2022 Nevada Revised Statutes
Chapter 669A - Family Trust Companies
NRS 669A.255 - Annual and final reports; allocation to income.
1. Except as otherwise provided in subsection 4, a family trust company or licensed family trust company, while acting as the fiduciary of a trust, shall provide an annual report to each beneficiary who is entitled to an account under the terms of the trust or applicable law for each year of the existence of the trust until the trust is terminated, at which time the family trust company shall provide to each such beneficiary a final report. The annual report or final report may be in the form of a report as described in subsection 2 or 6, an account as provided in chapter 165 of NRS or any other law applicable to the trust. An annual report or final report provided pursuant to this section is deemed to be an account for the purposes of chapter 165 of NRS.
2. A report that is provided pursuant to this section must, for the year immediately preceding the report, provide an accounting of:
(a) Each asset and liability of the trust and its current market value or amount, if known;
(b) Each disbursement of income or principal, including the amount of the disbursement and to whom the disbursement was made;
(c) All payments of compensation from any source to the family trust company or licensed family trust company or any other person for services rendered; and
(d) Any other transaction involving an asset of the trust.
3. A beneficiary who is entitled to a report pursuant to this section may waive his or her right to the report by submitting a written waiver to the family trust company or licensed family trust company. Any beneficiary who waives his or her right to a report may withdraw the waiver by submitting to the family trust company or licensed family trust company a written request for a report.
4. A family trust company or licensed family trust company is not required to provide a report pursuant to this section if the terms of the trust provide otherwise.
5. A family trust company or licensed family trust company may require a beneficiary who is entitled to receive confidential information pursuant to this section to execute a confidentiality agreement before providing the person with any confidential information.
6. In lieu of the information that a trustee is required to provide to a beneficiary pursuant to subsection 2, a trustee may provide to a beneficiary a statement indicating the accounting period and a financial report of the trust which is prepared by a certified public accountant and which summarizes the information required by paragraphs (a) to (d), inclusive, of subsection 2. Upon request, the trustee shall make all the information used in the preparation of the annual or final report available to each beneficiary who was provided a copy of the financial report pursuant to this subsection.
7. For the purposes of this chapter, information provided by a trustee to a beneficiary pursuant to subsection 6 is deemed an annual report.
8. A trustee may provide an annual report to a beneficiary via electronic mail or through a secure Internet website.
9. Notwithstanding the provisions of any other law to the contrary, any beneficiary of a trust administered by a family trust company or licensed family trust company not otherwise entitled to receive an account or annual report under the terms of the trust or applicable law shall have no right to demand an account or annual report of the trust.
10. A family trust company or licensed family trust company acting as trustee shall allocate to income the portion of compensation to the trustee and any person providing investment or custodial services to the trustee as determined by the family trust company or licensed family trust company, except as otherwise provided in:
(a) NRS 164.800;
(b) The trust;
(c) A court order;
(d) A nonjudicial settlement agreement; or
(e) A notice of proposed action.
(Added to NRS by 2011, 1813; A 2015, 1213)
