[Rev. 6/29/2024 3:06:35 PM--2023]

CHAPTER 153 - ADMINISTRATION OF TRUSTS; ESTATES FOR LIFE AND YEARS

NRS 153.010           Applicability of chapter.

NRS 153.020           Retention of jurisdiction by court after final distribution.

NRS 153.031           Petition by trustee or beneficiary concerning affairs of trust: Purposes of petition; contents; notice and hearing; additional relief.

NRS 153.041           Accounting by trustee.

NRS 153.050           Accountings by life tenants and tenants for years.

NRS 153.060           Petition for distribution of residue of trust estate, estate for life or estate for years: Notice.

NRS 153.070           Expenses and compensation of trustees.

NRS 153.080           Conclusiveness of order.

NRS 153.090           Declination or resignation of person named or designated trustee: Procedure.

NRS 153.100           Appointment to fill vacancy.

NRS 153.120           Bond of trustee.

NRS 153.130           Effect of power of appointment.

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      NRS 153.010  Applicability of chapter.  The provisions of this chapter govern fiduciaries acting under trusts, wills and court orders in estate proceedings, whether the estate has been distributed or proceedings are now pending.

      [Part 244:107:1941; A 1947, 38; 1943 NCL § 9882.244]—(NRS A 1999, 2351)

      NRS 153.020  Retention of jurisdiction by court after final distribution.

      1.  If a life estate or estate for years is created by or under any will to continue after distribution of the estate, the court does not lose jurisdiction of the estate, life estate or estate for years by final distribution of the estate, but retains jurisdiction of it until the distribution of the residue of the life estate or estate for years to those entitled to it is complete. Proof of distribution of the residue may be made upon petition of any person entitled to share in the distribution of the life estate or estate for years, which terminates the jurisdiction of the court upon decree of the court. The court does not retain jurisdiction over a testamentary trust created by or under a will after distribution of that portion of the estate to such a testamentary trust.

      2.  Notwithstanding the provisions of subsection 1, before the entry of an order granting final distribution of the estate, the court may consider a petition filed by the trustee or any beneficiary of the testamentary trust requesting the court to retain jurisdiction of the testamentary trust and, upon good cause shown, the court may order such continued jurisdiction. Such a petition must be filed with the clerk of the court before the hearing on the petition for final distribution of the estate and must be served on all interested persons in accordance with NRS 155.010.

      3.  This section must not be construed to limit the ability of an interested person to subsequently seek submission of a testamentary trust to the jurisdiction of the court pursuant to NRS 164.010.

      [Part 244:107:1941; A 1947, 38; 1943 NCL § 9882.244]—(NRS A 1959, 512; 1977, 569; 1983, 263, 669; 1999, 2352; 2017, 1682)

      NRS 153.031  Petition by trustee or beneficiary concerning affairs of trust: Purposes of petition; contents; notice and hearing; additional relief.

      1.  A trustee or beneficiary may petition the court regarding any aspect of the affairs of the trust, including:

      (a) Determining the existence of the trust;

      (b) Determining the construction of the trust instrument;

      (c) Determining the existence of an immunity, power, privilege, right or duty;

      (d) Determining the validity of a provision of the trust;

      (e) Ascertaining beneficiaries and determining to whom property is to pass or be delivered upon final or partial termination of the trust, to the extent not provided in the trust instrument;

      (f) Settling the accounts and reviewing the acts of the trustee, including the exercise of discretionary powers;

      (g) Instructing the trustee;

      (h) Subject to the requirements of chapter 165 of NRS, compelling the trustee to report information about the trust or account, to the beneficiary;

      (i) Granting powers to the trustee;

      (j) Fixing or allowing payment of the trustee’s compensation, or reviewing the reasonableness of the trustee’s compensation;

      (k) Appointing or removing a trustee;

      (l) Accepting the resignation of a trustee;

      (m) Compelling redress of a breach of the trust;

      (n) Approving or directing the modification or termination of the trust;

      (o) Approving or directing the combination or division of trusts;

      (p) Amending or conforming the trust instrument in the manner required to qualify the estate of a decedent for the charitable estate tax deduction under federal law, including the addition of mandatory requirements for a charitable-remainder trust;

      (q) Compelling compliance with the terms of the trust or other applicable law; and

      (r) Permitting the division or allocation of the aggregate value of community property assets in a manner other than on a pro rata basis.

      2.  A petition under this section must state the grounds of the petition and the name and address of each interested person, including the Attorney General if the petition relates to a charitable trust, and the relief sought by the petition. Except as otherwise provided in this chapter, the clerk shall set the petition for hearing and the petitioner shall give notice for the period and in the manner provided in NRS 155.010. The court may order such further notice to be given as may be proper.

      3.  If the court grants any relief to the petitioner, the court may, in its discretion, order any or all of the following additional relief if the court determines that such additional relief is appropriate to redress or avoid an injustice:

      (a) Order a reduction in the trustee’s compensation.

      (b) Order the trustee to pay to the petitioner or any other party all reasonable costs incurred by the party to adjudicate the affairs of the trust pursuant to this section, including, without limitation, reasonable attorney’s fees. The trustee may not be held personally liable for the payment of such costs unless the court determines that the trustee was negligent in the performance of or breached his or her fiduciary duties.

      (Added to NRS by 1999, 2351; A 2007, 897; 2009, 1634; 2011, 1458; 2015, 3532; 2017, 1683)

      NRS 153.041  Accounting by trustee.  The trustee of a testamentary trust shall account in accordance with the provisions of chapter 165 of NRS. This section must not be interpreted to abridge the authority of a court having jurisdiction over a testamentary trust pursuant to NRS 153.020 or 164.010 to order a trustee of a testamentary trust to account, upon good cause, to the persons and in the manner ordered by the court.

      (Added to NRS by 1999, 2351; A 2017, 1684)

      NRS 153.050  Accountings by life tenants and tenants for years.

      1.  If by law, or by the terms of an instrument creating a life estate or an estate for years, the tenant is required to account for use of the property of the estate, then the provisions of this chapter concerning accounting by a trustee apply to the life tenant and tenant for years and, after death, to the personal representative.

      2.  If no obligation to account during his or her tenancy is imposed upon the tenant, nevertheless such of the provisions of this chapter as apply to accounting by a trustee apply to the personal representatives of the tenant, to the extent of determining the residue of the estate.

      [Part 245:107:1941; 1931 NCL § 9882.245]—(NRS A 1959, 513; 1999, 2352)

      NRS 153.060  Petition for distribution of residue of trust estate, estate for life or estate for years: Notice.  If a petition is filed for distribution of the residue of the trust estate, estate for life or estate for years to those entitled thereto, the clerk shall set the petition for hearing and the petitioner shall give notice of the hearing for the period and in the manner provided in NRS 155.010.

      [Part 245:107:1941; 1931 NCL § 9882.245]—(NRS A 1999, 2352)

      NRS 153.070  Expenses and compensation of trustees.  The expenses and compensation of a trustee of a testamentary trust must initially be governed by the terms of the will which created the testamentary trust or as otherwise ordered by the court at the time the testamentary trust is established. Thereafter, subject to any contrary terms of the testamentary trust or an order of the court, the court shall allow the trustee his or her proper expenses and such compensation for services as are just and reasonable. Where there are several trustees, compensation must be apportioned among the trustees according to the respective services rendered, and such compensation may be a fixed yearly compensation for each trustee, a set amount for the term of service, an hourly rate for services rendered or pursuant to a standard schedule of fees. The provisions of this section must not be interpreted to abridge the authority of a court having jurisdiction over a testamentary trust pursuant to NRS 153.020 or 164.010 to review and settle the expenses and compensation of the trustee of a testamentary trust upon the petition of any interested person.

      [246:107:1941; 1931 NCL § 9882.246]—(NRS A 1987, 511; 2017, 1684)

      NRS 153.080  Conclusiveness of order.  An order entered under the provisions of this chapter, when it becomes final, is conclusive upon all interested persons, whether or not they are competent or in being.

      [247:107:1941; 1931 NCL § 9882.247]—(NRS A 1999, 2353)

      NRS 153.090  Declination or resignation of person named or designated trustee: Procedure.

      1.  A person named or designated as a trustee of a testamentary trust in a will may, at any time before distribution of any of the estate to the person, decline to act as trustee, and an order of court must be entered accepting the resignation, but the declination of any person who has qualified as trustee may not be accepted by the court unless the testamentary trust is subject to ongoing court jurisdiction pursuant to NRS 153.020 and a petition to accept the declination is filed in the proceeding for administration of the testamentary trust. Upon the filing of the petition, the clerk shall set it for hearing and the petitioner shall give notice to all interested persons for the period and in the manner provided in NRS 155.010.

      2.  A person named or designated as a trustee of a testamentary trust in a will that is no longer subject to ongoing court jurisdiction may resign as trustee in accordance with the terms of the testamentary trust or will which created the testamentary trust or, if the testamentary trust or will is silent on the matter, may seek court approval of such resignation in conjunction with a petition under NRS 164.010 or 164.030.

      3.  In accepting a declination or resignation, the court may enter and enforce any order which may be necessary for the preservation of the estate.

      [248:107:1941; 1931 NCL § 9882.248]—(NRS A 1999, 2353; 2017, 1684)

      NRS 153.100  Appointment to fill vacancy.

      1.  The court in which the administration is pending may, at any time before final distribution of the trust, appoint a qualified person to fill a vacancy in the office of trustee under the will, whether resulting from death, declination, resignation, removal or otherwise, if the appointment is necessary to carry out the trust. A person who is named in the will to fill the vacancy has priority for appointment.

      2.  The appointment may be made by the court upon the petition of an interested person. Upon the filing of the petition, the clerk shall set it for hearing and the petitioner shall give notice to all interested persons for the period and in the manner provided in NRS 155.010.

      3.  The court may appoint a temporary trustee without notice if necessary to preserve the trust estate.

      [249:107:1941; 1931 NCL § 9882.249]—(NRS A 1999, 2353)

      NRS 153.120  Bond of trustee.  The court may require a person appointed as trustee, before acting as a trustee, to give a bond as is required of a personal representative. If a bond is required, the trustee must be allowed the cost of the bond out of the trust estate.

      [251:107:1941; 1931 NCL § 9882.251]—(NRS A 1999, 2353)

      NRS 153.130  Effect of power of appointment.  Except as otherwise provided in a will establishing a testamentary trust, a person holding a power of appointment pursuant to a testamentary trust does not owe a fiduciary duty to any person and is not liable to any person with respect to the exercise or nonexercise of the power of appointment.

      (Added to NRS by 2011, 1458)