2005 Nevada Revised Statutes - Chapter 165 — Trustees Accounting (Uniform Act)

CHAPTER 165 - TRUSTEES ACCOUNTING (UNIFORMACT)

TITLE AND DEFINITIONS

NRS 165.010 Shorttitle.

NRS 165.020 Definitions.

TESTAMENTARY TRUSTS

NRS 165.030 Inventory.

NRS 165.040 Intermediateaccountings: General requirements; exceptions.

NRS 165.045 Intermediateaccountings: Notice; hearing.

NRS 165.050 Finalaccounting: General requirements.

NRS 165.055 Finalaccounting: Notice.

NRS 165.060 Accountingof distribution of property; discharge of trustee.

NRS 165.090 Vouchers,cancelled checks or other documents supporting account; lost vouchers.

NRS 165.100 Representationof beneficiary.

NRS 165.110 Proceedingsin court.

NRS 165.120 Approvalor disapproval by court; reopening.

NONTESTAMENTARY TRUSTS

NRS 165.135 Accounts.

GENERAL PROVISIONS

NRS 165.150 Dutiesof clerks and courts.

NRS 165.160 Powerof settlor.

NRS 165.170 Powerof beneficiary.

NRS 165.180 Accountabilityof trustees at other times.

NRS 165.190 Enforcement.

NRS 165.200 Penaltiesfor violation of chapter.

NRS 165.210 Formof inventory and accounts; compensation of attorney for intermediate and finalaccounts.

NRS 165.220 Oaths.

NRS 165.230 Charitabletrusts.

NRS 165.240 Uniformityof interpretation.

_________

TITLE AND DEFINITIONS

NRS 165.010 Shorttitle. This chapter shall be cited as theUniform Trustees Accounting Act.

[24:135:1941; 1931 NCL 7718.23]

NRS 165.020 Definitions.

1. As used in this chapter:

(a) Affiliate means any person directly or indirectlycontrolling or controlled by another person, or any person under direct orindirect common control by 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.

(b) Beneficiary includes a beneficiary under thetrust, a person who is entitled to the trust capital at the termination of thetrust and a surety on the bond of the trustee.

(c) Nontestamentary trustee means a trustee servingunder a trust created in this state otherwise than by a will, or such a trustadministered in this state, whether the trustee was appointed by the settlor orby a court or other authority.

(d) Relative means a spouse, ancestor, descendant,brother or sister.

(e) Settlor includes the creator of a testamentary aswell as a nontestamentary trust.

(f) Testamentary trustee means a trustee servingunder a trust created by a will of a testator domiciled in this state at thetime of the testators death, whose will has been admitted to probate in thisstate, whether the trustee was appointed by the testator or by a court or otherauthority.

(g) Trustee includes trustees, a corporate as well asa natural person, a successor or substitute trustee, and the successor ininterest of a deceased sole trustee.

2. This chapter does not apply to resulting trusts,constructive trusts, business trusts where certificates of beneficial interestare issued to the beneficiaries, investment trusts, voting trusts, insurancetrusts prior to the death of the insured, trusts in the nature of mortgages orpledges, trusts created by judgment or decree of a federal court or a statecourt other than the district court acting in probate matters, liquidationtrusts, or trust for the sole purpose of paying dividends, interest or interestcoupons, salaries, wages or pensions.

[1:135:1941; 1931 NCL 7718](NRS A 1999, 2380)

TESTAMENTARY TRUSTS

NRS 165.030 Inventory. Within 75 days after a testamentary trustee receivespossession of trust property, the trustee shall file with the court where thewill was admitted to probate an inventory under oath, showing by items all thetrust property which has come to the possession or knowledge of the trustee.

[2:135:1941; 1931 NCL 7718.01](NRS A 1975, 1781; 1999, 2381)

NRS 165.040 Intermediateaccountings: General requirements; exceptions.

1. Except as otherwise provided in subsection 3,within 60 days after the end of the calendar year in which the testamentarytrustee had a duty to file an inventory, as prescribed in NRS 165.030, the testamentary trustee shallfile with the court of the county where the will was admitted to probate anintermediate account under oath covering the year and showing:

(a) The period which the account covers;

(b) The names and addresses of the living beneficiariesknown to the trustee, with a statement as to those known to be minors orincapacitated persons, a description of any possible unborn or unascertainedbeneficiaries, and the name of the surety or sureties on the trustees bondwith the amount of the bond;

(c) In a separate schedule, additions to trustprincipal during the accounting period with the dates and sources ofacquisition, investments collected, sold or charged off during the accountingperiod, investments made during the accounting period, with the date, sourceand cost of each, deductions from principal during the accounting period, withthe date and purpose of each, and the trust principal, invested or uninvested,on hand at the end of the accounting period, reflecting the approximate marketvalue thereof;

(d) In a separate schedule, the trust income on hand atthe beginning of the accounting period, and in what form held, trust incomereceived during the accounting period, when and from what source, trust incomepaid out during the accounting period, when, to whom and for what purpose,trust income on hand at the end of the accounting period and how invested;

(e) That, without prior court authority, neither anyseller to, nor buyer from, the trustee of trust property during the accountingperiod was at the time of the sale or purchase:

(1) In the case of a corporate trustee, anaffiliate or any officer, employee, or nominee of the trust or of an affiliate;or

(2) In the case of a noncorporate trustee, arelative, partner, employer, employee or business associate,

but none ofthe provisions of this paragraph apply to purchases and sales made by brokersfor the trustee or to stock exchanges;

(f) A statement of unpaid claims with the reason forfailure to pay them, including a statement as to whether any estate orinheritance taxes have become due with regard to the trust property, and ifdue, whether paid;

(g) A brief summary of the account; and

(h) Such other facts as the court may by rule or courtorder require.

2. Except as otherwise provided in subsection 3,within 60 days after the end of each calendar year thereafter during the lifeof the trust, the testamentary trustee then in office shall file with the samecourt an intermediate account under oath showing corresponding facts regardingthe current accounting period.

3. A corporate trustee is not required to file theintermediate accounts specified in subsections 1 and 2. A corporate trusteeshall include the information specified in subsection 1 in the final accountfor the entire time for which the trustee administered the trust.

[3:135:1941; A 1949, 586; 1955, 21](NRS A 1983,1680; 1985, 245; 1999,2381)

NRS 165.045 Intermediateaccountings: Notice; hearing.

1. Every testamentary trustee who files anintermediate account in court shall, within 10 days after the filing, deliverto each known beneficiary a notice of the filing, and if there is to be nocourt hearing on the account, a summary of the account with an offer to deliverthe full account on demand, or if there is to be a court hearing on theaccount, a copy of the account. The delivery may be:

(a) By handing the notice and summary or full accountto the beneficiary personally, or to the beneficiarys guardian or attorney ofrecord; or

(b) By sending them by registered, certified orfirst-class mail to the beneficiary, guardian or attorney of record, at thelast known address of the addressee.

2. Any beneficiary or the trustees may petition thecourt for a hearing on any intermediate account, and the holding of such ahearing is in the discretion of the court. In the case of the thirdintermediate accounting, and every 3 years thereafter, the trustee shallpetition the court for a hearing on and approval of all unapproved accounts,and shall give each known beneficiary written notice of the petition at least10 days before the day of the hearing, in the manner prescribed for thedelivery of the copy of the account. The date of the hearing on a petition toapprove intermediate accounting must be at least 10 days after the latestaccount was filed. The notice by the trustee of the petition for a hearing onand approval of the account must inform the beneficiaries of the amount of feesto be requested by the trustee on the hearing, and the amount of other feeswhich the court will then be requested to allow.

[6:135:1941; 1931 NCL 7718.05](NRS A 1969, 95; 1999, 2382)(Substitutedin revision for NRS 165.070)

NRS 165.050 Finalaccounting: General requirements. Within 60days after the termination of a testamentary trust, the trustee, and in thecase of the transfer of the trusteeship because of the death, resignation,removal, dissolution, merger or consolidation of a sole trustee, the successorin interest of the old trustee, shall file with the court of the county wherethe will was admitted to probate a final account under oath, showing for theperiod since the filing of the last account the facts required by NRS 165.040 regarding intermediateaccountings, and in the case of termination of the trust, the distribution ofthe trust property which the accountant proposes to make.

[4:135:1941; 1931 NCL 7718.03](NRS A 1999, 2382)

NRS 165.055 Finalaccounting: Notice. At least 10 days beforethe hearing of a petition to approve a final accounting, the testamentary trusteeshall deliver to each beneficiary a copy of the account and a notice of thetime and place at which the account will be presented for approval, which maynot be earlier than 10 days after the account was filed. The delivery may beaccomplished in the same manner as with regard to the service of papers on theintermediate accounting. The notice must inform the beneficiaries of the amountof fees to be requested by the trustee in the petition for approval of theaccount, and the amount of other fees which the court will then be requested toallow.

[7:135:1941; 1931 NCL 7718.06](NRS A 1999, 2383)(Substitutedin revision for NRS 165.080)

NRS 165.060 Accountingof distribution of property; discharge of trustee. Within30 days after the distribution of the trust property by the testamentarytrustee, the trustee shall file in the court where the final account was fileda distributive account of the trust property which the trustee has distributedand the receipts of the distributees. The court shall, as soon as practicable,act upon the account and discharge the trustee if the distributive account isapproved.

[5:135:1941; 1931 NCL 7718.04](NRS A 1999, 2382)

NRS 165.090 Vouchers,cancelled checks or other documents supporting account; lost vouchers.

1. Except as provided in subsection 2, when anintermediate or final account is presented for consideration in court, thetestamentary trustee is not required to file vouchers with the court tosubstantiate payments made in the administration of the trust, but shall retainpossession of the vouchers and permit examination thereof by the court or anyperson interested in the estate.

2. The court on its own motion, or upon application exparte for good cause by any interested person, may order production forexamination of vouchers, cancelled checks or other documents that support anaccount.

3. If any vouchers are lost, or for other good reasoncannot be produced on settlement of an account, the payment may be proved bythe oath of one competent witness. If it is proved that vouchers for adisbursement have been lost or destroyed, that it is impossible to obtainduplicates, and that the expenses were paid in good faith and were legalcharges against the testamentary trust, the trustee must be allowed thoseexpenses.

[8:135:1941; 1931 NCL 7718.07](NRS A 1967, 871; 1999, 2383)

NRS 165.100 Representationof beneficiary. A beneficiary who is a minoror otherwise legally incapacitated, and also possible unborn or unascertainedbeneficiaries, may be represented in a testamentary trust accounting by acourt-appointed attorney or by competent living members of the class to whichthey do or would belong, or by a guardian ad litem, as the court deems proper.If the residence of any beneficiary is unknown, or there is doubt as to theexistence of one or more persons as beneficiaries, the court shall make suchprovision for service of notice and representation on the accounting as itbelieves proper.

[9:135:1941; 1931 NCL 7718.08](NRS A 1999, 2384)

NRS 165.110 Proceedingsin court. On or before the date of the hearingof a petition for approval of an intermediate or final account, thetestamentary trustee shall file an affidavit or certificate proving the timelydelivery to the known beneficiaries of the documents required by this chapteror by court order. The procedure as to filing of objections, examination of thetrustee and other witnesses, inspection of the trust property, adjournments,reference to a master or other representative of the court, amendment of theaccount and similar matters, is in the discretion of the court.

[10:135:1941; 1931 NCL 7718.09](NRS A 1999, 2384)

NRS 165.120 Approvalor disapproval by court; reopening. Theapproval by the court of a testamentary trustees account after due notice andservice of papers or representation as provided in this chapter, subject to theright of appeal, relieves the trustee and his sureties from liability to allbeneficiaries then known or in being, or who thereafter become known or inbeing, for all the trustees acts and omissions which are fully and accuratelydescribed in the account, including the then investment of the trust funds. Thecourt may disapprove the account and surcharge the trustee for any loss causedby a breach of trust committed by him. The account may be reopened by the courton petition of the trustee or a beneficiary, for amendment or revision, if itlater appears that the account is incorrect, either because of fraud ormistake. Court approvals or disapprovals of intermediate or final accountsshall be deemed final judgments insofar as the right of appeal is concerned. Noaccount may be reopened because of a mistake more than 1 year after itsapproval. No beneficiary may move for the reopening of any account because offraud more than 90 days after he discovers the existence of the fraud.

[11:135:1941; 1931 NCL 7718.10](NRS A 1999, 2384)

NONTESTAMENTARY TRUSTS

NRS 165.135 Accounts. The trustee of a nontestamentary trust shall, not lessoften than annually, furnish to each beneficiary who is currently entitled toreceive income pursuant to the terms of the trust, to each residuarybeneficiary who is then living, to each specific beneficiary then living whohas not received complete distribution, and to any surety on the bond of thetrustee of the trust an account showing:

1. The period which the account covers;

2. In a separate schedule:

(a) Additions to trust principal during the accountingperiod with the dates and sources of acquisition;

(b) Investments collected, sold or charged off duringthe accounting period;

(c) Investments made during the accounting period, withthe date, source and cost of each;

(d) Deductions from principal during the accountingperiod, with the date and purpose of each; and

(e) The trust principal, invested or uninvested, onhand at the end of the accounting period, reflecting the approximate marketvalue thereof;

3. In a separate schedule:

(a) Trust income on hand at the beginning of theaccounting period, and in what form held;

(b) Trust income received during the accounting period,when and from what source;

(c) Trust income paid out during the accounting period,when, to whom and for what purpose; and

(d) Trust income on hand at the end of the accountingperiod and how invested;

4. A statement of any unpaid claims with the reasonfor failure to pay them; and

5. A brief summary of the account.

(Added to NRS by 1967, 360; A 1991, 821; 1999, 2384)

GENERAL PROVISIONS

NRS 165.150 Dutiesof clerks and courts. The clerks of the districtcourts shall severally keep records of all trust inventories and accounts filedwith their respective courts. Those courts shall, upon learning that a trusteesubject to their respective jurisdictions has failed to perform any duty placedupon him by this chapter, issue a citation or order to the trustee requiringhim to perform that duty.

[14:135:1941; 1931 NCL 7718.13](NRS A 1999, 2385)

NRS 165.160 Powerof settlor. The provisions of this chaptershall have no application to nontestamentary trusts unless the settlor shallexpressly so declare in the instrument creating the trust. But no expression ofintent by any settlor shall affect the jurisdiction of the courts of this stateover inventories and accounts of trustees, insofar as such jurisdiction doesnot depend upon the provisions of this chapter.

[15:135:1941; 1931 NCL 7718.14]

NRS 165.170 Powerof beneficiary. Any beneficiary, if of fullage and sound mind, may, if acting upon full information, by written instrumentdelivered to the trustee, excuse the trustee as to such beneficiary fromperforming any of the duties imposed on him by this chapter or exempt thetrustee from liability to such beneficiary for failure to perform any of theduties imposed upon the trustee by the terms of this chapter.

[16:135:1941; 1931 NCL 7718.15]

NRS 165.180 Accountabilityof trustees at other times. This chapter doesnot abridge the power of any court of competent jurisdiction to requiretestamentary or nontestamentary trustees to file an inventory, to account, toexhibit the trust property, or to give beneficiaries information or theprivilege of inspection of trust records and papers, at times other than thoseprescribed in this chapter, or abridge the power of the court for cause shownto excuse a trustee from performing any or all of the duties imposed on him bythis chapter. This chapter does not preclude the trustee from accountingvoluntarily even if he is not required to do so by this chapter or by courtorder.

[17:135:1941; 1931 NCL 7718.16](NRS A 1999, 2385)

NRS 165.190 Enforcement. A beneficiary may petition the court having jurisdictionover the accountings, as prescribed in this chapter, for an order requiring thetrustee to perform the duties imposed upon him by this chapter.

[18:135:1941; 1931 NCL 7718.17](NRS A 1999, 2385)

NRS 165.200 Penaltiesfor violation of chapter. When a trustee failsto perform any of the duties imposed upon him by this chapter he may beremoved, his compensation may be reduced or forfeited, or other civil penaltyinflicted, in the discretion of the court.

[19:135:1941; 1931 NCL 7718.18]

NRS 165.210 Formof inventory and accounts; compensation of attorney for intermediate and finalaccounts.

1. The courts given jurisdiction over accountings bythis chapter may prescribe forms in which inventories and accounts shall bepresented.

2. An attorney for a trustee shall be entitled toreceive a reasonable compensation, to be allowed by the court, for servicesrendered to the trustee in the preparation and presentation of intermediate andfinal accounts.

[10.5:135:1941; added 1955, 21] + [20:135:1941; 1931NCL 7718.19]

NRS 165.220 Oaths. Whenever an oath or affirmation is required of a trusteeunder this chapter, it may be made in the case of a corporate trustee by anofficer of such corporate trustee, and in the case of cotrustees acting jointlyby any one of the cotrustees.

[21:135:1941; 1931 NCL 7718.20]

NRS 165.230 Charitabletrusts. This chapter shall apply to charitabletrusts. Documents required to be delivered to beneficiaries of such trustsshall be delivered to the Attorney General.

[22:135:1941; 1931 NCL 7718.21]

NRS 165.240 Uniformityof interpretation. This chapter shall be sointerpreted and construed as to effectuate its general purpose to make uniformthe law of those states which enact it.

[23:135:1941; 1931 NCL 7718.22]

 

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