Senate Bill No. 55–Committee on Judiciary

 

Prefiled January 31, 2003

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Referred to Committee on Judiciary

 

SUMMARY—Revises provisions governing power of settlor and beneficiary of trust to alter certain statutory duties, liabilities, privileges and powers of trustee. (BDR 13‑874)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to trusts; revising provisions governing the power of a settlor and beneficiary of a trust to alter certain statutory duties, liabilities, privileges and powers of the trustee; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 163.160 is hereby amended to read as follows:

1-2  163.160  1.  The settlor of a trust affected by NRS 163.010 to

1-3  163.200, inclusive, may, by provision in the instrument creating the

1-4  trust if the trust was created by a writing, or by oral statement to the

1-5  trustee at the time of the creation of the trust if the trust was created

1-6  orally, or by an amendment of the trust if the settlor reserved the

1-7  power to amend the trust, relieve his trustee from any or all of the

1-8  duties, restrictions and liabilities which would otherwise be imposed

1-9  upon him by NRS 163.010 to 163.200, inclusive, or alter or deny to

1-10  his trustee any or all of the privileges and powers conferred upon the

1-11  trustee by NRS 163.010 to 163.200, inclusive, or add duties,

1-12  restrictions, liabilities, privileges or powers to those imposed or

1-13  granted by NRS 163.010 to 163.200, inclusive, but no act of the

1-14  settlor relieves a trustee from the duties, restrictions and liabilities

2-1  imposed upon him by NRS 163.030[, 163.040 and 163.050.] and

2-2  163.040.

2-3  2.  Except as otherwise provided in subsections 1 and 3, a

2-4  trustee may be relieved of liability for breach of trust by provisions

2-5  of the trust instrument.

2-6  3.  A provision of the trust instrument is not effective to relieve

2-7  a trustee of liability:

2-8  (a) For breach of trust committed intentionally, with gross

2-9  negligence, in bad faith, or with reckless indifference to the interest

2-10  of a beneficiary; or

2-11      (b) For any profit that he derives from a breach of trust.

2-12      Sec. 2.  NRS 163.170 is hereby amended to read as follows:

2-13      163.170  A beneficiary of a trust affected by NRS 163.010 to

2-14  163.200, inclusive, may, if of full legal capacity and acting upon full

2-15  information, by written instrument delivered to the trustee, relieve

2-16  the trustee as to that beneficiary from any or all of the duties,

2-17  restrictions and liabilities which would otherwise be imposed on the

2-18  trustee by NRS 163.010 to 163.200, inclusive, except as to the

2-19  duties, restrictions and liabilities imposed by NRS 163.030[,

2-20  163.040 and 163.050.] and 163.040. The beneficiary may release

2-21  the trustee from liability to him for past violations of any of the

2-22  provisions of NRS 163.010 to 163.200, inclusive.

 

2-23  H