NRS 163.188 Distribution of assets funding a separate trust without creation of separate trust.

239 words·~1 min read·/nv/chapter-163-trusts/163-188·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Unless specifically prohibited by the terms of a will or trust instrument and except as otherwise provided in subsection 2, if an instrument creating a separate trust requires the assets of the separate trust to be distributed to the beneficiary or beneficiaries of the trust immediately after the establishment of the separate trust as a result of the circumstances existing at the time the separate trust is to be established, the executor, trustee or any other party having possession of the property with which the separate trust will be funded may exercise discretion to make a distribution directly to the beneficiary or the beneficiaries of the separate trust.

2. An executor, trustee or any other party described in subsection 1 may exercise discretion rather than distributing the trust assets to the trustee of the separate trust if the transferring executor, trustee or any other party described in subsection 1 and the trustee of the separate trust are the same person.

3. The receipts of distribution provided to any beneficiary or beneficiaries in the manner described in this section shall be deemed to protect the executor, trustee or other person having possession of the property to the same extent that a receipt of distribution would have protected the executor, trustee or other person had the property been distributed by the trustee from the separate trust.