Title 13

NRS 164.765 Determination of compliance with prudent investor rule. Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight. (Added to NRS by 2003, 1968)

NRS 164.770 Delegation of functions by trustee; standard of care owed by agent; trustee immunity from liability; jurisdiction over agent. 1. A trustee may delegate functions of investment and management that a prudent trustee of comparable skills could properly delegate under the…

NRS 164.775 Terms and language of trust which authorize certain investments or strategies. The following terms or comparable language in the terms of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under NRS 164.700 to 164.775, inclu…

NRS 164.780 Short title. NRS 164.700, subsection 2 of NRS 164.720 and NRS 164.780 to 164.925, inclusive, may be cited as the Uniform Principal and Income Act (1997). (Added to NRS by 2003, 1969)

NRS 164.785 Definitions. As used in NRS 164.780 to 164.925, inclusive: 1. “Accounting period” means a calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of a calendar year or other 12-month period that begins when an income intere…

NRS 164.790 Allocation of receipt or disbursement to principal when terms of trust and provisions of NRS do not provide rule. In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of NRS 164.800 to 164.820, in…

NRS 164.795 Adjustment between principal and income; consideration of factors; adjustment prohibited under certain circumstances; release of power to adjust; effect of terms of trust that limit power to adjust. 1. A trustee may adjust between principal and income to the extent th…

NRS 164.796 Circumstances under which trustee authorized to convert trust into unitrust; effect of such conversion on certain terms of trust; liability of trustee or disinterested person. 1. Unless expressly prohibited by the trust instrument, a trustee may convert a trust into a…

NRS 164.797 Administration of unitrust: Duties of trustee; valuation of assets of trust. After a trust is converted into a unitrust: 1. A trustee shall follow an investment policy seeking a total return for the investments held by the trust whether or not the return is derived fr…

NRS 164.798 Administration of unitrust: Powers of trustee; manner of distributions. 1. A trustee of a unitrust may, in the trustee’s discretion, determine: (a) The effective date of a conversion to a unitrust; (b) The provisions for prorating a unitrust distribution for a benefic…

NRS 164.799 Trustee or beneficiary authorized to petition court to take certain actions concerning unitrust. A trustee or a beneficiary of a unitrust may petition the court to: 1. Select an income distribution percentage different from 3 to 5 percent. 2. Provide for a distributio…

NRS 164.800 Applicable rules after death of decedent or end of income interest in trust. After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: 1. A fiduciary of an estate or of a terminating income interest shall …

NRS 164.805 Distribution of net income to beneficiaries; rules for determining share of net income. 1. Each beneficiary described in subsection 4 of NRS 164.800 is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed prin…

NRS 164.810 Date on which income interest begins; date on which asset becomes subject to trust or successive income interest; date on which income interest ends. 1. An income beneficiary is entitled to net income from the date on which the income interest begins. An income intere…

NRS 164.815 Allocation of certain income receipts and disbursements; due dates for certain payments and distributions. 1. A trustee shall allocate an income receipt or disbursement other than one to which subsection 1 of NRS 164.800 applies to principal if its due date occurs bef…

NRS 164.820 Payment of undistributed income upon end of mandatory income interest; prorating final payment upon end of obligation to pay fixed annuity or fixed fraction of value of trust’s assets. 1. As used in this section, “undistributed income” means net income received before…

NRS 164.825 Allocation of money received from entity to income; allocation of receipts from entity to principal; determination of money as return of capital; reliance upon financial statements and other information about character of distribution or source of funds from which dis…

NRS 164.830 Allocation of amount received as distribution of income to income; allocation of distribution of principal to principal; purchase of interest in trust that is investment entity. A trustee shall allocate to income an amount received as a distribution of income from a t…

NRS 164.835 Accounting separately for business or other activity. 1. If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part …

NRS 164.840 Allocation of assets, money, property and other receipts to principal. A trustee shall allocate to principal: 1. To the extent not allocated to income under NRS 164.780 to 164.925, inclusive, assets received from a transferor during the transferor’s lifetime, a decede…

NRS 164.845 Allocation of receipts from rental property to income; treatment of refundable deposit. To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or persona…

NRS 164.850 Allocation of interest on obligation to pay money to trustee to income; allocation of amount received from disposition of certain obligations to principal; applicability of provisions. 1. An amount received as interest, whether determined at a fixed, variable or float…

NRS 164.855 Allocation of proceeds of life insurance policy and certain contracts to principal; allocation of dividends on insurance policy to income or principal. 1. Except as otherwise provided in this section, a trustee shall allocate to principal the proceeds of a life insura…

NRS 164.860 Allocation of entire amount to principal if allocation between principal and income under certain circumstances is insubstantial. If a trustee determines that an allocation between principal and income required by NRS 164.865, 164.870, 164.875, 164.880 or 164.895 is i…

NRS 164.865 Allocation of certain payments received because of services rendered or property transferred to payor in exchange for future payments to income or principal, or both; certain exceptions for trusts that qualify for marital deduction under federal law. 1. As used in thi…

NRS 164.870 Allocation of receipts from liquidating assets to income and principal. 1. As used in this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term i…

NRS 164.875 Allocation of receipts from interest in minerals to income or to income and principal; allocation of receipts from interest in water to income or to income and principal; applicability. 1. To the extent that a trustee accounts for receipts from an interest in minerals…

NRS 164.880 Allocation of net receipts from sale of timber and related products to income or principal, or both; applicability. 1. To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate …

NRS 164.885 Request of spouse if marital deduction is allowed and amounts transferred from principal to income and distributed are insufficient to obtain marital deduction; proceeds from sale or disposition of assets generally principal. 1. If a marital deduction is allowed for a…

NRS 164.890 Allocation of receipts from and disbursements made in connection with transactions in derivatives to principal; allocation of amount received for granting certain options to principal. 1. As used in this section, “derivative” means a contract of financial instrument o…

NRS 164.895 Allocation from proceeds of collateral financial assets to income and principal; allocation of payments in exchange for interest in asset-backed security to principal or to principal and income. 1. As used in this section, “asset-backed security” means an asset whose …

NRS 164.900 Disbursements required to be made from income; reduction of amount charged against income. 1. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which paragraph (b) or (c) of subsection 2 of NRS 164.800 applie…

NRS 164.905 Disbursements required to be made from principal. 1. A trustee shall make the following disbursements from principal: (a) The remaining portion of the disbursements described in paragraph (a) of subsection 1 of NRS 164.900; (b) All the trustee’s compensation calculate…

NRS 164.910 Transfer of net cash receipts from principal asset subject to depreciation to principal. 1. As used in this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion or gradual obsolescence of a fixed asset having a useful life of more tha…

NRS 164.915 Transfer of amount from income to principal to make certain principal disbursements. 1. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more acc…

NRS 164.920 Payment of taxes required to be paid by trustee. 1. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. 2. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, e…

NRS 164.925 Adjustments between principal and income to offset shifting economic interests or tax benefits between income beneficiaries and remainder beneficiaries; reimbursement of principal if estate taxes are increased and income taxes are decreased under certain circumstances…

NRS 164.930 Enforceability of certain arbitration provisions; presumption in favor of binding arbitration; appointment of guardian ad litem; contents of arbitration provisions. 1. A provision in a will or trust instrument requiring the arbitration of disputes other than disputes …

NRS 164.940 Nonjudicial settlement agreements: Enforceability; when void; matters that may be resolved. 1. Except as otherwise provided in this section, a settlement agreement entered into by all indispensable parties, as described in subsection 1 of NRS 164.942 is enforceable wi…

NRS 164.942 Nonjudicial settlement agreements: When effective; providing objections; notice of proposed action; failure to object constitutes acceptance; petitioning court for approval. 1. Except as otherwise provided in this section, a nonjudicial settlement agreement is effecti…

NRS 164.950 Distribution by trustee of community property in nontestamentary trust established by married settlors. 1. If two settlors who are married establish a nontestamentary trust jointly, and the trust provides for the pecuniary or fractional division of the community prope…

NRS 164.960 Applicability of NRS 111.781 to transfers of property made pursuant to trust. The provisions of NRS 111.781 concerning the revocation of certain transfers based upon divorce or annulment apply to transfers of property made pursuant to a trust. (Added to NRS by 2011, 1…