Nev. Rev. Stat. § 163.4185

Current through 82nd (2023) Legislative Session Chapter 535 and 34th (2023) Special Session Chapter 1 and 35th (2023) Special Session Chapter 1
Section 163.4185 - Classifications of distribution interests
1. A distribution interest may be classified as:
(a) A mandatory interest if the trustee has no discretion to determine whether a distribution should be made, when a distribution should be made or the amount of the distribution.
(b) A support interest if the trustee is mandatorily required to make distributions to the beneficiary upon the determination of the trustee that the distribution will satisfy a defined ascertainable standard set forth in the instrument and, upon such a determination, the trust instrument does not otherwise condition such distribution authority on the further discretion of the trustee.
(c) A discretionary interest if the trustee has discretion to determine whether a distribution should be made, when a distribution should be made and the amount of the distribution.
2. If a trust contains a combination of a mandatory interest, a support interest or a discretionary interest, the trust must be separated as:
(a) A mandatory interest only to the extent of the mandatory language provided in the trust;
(b) A support interest only to the extent of the support language provided in the trust; and
(c) A discretionary interest for any remaining trust property.
3. If a trust provides for a support interest that also includes mandatory language but the mandatory language is qualified by discretionary language, the support interest must be classified and separated as a discretionary interest.
4. As used in this section, "ascertainable standard" means a standard relating to a person's health, education, support or maintenance within the meaning of section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code, 26 U.S.C. § 2041 (b)(1)(A) or 2514(c)(1), and any regulations of the United States Treasury promulgated thereunder.

NRS 163.4185

Added to NRS by 2009, 786; A 2017, 1690
Amended by 2023, Ch. 215,§11, eff. 7/1/2023.
Amended by 2017, Ch. 311,§48, eff. 10/1/2017.
Added to NRS by 2009, 786