys discretion, and, by wayof illustration and no limitation of the fiduciarys discretion, may chargepremiums on securities purchased at a premium against principal or income orpartly against each.

2. Whether to apply stock dividends and other noncashdividends to income or principal or apportion them as the fiduciary deemsadvisable.

3. What expenses, costs, taxes (other than estate,inheritance and succession taxes) and other governmental charges shall becharged against principal or income or apportioned between principal and incomeand in what proportions.

(Added to NRS by 1969, 455)

NRS 163.410 Executionof contract or other instrument. A fiduciarymay make contracts and execute instruments, under seal or otherwise, as may benecessary in the exercise of the powers herein granted.

(Added to NRS by 1969, 455)

CHARITABLE TRUSTS

NRS 163.420 Shorttitle. NRS163.420 to 163.550, inclusive, shallbe known as the Charitable Trust Act of 1971.

(Added to NRS by 1971, 632)

NRS 163.430 Declarationof policy. The legislature hereby declaresthat the policy of the State is to maximize the funds available for charitablepurposes by minimizing, to the greatest extent practicable, the imposition offederal income and excise taxes upon trust assets otherwise available for charitablepurposes.

(Added to NRS by 1971, 632)

NRS 163.440 Referencesto Internal Revenue Code. As used in NRS 163.420 to 163.550, inclusive, unless otherwiseindicated, section references are to the Internal Revenue Code of 1986, as ineffect on January 1, 1999, and include future amendments to such sections andcorresponding provisions of future federal internal revenue laws.

(Added to NRS by 1971, 632; A 1999, 2374)

NRS 163.450 Definitions. As used in NRS 163.420to 163.550, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 163.460 to 163.500, inclusive, have the meaningsascribed to them in NRS 163.460 to 163.500, inclusive.

(Added to NRS by 1971, 632)

NRS 163.460 Charitabletrust defined. Charitable trust means an organizationdescribed in Section 4947(a)(1).

(Added to NRS by 1971, 633)

NRS 163.470 Privatefoundation trust defined. Private foundationtrust means a trust as defined in Section 509(a), including a trust describedin Section 4947(a)(1).

(Added to NRS by 1971, 633)

NRS 163.480 Splitinterest trust defined. Split interesttrust means a trust for individual and charitable beneficiaries as defined inand subject to the provisions of Section 4947(a)(2).

(Added to NRS by 1971, 633)

NRS 163.490 Trustdefined. Trust means an express trustcreated by a trust instrument, including a last will and testament.

(Added to NRS by 1971, 633)

NRS 163.500 Trusteedefined. Trustee means a trustee, trustees,person or persons possessing a power or powers referred to in NRS 163.420 to 163.550, inclusive.

(Added to NRS by 1971, 633)

NRS 163.510 Applicability. The provisions of NRS163.420 to 163.550, inclusive, whichare applicable to any of the trusts defined in NRS 163.460 to 163.500, inclusive, apply to all trusts,whether they were created before, on or after April 17, 1971.

(Added to NRS by 1971, 633)

NRS 163.520 Prohibitedacts.

1. In the administration of any private foundationtrust, split interest trust or charitable trust which is subject to theprovisions of the Internal Revenue Code of 1986, as in effect on January 1,1999, the following acts are prohibited:

(a) Engaging in any act or self-dealing, as definedin Section 4941(d), which would give rise to any liability for the tax imposedby Section 4941(a);

(b) Retaining any excess business holdings, asdefined in Section 4943(c), which would give rise to any liability for the taximposed by Section 4943(a);

(c) Making any investments which would jeopardize thecarrying out of any of the exempt purposes of the trust within the meaning ofSection 4944, so as to give rise to any liability for the tax imposed bySection 4944(a); and

(d) Making any taxable expenditures, as defined inSection 4945(d), which would give rise to any liability for the tax imposed bySection 4945(a).

2. This section does not apply to those split interesttrusts or amounts of such split interest trusts which are not subject to theprohibitions applicable to private foundations by reason of the provisions of Section4947.

(Added to NRS by 1971, 633; A 1999, 2374)

NRS 163.530 Minimumdistribution required. In the administrationof any trust which is a private foundation trust or a charitable trust, thereshall be distributed for the purposes specified in the trust instrument, foreach taxable year, amounts at least sufficient to avoid liability for the taximposed by Section 4942(a).

(Added to NRS by 1971, 633)

NRS 163.540 Amendmentof trust instrument: Procedure.

1. A court of this state having jurisdiction over anytrust to which NRS 163.420 to 163.550, inclusive, apply may amend anytrust instrument to conform to the provisions of NRS 163.420 to 163.550, inclusive.

2. Any such amendment must be effected by the trusteefiling a petition with the court. The clerk of the court shall set a date forthe hearing of the petition, and the trustee shall cause notice of the hearingof the petition to be:

(a) Personally served on the settlor or settlors of thetrust, if living, and on all named beneficiaries of the trust, if any, for theperiod and in the manner provided in NRS155.010;

(b) Published on three dates of publication before thehearing, and if the newspaper is published more than once each week, there mustbe at least 10 days from the first to last date of publication, including boththe first and the last days; and

(c) Delivered, together with a copy of the petition, tothe Attorney General of the State of Nevada at the time of the filing of thepetition.

3. At the hearing of the petition, the court mayauthorize the trustee to amend, revise, delete or add provisions to the trustinstrument to conform to NRS 163.420 to 163.550, inclusive, to avoid the penaltiesand liabilities described in Sections 4941(a), 4942(a), 4943(a), 4944(a) and4945(a), but if the settlor or settlors of the trust are living and competentto act, written consent of the settlor or settlors must first be obtained.

(Added to NRS by 1971, 633; A 1999, 2374)

NRS 163.550 Amendmentof trust instrument: Provision for termination of status as private foundation. In addition to amending, revising, deleting or addingprovisions to the articles of the trust to conform to the sections set out insubsection 3 of NRS 163.540, thepetition may include a request, and the court or judge may authorize anymodifications, revisions, deletions or additions to the term, or to theconditions and provisions of the articles of any trust subject to thejurisdiction of the court, for the trust to conform with the requirements fortermination of private foundation status as provided in Section 507, or inorder to avoid the tax provided in Section 507(c).

(Added to NRS by 1971, 634)

MISCELLANEOUS PROVISIONS

NRS 163.560 Irrevocabletrust not to be construed as revocable.

1. If the settlor of any trust specifically declaresin the instrument creating the trust that such trust is irrevocable it shall beirrevocable for all purposes, even though the settlor is also the beneficiaryof such trust.

2. Such trust shall, under no circumstances, beconstrued to be revocable for the reason that the settlor and beneficiary isthe same person.

(Added to NRS by 1973, 372)

NRS 163.565 Effectof divorce or annulment of marriage of settlor on revocable inter vivos trust. Divorce or annulment of the marriage of a settlor revokesevery devise, beneficial interest or designation to serve as trustee given bythe settlor to the former spouse of the settlor in a revocable inter vivostrust executed before the entry of the decree of divorce or annulment unlessotherwise:

1. Provided in a property or separation agreement thatis approved by the court in the divorce or annulment proceedings; or

2. Ordered by the court in the divorce or annulmentproceedings,

and therevocable inter vivos trust provisions take effect in the same manner as if thespouse had predeceased the trustor.

(Added to NRS by 2003, 342)

NRS 163.570 Powersof trustee concerning gifts made by surviving spouse of decedent. A trustee may:

1. Join with a decedents surviving spouse or thepersonal representative of the decedents estate in the execution and filing ofa joint income tax return for any period before the decedents death for whichthe decedent had not filed an income tax or gift tax return on gifts made bythe spouse;

2. Consent to treat such gifts as having been madeone-half by the decedent for any period before his death; and

3. Pay such taxes thereon as are chargeable to thedecedent.

(Added to NRS by 1979, 455; A 1999, 2375)

NRS 163.580 Dutyof third person to ensure proper application of trust property. A third person who acts in good faith is not bound toensure the proper application of trust property paid or delivered to a trustee.

(Added to NRS by 1999, 2366)

NRS 163.590 Dispositionof certain tangible personal property by reference to statement or list;requirements for admissibility of statement or list as evidence of intendeddisposition.

1. Whether or not the provisions relating toelectronic trusts apply, a trust may refer to a written statement or list,including, without limitation, a written statement or list contained in anelectronic record, to dispose of items of tangible personal property nototherwise specifically disposed of by the trust, other than money, evidences ofindebtedness, documents of title, securities and property used in a trade orbusiness.

2. To be admissible as evidence of the intendeddisposition, the statement or list must contain:

(a) The date of its execution.

(b) A title indicating its purpose.

(c) A reference to the trust to which it relates.

(d) A reasonably certain description of the items to bedisposed of and the beneficiaries.

(e) The handwritten signature or electronic signatureof the settlor.

3. The statement or list may be:

(a) Referred to as a writing to be in existence at thedeath of the settlor.

(b) Prepared before or after the execution of the trustinstrument.

(c) Altered by the settlor after its preparation.

(d) A writing which has no significance apart from itseffect upon the dispositions made by the trust.

(Added to NRS by 1999, 2366; A 2001, 2351)

 

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