[Rev. 5/24/2016 2:48:06 PM--2015]

CHAPTER 165 - TRUSTEES’ ACCOUNTING (UNIFORM ACT)

GENERAL PROVISIONS

NRS 165.010           Short title.

NRS 165.020           Definitions; applicability of chapter.

INVENTORY

NRS 165.030           Inventory of trust property.

ACCOUNTS

NRS 165.040           Intermediate accountings: General requirements; exceptions. [Repealed.]

NRS 165.045           Intermediate accountings: Notice; hearing. [Repealed.]

NRS 165.050           Final accounting: General requirements. [Repealed.]

NRS 165.055           Final accounting: Notice. [Repealed.]

NRS 165.060           Accounting of distribution of property; discharge of trustee. [Repealed.]

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 [Repealed.]

NRS 165.100           Representation of beneficiary. [Repealed.]

NRS 165.110           Proceedings in court. [Repealed.]

NRS 165.120           Approval or disapproval by court; reopening. [Repealed.]

NRS 165.1201         Applicability to testamentary trusts; general duties of trustee.

NRS 165.1204         Applicability to nontestamentary trusts; general duties of trustee.

NRS 165.1207         Requirements for satisfying duty to account; persons entitled to receive account.

NRS 165.121           Waiver of right to receive account.

NRS 165.1214         Delivery of account; frequency; when account deemed approved and final; payment of cost of preparation.

NRS 165.122           Definitions. [Repealed.]

NRS 165.124           “Accounting period” defined. [Repealed.]

NRS 165.126           “Broad power of appointment” defined. [Repealed.]

NRS 165.128           “Current beneficiary” defined. [Repealed.]

NRS 165.129           “Distribution beneficiary” defined. [Repealed.]

NRS 165.132           “Remainder beneficiary” defined. [Repealed.]

NRS 165.134           “Remote beneficiary” defined. [Repealed.]

NRS 165.135           Form and contents of account.

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 [Repealed.]

NRS 165.138           Written demand for account by beneficiary: General duties of trustee; power to provide account or information without demand.

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 [Repealed.]

NRS 165.141           Written demand for account by beneficiary: Acceptance or rejection of demand by trustee; limitations on right to demand account.

NRS 165.143           Petition to review trustee’s rejection of written demand for account; time to file; 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 165.148           Personal liability of trustee for failing to provide account; exceptions.

POWER OF APPOINTMENT

NRS 165.149           Limitations on duties and liability of person with power of appointment.

ADMINISTRATION AND ENFORCEMENT

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.

_________

GENERAL PROVISIONS

      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; applicability of chapter.

      1.  As used in this chapter:

      (a) “Account” means a report of the financial condition of the trust estate prepared by a trustee which:

             (1) Must include the information set forth in NRS 165.135; and

             (2) May include information required by court order, the terms of the trust instrument or NRS 165.1201 to 165.148, inclusive.

      (b) “Accounting period” means the period for which the trustee is accounting and, except as otherwise provided in this chapter, 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 initial account commences on the day the trustee became the trustee.

      (c) “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:

                   (I) The power holder;

                   (II) The power holder’s estate;

                   (III) The power holder’s creditors; or

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

      (d) “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.

      (e) “Distribution beneficiary” has the meaning ascribed to it in NRS 163.415.

      (f) “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, but has not been eliminated, under a power of appointment other than a broad power of appointment.

      (g) “Remote beneficiary” means a natural person or an entity whose interest in the trust estate is preceded by the priority interest of one or more current beneficiaries and one or more remainder beneficiaries, all of whose interests must be extinguished by death or pursuant to the terms of the trust instrument before the remote beneficiary may become a current beneficiary.

      (h) “Settlor” means the creator of a testamentary as well as a nontestamentary trust. The term includes a trustor and a grantor.

      (i) “Successor trustee” means a successor to the acting trustee or substitute trustee named or appointed to succeed a predecessor trustee who has not yet assumed the role of trustee. Upon assuming the role, the successor trustee must thereafter be referred to as the trustee.

      (j) “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.

      (k) “Trust” means:

             (1) A trust as defined in NRS 163.020;

             (2) A testamentary trust as defined in NRS 163.0018; and

             (3) A nontestamentary trust as defined in NRS 163.0016.

      (l) “Trustee” includes a nontestamentary trustee, a testamentary trustee and a corporate trustee, as well as a natural person. The term does not include a successor or substitute trustee, until the successor trustee or substitute trustee assumes the role of acting 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; 2015, 3559)

INVENTORY

      NRS 165.030  Inventory of trust property.  Within 75 days after a trustee receives possession of trust property, the trustee shall serve a copy of an inventory setting forth all the trust property which has come into the possession or knowledge of the trustee. The trustee shall serve the notice in the manner set forth in NRS 155.010 to each interested person and beneficiary to whom the trustee is required to account pursuant to this chapter.

      [2:135:1941; 1931 NCL § 7718.01] — (NRS A 1975, 1781; 1999, 2381; 2015, 3560)

ACCOUNTS

      NRS 165.040  Intermediate accountings: General requirements; exceptions.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.045  Intermediate accountings: Notice; hearing.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.050  Final accounting: General requirements.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.055  Final accounting: Notice.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.060  Accounting of distribution of property; discharge of trustee.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.090  Vouchers, cancelled checks or other documents supporting account; lost vouchers.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.100  Representation of beneficiary.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.110  Proceedings in court.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.120  Approval or disapproval by court; reopening.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.1201  Applicability to testamentary trusts; general duties of trustee.

      1.  Except as otherwise provided in this chapter, the provisions of NRS 165.1204 apply to a testamentary trust.

      2.  Except as otherwise provided by the will creating a testamentary trust or by a court order, until the termination of a testamentary trust, the trustee shall account for the income and principal of a testamentary trust in the same manner as required by a trustee of a nontestamentary trust pursuant to NRS 165.1201 to 165.148, inclusive.

      (Added to NRS by 2015, 3556)

      NRS 165.1204  Applicability to nontestamentary trusts; general duties of trustee.

      1.  The trustee of a nontestamentary trust has a duty to account for the trust estate in accordance with the provisions of NRS 165.1201 to 165.148, inclusive.

      2.  The trustee of a nontestamentary trust shall satisfy the duty to account by delivery of an account in the form, manner and to the persons as required by the terms and conditions stated in the trust instrument.

      (Added to NRS by 2015, 3556)

      NRS 165.1207  Requirements for satisfying duty to account; persons entitled to receive account.

      1.  To the extent that the trust instrument does not provide otherwise, the trustee of a nontestamentary trust shall satisfy the duty to account for the nontestamentary trust estate by delivery of an account which conforms with the requirements of NRS 165.135, and pursuant to the following:

      (a) Except as otherwise limited by paragraph (b), the trustee shall deliver an account, upon demand pursuant to NRS 165.141, to each current beneficiary, and to each remainder beneficiary of the trust. A trustee is not required to provide an account to a remote beneficiary pursuant to this section.

      (b) Notwithstanding paragraph (a), a trustee may satisfy the duty to account in accordance with subparagraphs (1) to (6), inclusive, where applicable:

             (1) While a trust is revocable by the settlor, the trustee is not required to deliver an account to any person other than the settlor except that a trustee of such a trust shall deliver an account if:

                   (I) A court-appointed guardian of the estate of the settlor or other person having the right of revocation demands an account on behalf of the settlor; or

                   (II) The court, in considering a petition filed under NRS 164.015, determines that the settlor or other person holding the right of revocation is incompetent or is susceptible to undue influence and orders 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.

             (2) While the trust is irrevocable in its entirety, but is subject to a broad power of appointment, the trustee is not required to provide an account other than to the power holder for the trust or portion of the trust that is subject to a broad power of appointment.

             (3) The trustee is not required to provide an account to a person who has been eliminated as a beneficiary by the effective exercise of a power of appointment.

             (4) The trustee is not required to provide an account of any portion of the trust estate to a beneficiary that does not affect the beneficiary’s interest in the trust, and the trustee may redact the account as to such portions that do not affect the beneficiary’s interest.

             (5) A trustee is not required to provide an account to a beneficiary of an irrevocable trust while that beneficiary’s only interest in the trust estate is a discretionary interest, as described in NRS 163.4185.

             (6) A trustee is not required to provide an account to any beneficiary who has waived or is deemed to have waived the right to receive an account in accordance with NRS 165.121. However, if the waiver is partial or only as to form of the account, the trustee shall satisfy the duty to account in accordance with the terms of the waiver.

      2.  Nothing in this section shall be interpreted to prohibit a trustee from petitioning the court for instructions as to the persons entitled to receive an account and the procedures required of the trustee to satisfy the requirements of this section pursuant to subsection 2 of NRS 165.148.

      (Added to NRS by 2015, 3556)

      NRS 165.121  Waiver of right to receive account.  Notwithstanding the provisions of NRS 165.1201 to 165.148, inclusive, any beneficiary may waive the right to receive an account from a trustee by delivering to the trustee a waiver signed by the beneficiary. The waiver may be a limited waiver as to the form of the account, of the right to seek a hearing on the account, or of the right to receive notice of a hearing on the account. Such waiver is applicable to the beneficiary and any other beneficiaries who are represented by the waiving beneficiary pursuant to NRS 164.038 or by order of the court.

      (Added to NRS by 2015, 3557)

      NRS 165.1214  Delivery of account; frequency; when account deemed approved and final; payment of cost of preparation.

      1.  Except as may otherwise be required pursuant to the terms of the trust instrument or by order of the court, the trustee shall deliver a required account within 90 days after the end of the period of account, which may be extended by consent of the beneficiary, or by order of the court for good cause shown.

      2.  The trustee shall be deemed to have provided an account to any person on whom the trustee delivers a copy of the account as directed by order of the court or, if not so ordered, pursuant to the following:

      (a) By mailing a copy of the account by certified, registered or ordinary first-class mail, or by overnight delivery through a recognized delivery service company, addressed to the person being served at the post office address or physical address given in the person’s demand for account, if any, or at the person’s last place of residence on file with the trustee, if known, or by personally delivering a copy thereof to the person; or

      (b) By electronic mail or through a secure website on the Internet. For purposes of this paragraph, a person 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.

      3.  Except as otherwise required by the trust instrument, a trustee is not required to provide an account more than once in any calendar year unless ordered by a court upon good cause shown.

      4.  An account must be deemed approved and final as follows:

      (a) By a beneficiary who received a copy of the account if no written objection is delivered to the trustee in accordance with subsection 2 within 90 days after the date on which the trustee provided the account to that beneficiary; or

      (b) By all beneficiaries who are not required to receive an account, such as nonvested and contingent beneficiaries, remote beneficiaries, minor beneficiaries, and unborn or unknown beneficiaries if the account is deemed approved and final by a beneficiary who has a similar, but preceding interest, in the trust estate, in conformance with NRS 164.038, or as to any beneficiary who has waived an account pursuant to NRS 165.121.

Ê Notwithstanding the foregoing, if an account is submitted to the court for approval under a petition pursuant to chapter 164 of NRS, the account must be deemed final and approved upon by order of the court, subject only to the right of an interested person to appeal.

      5.  Except as otherwise ordered by the court, the cost of preparing an account must be paid from the trust estate, and allocated to income and principal as provided in the trust instrument, and if the trust instrument is otherwise silent, in accordance with NRS 164.780 to 164.925, inclusive.

      6.  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 2015, 3557)

      NRS 165.122  Definitions.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.124  “Accounting period” defined.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.126  “Broad power of appointment” defined.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.128  “Current beneficiary” defined.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.129  “Distribution beneficiary” defined.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.132  “Remainder beneficiary” defined.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.134  “Remote beneficiary” defined.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.135  Form and contents of account.

      1.  An account 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, which must include:

             (1) The beginning value of the trust estate:

                   (I) For the first accounting, the beginning value of the trust estate shall consist of the total of all original assets contained in the beginning inventory.

                   (II) For accountings other than the first account, the beginning value of the trust estate for the applicable accounting period must be the ending value of the prior accounting.

             (2) The total of all receipts received during the accounting period, excluding capital items.

             (3) The total of all gains on sales or other disposition of assets, if any, during the accounting period.

             (4) The total of disbursements and distributions during the accounting period.

             (5) The total of all losses on sales or other disposition of assets, if any, during the accounting period.

             (6) The total value of the trust assets remaining on hand at the end of the accounting period.

      2.  A summary of the account pursuant to paragraph (e) of subsection 1 must be in substantially the following form:

 

CHARGES

[Add one of the following alternatives]

[Alternative 1: First, or first and final account]

Amount of inventory and appraisal                              $.............................

Amount of supplemental inventories                            $.............................

[Alternative 2: Subsequent account]

Property on hand at beginning of account                   $.............................

Additional property received                                           $.............................

[Continue]

Receipts (Schedule _____)                                              $.............................

Gains on sale or other disposition (Schedule _____)  $.............................

Net income from trade or business (Schedule _____) ............................ $       

Total Charges:                                                                    $.............................

 

CREDITS

Disbursements during account period (Schedule _____)........................ $       

[If applicable, add the following option]

[Option: Distributions to testamentary trust]

Principal Income (Schedule _____)                               $.............................

Losses on sale or other disposition (Schedule ______) .......................... $       

Net loss from trade or business (Schedule _____)       $.............................

Distributions (Schedule _____)                                       $.............................

Property on hand at close of account (Schedule _____) ....................... $       

Total Credits:                                                                      $.............................

 

      3.  In lieu of segregating the report on income and principal pursuant to subsection 1, the trustee may combine income and principal activity in the account so long as the combined report on income and principal does not materially impede a beneficiary’s ability to evaluate the charges to or credits against the beneficiary’s interest.

      4.  Notwithstanding the provisions of subsections 1, 2 and 3, an account may instead consist of:

      (a) A statement indicating the accounting period and a financial report, which must consist of a compilation or financial statement of the trust prepared by a certified public accountant and include summaries of the information required by subsection 1; or

      (b) A statement prepared by the trustee, the contents of which are agreed to by the trustee and the person receiving such report as sufficient to serve as an account.

Ê An account prepared pursuant to this subsection must be in a writing, signed by the person receiving the information and documentation, delivered to the trustee, and may include a waiver of account pursuant to NRS 165.121.

      (Added to NRS by 1967, 360; A 1991, 821; 1999, 2384; 2011, 1477; 2015, 3560)

      NRS 165.137  Duties of trustee with regard to providing account; circumstances when account deemed approved by beneficiary.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.138  Written demand for account by beneficiary: General duties of trustee; power to provide account or information without demand.

      1.  Notwithstanding any provision to the contrary in the trust instrument, but subject to the right of the trustee to petition the court for further instructions pursuant to subsection 2 of NRS 165.148, and subject to the exceptions set forth under paragraph (b) of subsection 1 of NRS 165.1207, a trustee shall provide an account conforming with the requirements of NRS 165.135 to a beneficiary pursuant to a demand by such beneficiary pursuant to NRS 165.141.

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

      (a) An account to one or more beneficiaries at any time, with or without demand; and

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

      (Added to NRS by 2015, 3557)

      NRS 165.139  Request for annual account by beneficiary; liability for failure to provide required account.  Repealed. (See chapter 524, Statutes of Nevada 2015, at page 3566.)

 

      NRS 165.141  Written demand for account by beneficiary: Acceptance or rejection of demand by trustee; limitations on right to demand account.  A beneficiary who has not otherwise been provided with an account pursuant to this chapter may send a written demand for an account 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 or that the trustee intends to seek instructions from the court pursuant to subsection 2 of NRS 165.148 regarding the sufficiency of the demand or the right of the beneficiary to receive an account. 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;

      (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; or

      (c) File a petition with the court pursuant to NRS 164.015 seeking instructions from the court pursuant to subsection 2 of NRS 165.148 regarding the sufficiency of the demand or the right of the beneficiary to receive an account within 15 days after the receipt of the demand if the trustee intends to seek instructions from the court.

      3.  The demand by the beneficiary and the notice of the trustee’s action thereon 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, reject or seek instructions concerning a beneficiary’s demand for an account as required by subsection 2, the beneficiary’s demand shall be deemed rejected.

      5.  A beneficiary is not entitled to demand an account pursuant to this section if the accounting period for which the demand is made is deemed final pursuant to subsection 4 of NRS 165.1214.

      (Added to NRS by 2011, 1474; A 2015, 3563)

      NRS 165.143  Petition to review trustee’s rejection of written demand for account; time to file; 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 and is thereafter barred from further right to demand an account for the period subject to the demand. A petition filed pursuant to this section may also seek additional relief pursuant to NRS 153.031, 164.015 and 164.031.

      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 delivered the demand to the trustee.

      3.  If the court has not previously accepted jurisdiction over the trust pursuant to NRS 164.010, the beneficiary must petition the court to confirm the appointment of the trustee pursuant to NRS 164.010 and to admit the trust to the jurisdiction of the court. 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, 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; A 2015, 3564)

      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, 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 instrument.

      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 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 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 apply with regard to the reimbursement of costs incurred by the beneficiary.

      (Added to NRS by 2011, 1475; A 2015, 3564)

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

      1.  Upon demand by a beneficiary pursuant to NRS 165.141 who is entitled to receive an account pursuant to the terms of NRS 165.1201 to 165.148, 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 165.1201 to 165.148, 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 165.1201 to 165.148, inclusive.

      (Added to NRS by 2011, 1476; A 2015, 3566)

      NRS 165.148  Personal liability of trustee for failing to provide account; exceptions.

      1.  Unless the court determines that the trustee was acting in good faith, a trustee who fails to provide an account pursuant to the terms of the trust instrument, or when required pursuant to the provision of this chapter, is personally liable to each person entitled to receive an account who demanded the account in writing pursuant to this chapter or all costs reasonably incurred by each such person to enforce the terms of the trust or this chapter, including, without limitation, reasonable attorney’s fees and court costs. The trustee shall not expend trust funds to satisfy the trustee’s personal liability imposed under this subsection.

      2.  Notwithstanding subsection 1, if the trustee’s failure to account is based upon good cause due to the trustee’s reasonable uncertainty as to the beneficiary’s right to an account or by a provision in the trust instrument that specifically restricts or prohibits the trustee from providing an account to a beneficiary who is otherwise entitled to an account, then the trustee may, at the expense of the trust estate, bring a petition for instructions before the court to confirm:

      (a) The right of the beneficiary to receive an account;

      (b) The right of and sufficiency of a demand for an account by a beneficiary; or

      (c) The extent of account required to satisfy the trustee’s duty to account to such beneficiary, if any, including the sufficiency of a confidential account pursuant to NRS 165.145.

      (Added to NRS by 2015, 3558)

POWER OF APPOINTMENT

      NRS 165.149  Limitations on duties and liability of person 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)

ADMINISTRATION AND ENFORCEMENT

      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]