[Rev. 11/21/2013 9:52:42 AM--2013]

CHAPTER 165 - TRUSTEES’ ACCOUNTING (UNIFORM ACT)

TITLE AND DEFINITIONS

NRS 165.010           Short title.

NRS 165.020           Definitions.

TESTAMENTARY TRUSTS

NRS 165.030           Inventory.

NRS 165.040           Intermediate accountings: General requirements; exceptions.

NRS 165.045           Intermediate accountings: Notice; hearing.

NRS 165.050           Final accounting: General requirements.

NRS 165.055           Final accounting: Notice.

NRS 165.060           Accounting of distribution of property; discharge of trustee.

NRS 165.090           Vouchers, cancelled checks or other documents supporting account; lost vouchers.

NRS 165.100           Representation of beneficiary.

NRS 165.110           Proceedings in court.

NRS 165.120           Approval or disapproval by court; reopening.

NONTESTAMENTARY TRUSTS

NRS 165.122           Definitions.

NRS 165.124           “Accounting period” defined.

NRS 165.126           “Broad power of appointment” defined.

NRS 165.128           “Current beneficiary” defined.

NRS 165.129           “Distribution beneficiary” defined.

NRS 165.132           “Remainder beneficiary” defined.

NRS 165.134           “Remote beneficiary” defined.

NRS 165.135           Accounts.

NRS 165.137           Duties of trustee with regard to providing account; circumstances when account deemed approved by beneficiary.

NRS 165.139           Request for annual account by beneficiary; liability for failure to provide required account.

NRS 165.141           Written demand for account by beneficiary; acceptance or rejection of demand by trustee.

NRS 165.143           Petition to review trustee’s rejection of written demand for account; notice; hearing.

NRS 165.145           Providing confidential account; review of confidential account; order granting relief to beneficiary.

NRS 165.147           Requirement to provide copy of trust instrument to beneficiary entitled to receive account.

NRS 165.149           Persons with power of appointment.

GENERAL PROVISIONS

NRS 165.150           Duties of clerks and courts.

NRS 165.160           Trust instrument.

NRS 165.170           Power of beneficiary.

NRS 165.180           Accountability of trustees at other times.

NRS 165.190           Enforcement.

NRS 165.200           Penalties for violation of chapter.

NRS 165.210           Form of inventory and accounts; compensation of attorney for intermediate and final accounts.

NRS 165.220           Oaths.

NRS 165.230           Charitable trusts.

NRS 165.240           Uniformity of interpretation.

_________

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TITLE AND DEFINITIONS

      NRS 165.010  Short title.  This chapter shall be cited as the Uniform Trustees’ Accounting Act.

      [24:135:1941; 1931 NCL § 7718.23]

      NRS 165.020  Definitions.

      1.  As used in this chapter:

      (a) “Affiliate” means any person directly or indirectly controlling or controlled by another person, or any person under direct or indirect common control by another person. It includes any person with whom a trustee has an express or implied agreement regarding the purchase of trust investments by each from the other, directly or indirectly.

      (b) “Beneficiary” includes a beneficiary under the trust, a person who is entitled to the trust capital at the termination of the trust and a surety on the bond of the trustee.

      (c) “Nontestamentary trustee” means a trustee serving under a trust created in this state otherwise than by a will, or such a trust administered in this state, whether the trustee was appointed by the settlor or by a court or other authority.

      (d) “Relative” means a spouse, ancestor, descendant, brother or sister.

      (e) “Settlor” includes the creator of a testamentary as well as a nontestamentary trust.

      (f) “Testamentary trustee” means a trustee serving under a trust created by a will of a testator domiciled in this state at the time of the testator’s death, whose will has been admitted to probate in this state, whether the trustee was appointed by the testator or by a court or other authority.

      (g) “Trustee” includes trustees, a corporate as well as a natural person, a successor or substitute trustee, and the successor in interest of a deceased sole trustee.

      2.  This chapter does not apply to resulting trusts, constructive trusts, business trusts where certificates of beneficial interest are issued to the beneficiaries, investment trusts, voting trusts, insurance trusts prior to the death of the insured, trusts in the nature of mortgages or pledges, trusts created by judgment or decree of a federal court or a state court other than the district court acting in probate matters, liquidation trusts, or trust for the sole purpose of paying dividends, interest or interest coupons, salaries, wages or pensions.

      [1:135:1941; 1931 NCL § 7718]—(NRS A 1999, 2380)

TESTAMENTARY TRUSTS

      NRS 165.030  Inventory.  Within 75 days after a testamentary trustee receives possession of trust property, the trustee shall file with the court where the will was admitted to probate an inventory under oath, showing by items all the trust property which has come to the possession or knowledge of the trustee.

      [2:135:1941; 1931 NCL § 7718.01]—(NRS A 1975, 1781; 1999, 2381)

      NRS 165.040  Intermediate accountings: General requirements; exceptions.

      1.  Except as otherwise provided in subsection 3, within 60 days after the end of the calendar year in which the testamentary trustee had a duty to file an inventory, as prescribed in NRS 165.030, the testamentary trustee shall file with the court of the county where the will was admitted to probate an intermediate account under oath covering the year and showing:

      (a) The period which the account covers;

      (b) The names and addresses of the living beneficiaries known to the trustee, with a statement as to those known to be minors or incapacitated persons, a description of any possible unborn or unascertained beneficiaries, and the name of the surety or sureties on the trustee’s bond with the amount of the bond;

      (c) In a separate schedule, additions to trust principal during the accounting period with the dates and sources of acquisition, investments collected, sold or charged off during the accounting period, investments made during the accounting period, with the date, source and cost of each, deductions from principal during the accounting period, with the date and purpose of each, and the trust principal, invested or uninvested, on hand at the end of the accounting period, reflecting the approximate market value thereof;

      (d) In a separate schedule, the trust income on hand at the beginning of the accounting period, and in what form held, trust income received during the accounting period, when and from what source, trust income paid out during the accounting period, when, to whom and for what purpose, trust income on hand at the end of the accounting period and how invested;

      (e) That, without prior court authority, neither any seller to, nor buyer from, the trustee of trust property during the accounting period was at the time of the sale or purchase:

             (1) In the case of a corporate trustee, an affiliate or any officer, employee, or nominee of the trust or of an affiliate; or

             (2) In the case of a noncorporate trustee, a relative, partner, employer, employee or business associate,

Ê but none of the provisions of this paragraph apply to purchases and sales made by brokers for the trustee or to stock exchanges;

      (f) A statement of unpaid claims with the reason for failure to pay them, including a statement as to whether any estate or inheritance taxes have become due with regard to the trust property, and if due, whether paid;

      (g) A brief summary of the account; and

      (h) Such other facts as the court may by rule or court order require.

      2.  Except as otherwise provided in subsection 3, within 60 days after the end of each calendar year thereafter during the life of the trust, the testamentary trustee then in office shall file with the same court an intermediate account under oath showing corresponding facts regarding the current accounting period.

      3.  A corporate trustee is not required to file the intermediate accounts specified in subsections 1 and 2. A corporate trustee shall include the information specified in subsection 1 in the final account for the entire time for which the trustee administered the trust.

      [3:135:1941; A 1949, 586; 1955, 21]—(NRS A 1983, 1680; 1985, 245; 1999, 2381)

      NRS 165.045  Intermediate accountings: Notice; hearing.

      1.  Every testamentary trustee who files an intermediate account in court shall, within 10 days after the filing, deliver to each known beneficiary a notice of the filing, and if there is to be no court hearing on the account, a summary of the account with an offer to deliver the full account on demand, or if there is to be a court hearing on the account, a copy of the account. The delivery may be:

      (a) By handing the notice and summary or full account to the beneficiary personally, or to the beneficiary’s guardian or attorney of record; or

      (b) By sending them by registered, certified or first-class mail to the beneficiary, guardian or attorney of record, at the last known address of the addressee.

      2.  Any beneficiary or the trustees may petition the court for a hearing on any intermediate account, and the holding of such a hearing is in the discretion of the court. In the case of the third intermediate accounting, and every 3 years thereafter, the trustee shall petition the court for a hearing on and approval of all unapproved accounts, and shall give each known beneficiary written notice of the petition at least 10 days before the day of the hearing, in the manner prescribed for the delivery of the copy of the account. The date of the hearing on a petition to approve intermediate accounting must be at least 10 days after the latest account was filed. The notice by the trustee of the petition for a hearing on and approval of the account must inform the beneficiaries of the amount of fees to be requested by the trustee on the hearing, and the amount of other fees which the court will then be requested to allow.

      [6:135:1941; 1931 NCL § 7718.05]—(NRS A 1969, 95; 1999, 2382)—(Substituted in revision for NRS 165.070)

      NRS 165.050  Final accounting: General requirements.  Within 60 days after the termination of a testamentary trust, the trustee, and in the case of the transfer of the trusteeship because of the death, resignation, removal, dissolution, merger or consolidation of a sole trustee, the successor in interest of the old trustee, shall file with the court of the county where the will was admitted to probate a final account under oath, showing for the period since the filing of the last account the facts required by NRS 165.040 regarding intermediate accountings, and in the case of termination of the trust, the distribution of the trust property which the accountant proposes to make.

      [4:135:1941; 1931 NCL § 7718.03]—(NRS A 1999, 2382)

      NRS 165.055  Final accounting: Notice.  At least 10 days before the hearing of a petition to approve a final accounting, the testamentary trustee shall deliver to each beneficiary a copy of the account and a notice of the time and place at which the account will be presented for approval, which may not be earlier than 10 days after the account was filed. The delivery may be accomplished in the same manner as with regard to the service of papers on the intermediate accounting. The notice must inform the beneficiaries of the amount of fees to be requested by the trustee in the petition for approval of the account, and the amount of other fees which the court will then be requested to allow.

      [7:135:1941; 1931 NCL § 7718.06]—(NRS A 1999, 2383)—(Substituted in revision for NRS 165.080)

      NRS 165.060  Accounting of distribution of property; discharge of trustee.  Within 30 days after the distribution of the trust property by the testamentary trustee, the trustee shall file in the court where the final account was filed a distributive account of the trust property which the trustee has distributed and the receipts of the distributees. The court shall, as soon as practicable, act upon the account and discharge the trustee if the distributive account is approved.

      [5:135:1941; 1931 NCL § 7718.04]—(NRS A 1999, 2382)

      NRS 165.090  Vouchers, cancelled checks or other documents supporting account; lost vouchers.

      1.  Except as provided in subsection 2, when an intermediate or final account is presented for consideration in court, the testamentary trustee is not required to file vouchers with the court to substantiate payments made in the administration of the trust, but shall retain possession of the vouchers and permit examination thereof by the court or any person interested in the estate.

      2.  The court on its own motion, or upon application ex parte for good cause by any interested person, may order production for examination of vouchers, cancelled checks or other documents that support an account.

      3.  If any vouchers are lost, or for other good reason cannot be produced on settlement of an account, the payment may be proved by the oath of one competent witness. If it is proved that vouchers for a disbursement have been lost or destroyed, that it is impossible to obtain duplicates, and that the expenses were paid in good faith and were legal charges against the testamentary trust, the trustee must be allowed those expenses.

      [8:135:1941; 1931 NCL § 7718.07]—(NRS A 1967, 871; 1999, 2383)

      NRS 165.100  Representation of beneficiary.  A beneficiary who is a minor or otherwise legally incapacitated, and also possible unborn or unascertained beneficiaries, may be represented in a testamentary trust accounting by a court-appointed attorney or by competent living members of the class to which they do or would belong, or by a guardian ad litem, as the court deems proper. If the residence of any beneficiary is unknown, or there is doubt as to the existence of one or more persons as beneficiaries, the court shall make such provision for service of notice and representation on the accounting as it believes proper.

      [9:135:1941; 1931 NCL § 7718.08]—(NRS A 1999, 2384)

      NRS 165.110  Proceedings in court.  On or before the date of the hearing of a petition for approval of an intermediate or final account, the testamentary trustee shall file an affidavit or certificate proving the timely delivery to the known beneficiaries of the documents required by this chapter or by court order. The procedure as to filing of objections, examination of the trustee and other witnesses, inspection of the trust property, adjournments, reference to a master or other representative of the court, amendment of the account and similar matters, is in the discretion of the court.

      [10:135:1941; 1931 NCL § 7718.09]—(NRS A 1999, 2384)

      NRS 165.120  Approval or disapproval by court; reopening.  The approval by the court of a testamentary trustee’s account after due notice and service of papers or representation as provided in this chapter, subject to the right of appeal, relieves the trustee and the sureties of the trustee from liability to all beneficiaries then known or in being, or who thereafter become known or in being, for all the trustee’s acts and omissions which are fully and accurately described in the account, including the then investment of the trust funds. The court may disapprove the account and surcharge the trustee for any loss caused by a breach of trust committed by him or her. The account may be reopened by the court on petition of the trustee or a beneficiary, for amendment or revision, if it later appears that the account is incorrect, either because of fraud or mistake. Court approvals or disapprovals of intermediate or final accounts shall be deemed final judgments insofar as the right of appeal is concerned. No account may be reopened because of a mistake more than 1 year after its approval. No beneficiary may move for the reopening of any account because of fraud more than 90 days after the beneficiary discovers the existence of the fraud.

      [11:135:1941; 1931 NCL § 7718.10]—(NRS A 1999, 2384)

NONTESTAMENTARY TRUSTS

      NRS 165.122  Definitions.  As used in NRS 165.122 to 165.149, inclusive, unless the context otherwise requires, the words and terms defined in NRS 165.124 to 165.134, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2011, 1471)

      NRS 165.124  “Accounting period” defined.  “Accounting period” means the period for which the trustee is accounting, and except as otherwise provided in this section, commencing with the first day following the previous accounting period and ending on the date specified by the trustee or on the date specified by the court if the account is ordered by the court. If the account is an initial account, the account commences on the day the trustee became the trustee.

      (Added to NRS by 2011, 1471)

      NRS 165.126  “Broad power of appointment” defined.  “Broad power of appointment” means a power of appointment held by a person, commonly referred to as a power holder, that can be exercised in favor of:

      1.  The power holder, without any restriction or limitation; or

      2.  Any person other than one or more of the following:

      (a) The power holder;

      (b) The power holder’s estate;

      (c) The power holder’s creditors; or

      (d) The creditors of the power holder’s estate.

      (Added to NRS by 2011, 1471)

      NRS 165.128  “Current beneficiary” defined.  “Current beneficiary” means a distribution beneficiary to whom or for whose benefit the trustee is authorized or required to make distributions of income or principal at any time during the accounting period.

      (Added to NRS by 2011, 1472)

      NRS 165.129  “Distribution beneficiary” defined.  “Distribution beneficiary” has the meaning ascribed to it in NRS 163.415.

      (Added to NRS by 2011, 1472)

      NRS 165.132  “Remainder beneficiary” defined.  “Remainder beneficiary” means a beneficiary who will become a current beneficiary upon the death of an existing current beneficiary or upon the occurrence of some other event that may occur during the beneficiary’s lifetime, regardless of whether the beneficiary’s share is subject to elimination under a power of appointment other than a broad power of appointment.

      (Added to NRS by 2011, 1472)

      NRS 165.134  “Remote beneficiary” defined.  “Remote beneficiary” means a beneficiary who may become a current beneficiary upon the death of two or more persons or upon the occurrence of some other event that cannot possibly occur during the beneficiary’s lifetime.

      (Added to NRS by 2011, 1472)

      NRS 165.135  Accounts.

      1.  The trustee of a nontestamentary trust shall furnish to each beneficiary an account in accordance with the provisions of NRS 165.122 to 165.149, inclusive.

      2.  At a minimum, the trustee shall furnish an account to each beneficiary in accordance with the terms and conditions stated in the trust instrument. The cost of each account must be allocated to income and principal as provided in the trust instrument.

      3.  Except as otherwise provided in this section, an account provided by a trustee to a beneficiary who is entitled to an account pursuant to NRS 165.122 to 165.149, inclusive, must include:

      (a) A statement indicating the accounting period;

      (b) With respect to the trust principal:

             (1) The trust principal held at the beginning of the accounting period, and in what form held, and the approximate market value thereof at the beginning of the accounting period;

             (2) Additions to the trust principal during the accounting period, with the dates and sources of acquisition;

             (3) Investments collected, sold or charged off during the accounting period;

             (4) Investments made during the accounting period, with the date, source and cost of each investment;

             (5) Any deductions from the trust principal during the accounting period, with the date and purpose of each deduction; and

             (6) The trust principal, invested or uninvested, on hand at the end of the accounting period, reflecting the approximate market value thereof at that time;

      (c) With respect to trust income, the trust income:

             (1) On hand at the beginning of the accounting period, and in what form held;

             (2) Received during the accounting period, when and from what source;

             (3) Paid out during the accounting period, when, to whom and for what purpose; and

             (4) On hand at the end of the accounting period and how invested;

      (d) A statement of unpaid claims with the reason for failure to pay them; and

      (e) A brief summary of the account.

      4.  In lieu of the information required to be provided by a trustee to a beneficiary pursuant to subsection 3, a trustee may provide to such 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 (b) to (e), inclusive, of subsection 3. Upon request, the trustee shall make all the information used in the preparation of the financial report available to each beneficiary who was provided a copy of the financial report.

      5.  For the purposes of NRS 165.122 to 165.149, inclusive, the information provided by a trustee to a beneficiary pursuant to subsection 4 shall be deemed to be an account.

      (Added to NRS by 1967, 360; A 1991, 821; 1999, 2384; 2011, 1477)

      NRS 165.137  Duties of trustee with regard to providing account; circumstances when account deemed approved by beneficiary.

      1.  The following provisions apply to the extent that the trust instrument does not expressly provide otherwise:

      (a) The trustee shall provide an account to each current beneficiary and to each remainder beneficiary upon request but is not required to provide an account to a remote beneficiary;

      (b) A trustee is not required to provide an account more than once in any calendar year unless ordered by a court to do so upon good cause shown;

      (c) Each account provided to a beneficiary must comply with the provisions of subsection 3 or 4 of NRS 165.135;

      (d) In addition to other methods of providing an account to a beneficiary, a trustee may provide an account to a beneficiary by electronic mail or through a secure website on the Internet;

      (e) While a trust is revocable, the trustee is not required to provide an account to any person other than a person having the right of revocation except that a trustee of such a trust shall provide an account if:

             (1) A court-appointed guardian of the trust estate requests an account on behalf of the settlor; or

             (2) The court, in considering a petition filed under NRS 164.015, determines that the settlor is incompetent or is susceptible to undue influence and directs the trustee to provide an account, specifying the nature and extent of the account to be provided and the person or persons who are entitled to receive the account;

      (f) While an irrevocable trust in its entirety is subject to a broad power of appointment, the trustee is not required to provide an account for that trust to any person other than the power holder;

      (g) The cost of an account must be charged as provided in the Uniform Principal and Income Act (1997) as set forth in chapter 164 of NRS;

      (h) An account shall be deemed approved by a beneficiary who received a copy of the account if no written objection thereto is given to the trustee within 120 days after the date on which the trustee provided the account to that beneficiary;

      (i) An account shall be deemed approved by a minor, unborn or unknown beneficiary if it is deemed approved as to an adult beneficiary who has a similar interest;

      (j) A trustee is not required to provide to a beneficiary information that does not affect the beneficiary’s interest in the trust, and an adult beneficiary may, by a written declaration that is signed by that beneficiary, waive the right to receive any information otherwise required to be provided pursuant to the provisions of subsection 3 or 4 of NRS 165.135; and

      (k) For the purposes of paragraph (h), a beneficiary shall be deemed to have received a copy of an account provided by the trustee to the beneficiary by electronic mail or through a secure website on the Internet if the trustee:

             (1) Sent the beneficiary an electronic mail in a manner that complies with subsection 1 of NRS 719.320 and the beneficiary received the electronic mail in a manner that complies with subsection 2 of NRS 719.320; and

             (2) Attached the account to the electronic mail as an electronic record or included in the electronic mail a notice to the beneficiary indicating the availability of the account on the secure website.

      2.  As used in this section:

      (a) “Electronic mail” has the meaning ascribed to it in NRS 41.715.

      (b) “Electronic record” has the meaning ascribed to it in NRS 132.117.

      (Added to NRS by 2011, 1472)

      NRS 165.139  Request for annual account by beneficiary; liability for failure to provide required account.  Notwithstanding any provision to the contrary in the trust instrument:

      1.  If the amount distributable to a current beneficiary is affected by the amount of administrative expenses or is affected by the allocation of receipts and disbursements to income or principal, the trustee shall, upon request, provide an account annually to the current beneficiary. An account provided to a current beneficiary pursuant to this subsection must comply with the provisions of subsection 3 or 4 of NRS 165.135, except to the extent that the current beneficiary agrees otherwise in writing.

      2.  Except as otherwise provided in this subsection, upon request, an account must be provided annually to each remainder beneficiary of an irrevocable trust. A beneficiary who has been eliminated by the exercise of a power of appointment has no right to request or receive an account pursuant to this subsection.

      3.  A trustee, at the expense of the trust, may provide:

      (a) An unrequested account to one or more beneficiaries at any time; and

      (b) More information to beneficiaries, including, without limitation, remote beneficiaries, than is required under the trust instrument or by law.

      4.  Unless the court determines that there is clear and convincing evidence that the trustee was acting in good faith, a trustee who fails to provide an account when required pursuant to NRS 165.122 to 165.149, inclusive, is personally liable to each beneficiary who requested the account in writing for all costs reasonably incurred by each such beneficiary to enforce NRS 165.122 to 165.149, inclusive, including, without limitation, reasonable attorney’s fees and court costs. The trustee may not expend trust funds therefor.

      (Added to NRS by 2011, 1473)

      NRS 165.141  Written demand for account by beneficiary; acceptance or rejection of demand by trustee.  A beneficiary may send a written demand for an account pursuant to NRS 165.122 to 165.149, inclusive, to the trustee in accordance with the following procedure:

      1.  The demand on the trustee must be sent to the trustee or to the trustee’s attorney of record and the demand must include, without limitation:

      (a) The identity of the demanding beneficiary, including the beneficiary’s mailing address or the address of the beneficiary’s attorney;

      (b) The accounting period for which an account is demanded; and

      (c) The nature and extent of the account demanded and the legal basis for the demand.

      2.  Within 14 days after the trustee has received a demand for an account from a beneficiary, the trustee shall notify the demanding beneficiary of the trustee’s acceptance or rejection of the demand. The trustee shall:

      (a) Provide an account within 60 days after receipt of the demand, unless that time is modified by consent of the beneficiary or by order of the court if the trustee accepts the beneficiary’s demand for an account; or

      (b) Set forth the grounds for rejecting the beneficiary’s demand for an account in the notice of rejection and inform the beneficiary that the beneficiary has 60 days in which to petition the court to review the rejection if the trustee rejects the beneficiary’s demand for an account.

      3.  The demand by the beneficiary and the notice of acceptance or rejection of the demand by the trustee must be delivered by first-class mail, personal delivery or commercial carrier. If delivery of the demand or of the notice is in dispute, proof of delivery may be established by a return receipt or other proof of delivery provided by the person making the delivery or by affidavit of the person who arranged for the delivery setting forth the delivery address, the method of delivery arranged for and the actions taken by that person to arrange for the delivery.

      4.  If the trustee fails to accept or reject a beneficiary’s demand for an account as required by subsection 2, the beneficiary’s demand shall be deemed rejected.

      (Added to NRS by 2011, 1474)

      NRS 165.143  Petition to review trustee’s rejection of written demand for account; notice; hearing.

      1.  A beneficiary whose demand for an account in compliance with NRS 165.141 is rejected or deemed rejected must file a petition seeking the court’s review of the trustee’s rejection within 60 days after the rejection date as described in subsection 2. A petition filed pursuant to this section may also seek additional relief pursuant to NRS 153.031.

      2.  If the trustee rejects the beneficiary’s demand for an account, the rejection date is the date on which the trustee provides the beneficiary with a notice of rejection. If the trustee fails to accept or reject the beneficiary’s demand, the rejection date is deemed to be 14 days after the beneficiary gave the trustee the demand.

      3.  If the court has not previously accepted jurisdiction over the trust, the beneficiary must petition the court to confirm the appointment of the trustee pursuant to NRS 164.010. Such a petition may be combined with the petition for the court’s review of the trustee’s rejection.

      4.  The clerk shall set the petition for hearing, and the petitioner shall give notice to all interested persons for the period and in the manner provided in NRS 155.010. The notice must state the filing of the petition, the object and the time and place of the hearing.

      5.  If one or more other beneficiaries with interests substantially similar to the petitioner request to join the petition at or before the hearing, the court shall consider the other beneficiaries to be additional petitioners without requiring those beneficiaries to file separate petitions or to give separate notices of the hearing.

      6.  At the hearing, as to each petitioner, the court may enter an order:

      (a) Compelling the trustee to provide an account to the petitioner and specifying the nature and extent of the account to be provided;

      (b) Declaring that the petitioner is not entitled to an account and setting forth the reason or reasons the petitioner is not so entitled; or

      (c) Compelling the trustee to provide an account to the petitioner as described in paragraph (a) and authorizing an independent review of the account using the procedure set forth in NRS 165.145.

      7.  Except as otherwise provided in subsection 3 of NRS 153.031 and subsection 4 of NRS 165.139, each petitioner shall pay his or her own expenses, including, without limitation, attorney’s fees, that arise in conjunction with filing a petition pursuant to this section.

      (Added to NRS by 2011, 1474)

      NRS 165.145  Providing confidential account; review of confidential account; order granting relief to beneficiary.  If, while considering a petition filed pursuant to NRS 165.143, the court finds that the beneficiary is entitled to an account pursuant to this section and that the trust instrument authorizes or directs the trustee not to provide the account with the disclosures required by this section, the court shall, upon the beneficiary’s request, compel the trustee to confidentially provide an account in accordance with the following procedure:

      1.  If the beneficiary has not been previously provided with a copy of the trust instrument, the court shall direct the trustee to provide the court and each reviewer selected pursuant to subsection 2 with a copy of the trust instrument, or such portions as the court deems to be pertinent to the determination of the adequacy of the trustee’s account and to the enforcement of the beneficiary’s rights under the trust.

      2.  The court shall direct the account to be provided confidentially to the court and to one or more reviewers selected by the beneficiary. The court may direct that the account be filed with the court clerk under seal or delivered to the court for in camera review. The account provided must contain the information required by this section without regard to any trust provision restricting the information to be provided to the requesting beneficiary.

      3.  A reviewer must be either a certified public accountant or an attorney.

      4.  Subject to the provisions of paragraph (b) of subsection 5, the beneficiary requesting the account must pay for the services of each reviewer. The expense of preparing the account must be paid as an expense of the trust.

      5.  Each reviewer must agree that:

      (a) The account provided must be reviewed confidentially and must not be provided to the beneficiary except as otherwise provided in paragraph (b) or in an order of the court; and

      (b) The reviewer’s duty is to review the account and to prepare a written report, which must be filed with the court clerk under seal or submitted to the court for in camera review, informing the court if there is anything that would indicate that the trust, as it affects the beneficiary’s interest, has not been or may not have been properly administered or accounted for in accordance with applicable law, the trust instrument and generally accepted accounting principles applicable to trusts. At the same time a copy of the reviewer’s report is provided to the court, a copy of each reviewer’s report must be delivered to the trustee or to the trustee’s attorney of record.

      6.  The trustee may submit to the court and to each reviewer an objection to the report of a reviewer within 10 days after the trustee received the reviewer’s report. The trustee shall submit the objections to the court and to each reviewer in the same manner as the trustee provided the account. The court may consider each reviewer’s report and the objections of the trustee with or without a hearing. If the court, after considering the report of any reviewer and any objection submitted by the trustee, finds that the trust, as it affects the beneficiary’s interest, has not been or may not have been properly administered or accounted for in accordance with applicable law, the trust instrument and generally accepted accounting principles applicable to trusts, in addition to any other relief granted by the court pursuant to NRS 153.031 or 165.143, the court shall enter an order granting the relief necessary to protect the beneficiary’s interests or to allow the beneficiary to enforce his or her rights under the trust.

      7.  An order granting relief described in subsection 6 may include one or more of the following:

      (a) A directive to the trustee to provide the beneficiary an account which complies with the provisions of subsection 3 or 4 of NRS 165.135, together with such additional information as the beneficiary may require to properly enforce his or her rights under the trust;

      (b) A directive to the trustee to provide further annual accounts required under this section without further court order;

      (c) A directive to the trustee to provide the court and each reviewer a more complete account or such additional information as the court deems necessary to determine if the trust is being properly administered in compliance with the trust instrument and applicable law;

      (d) A directive to the trustee to take action to remedy or mitigate the effects of any improper administration of the trust;

      (e) A declaration relieving each reviewer from any further obligation of confidentiality; and

      (f) Any such additional relief as the court deems proper to ensure the trustee’s compliance with the trust instrument and applicable law and to allow enforcement of the beneficiary’s rights.

      8.  If the beneficiary is granted any relief by the court on the basis that the trust was not properly administered or accounted for, the provisions of subsection 3 of NRS 153.031 and subsection 4 of NRS 165.139 apply with regard to the reimbursement of costs incurred by the beneficiary.

      (Added to NRS by 2011, 1475)

      NRS 165.147  Requirement to provide copy of trust instrument to beneficiary entitled to receive account.

      1.  Upon request by a beneficiary who is entitled to receive an account pursuant to the terms of NRS 165.122 to 165.149, inclusive, a trustee shall provide a copy of the trust instrument to that beneficiary except as expressly provided otherwise in the trust instrument.

      2.  Notwithstanding the provisions of subsection 1 or any provision to the contrary in the trust instrument, the court may direct the trustee to provide a beneficiary who is entitled to receive an account pursuant to the terms of NRS 165.122 to 165.149, inclusive, a copy of the trust instrument, or such portions as the court deems to be pertinent to the determination of the adequacy of the trustee’s account and to the enforcement of the beneficiary’s rights under the trust.

      3.  Except as otherwise provided in NRS 165.145 or by order of the court for good cause shown, the trustee must not be compelled to provide a copy of the trust instrument to a person who is not a beneficiary of the trust or a person who is not entitled to an account of the trust pursuant to the provisions of NRS 165.122 to 165.149, inclusive.

      (Added to NRS by 2011, 1476)

      NRS 165.149  Persons with power of appointment.  Except as otherwise provided in a trust instrument, a person holding a power of appointment pursuant to a nontestamentary 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, 1477)

GENERAL PROVISIONS

      NRS 165.150  Duties of clerks and courts.  The clerks of the district courts shall severally keep records of all trust inventories and accounts filed with their respective courts. Those courts shall, upon learning that a trustee subject to their respective jurisdictions has failed to perform any duty placed upon the trustee by this chapter, issue a citation or order to the trustee requiring him or her to perform that duty.

      [14:135:1941; 1931 NCL § 7718.13]—(NRS A 1999, 2385)

      NRS 165.160  Trust instrument.

      1.  Except as otherwise provided by a specific statute, federal law or common law, the terms of a trust instrument may expand, restrict, eliminate or otherwise vary the rights and interests of beneficiaries in any manner that is not illegal or against public policy, including, without limitation, specifying:

      (a) The right to be informed of the beneficiary’s interest for a period of time;

      (b) The grounds for removing a fiduciary;

      (c) The circumstances, if any, in which the fiduciary must diversify investments; and

      (d) A fiduciary’s powers, duties, standard of care, rights of indemnification and liability to persons whose interests arise from the trust instrument.

      2.  Nothing in this section shall be construed to:

      (a) Authorize the exculpation or indemnification of a fiduciary for the fiduciary’s own willful misconduct or gross negligence; or

      (b) Preclude a court of competent jurisdiction from removing a fiduciary because of the fiduciary’s willful misconduct or gross negligence.

      3.  The rule that statutes in derogation of the common law are to be strictly construed has no application to this section. This section must be liberally construed to give maximum effect to the principle of freedom of disposition and to the enforceability of trust instruments.

      [15:135:1941; 1931 NCL § 7718.14]—(NRS A 2009, 801; 2011, 1478)

      NRS 165.170  Power of beneficiary.  Any beneficiary, if of full age and sound mind, may, if acting upon full information, by written instrument delivered to the trustee, excuse the trustee as to such beneficiary from performing any of the duties imposed on the trustee by this chapter or exempt the trustee from liability to such beneficiary for failure to perform any of the duties imposed upon the trustee by the terms of this chapter.

      [16:135:1941; 1931 NCL § 7718.15]

      NRS 165.180  Accountability of trustees at other times.  This chapter does not abridge the power of any court of competent jurisdiction to require testamentary or nontestamentary trustees to file an inventory, to account, to exhibit the trust property, or to give beneficiaries information or the privilege of inspection of trust records and papers, at times other than those prescribed in this chapter, or abridge the power of the court for cause shown to excuse a trustee from performing any or all of the duties imposed on the trustee by this chapter. This chapter does not preclude the trustee from accounting voluntarily even if he or she is not required to do so by this chapter or by court order.

      [17:135:1941; 1931 NCL § 7718.16]—(NRS A 1999, 2385)

      NRS 165.190  Enforcement.  A beneficiary may petition the court having jurisdiction over the accountings, as prescribed in this chapter, for an order requiring the trustee to perform the duties imposed upon the trustee by this chapter.

      [18:135:1941; 1931 NCL § 7718.17]—(NRS A 1999, 2385)

      NRS 165.200  Penalties for violation of chapter.  When a trustee fails to perform any of the duties imposed upon the trustee by this chapter the trustee may be removed, the trustee’s compensation may be reduced or forfeited, or other civil penalty inflicted, in the discretion of the court.

      [19:135:1941; 1931 NCL § 7718.18]

      NRS 165.210  Form of inventory and accounts; compensation of attorney for intermediate and final accounts.

      1.  The courts given jurisdiction over accountings by this chapter may prescribe forms in which inventories and accounts shall be presented.

      2.  An attorney for a trustee shall be entitled to receive a reasonable compensation, to be allowed by the court, for services rendered to the trustee in the preparation and presentation of intermediate and final accounts.

      [10.5:135:1941; added 1955, 21] + [20:135:1941; 1931 NCL § 7718.19]

      NRS 165.220  Oaths.  Whenever an oath or affirmation is required of a trustee under this chapter, it may be made in the case of a corporate trustee by an officer of such corporate trustee, and in the case of cotrustees acting jointly by any one of the cotrustees.

      [21:135:1941; 1931 NCL § 7718.20]

      NRS 165.230  Charitable trusts.  This chapter shall apply to charitable trusts. Documents required to be delivered to beneficiaries of such trusts shall be delivered to the Attorney General.

      [22:135:1941; 1931 NCL § 7718.21]

      NRS 165.240  Uniformity of interpretation.  This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

      [23:135:1941; 1931 NCL § 7718.22]