Nevada Revised Statutes 163.417 – Limitations on actions of creditors and courts: Trust property not subject to trustee’s personal obligations; beneficial interests may not be transferred under certain circumstances
1. A creditor may not exercise, and a court may not order the exercise of:
Terms Used In Nevada Revised Statutes 163.417
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Trustee: A person or institution holding and administering property in trust.
(a) A power of appointment or any other power concerning a trust that is held by a beneficiary;
(b) Any power listed in NRS 163.5553 that is held by a trust protector as defined in NRS 163.5547 or any other person;
(c) A trustee‘s discretion to:
(1) Distribute any discretionary interest;
(2) Distribute any mandatory interest which is past due directly to a creditor; or
(3) Take any other authorized action in a specific way; or
(d) A power to distribute a beneficial interest of a trustee solely because the beneficiary is a trustee.
2. Trust property is not subject to the personal obligations of the trustee, even if the trustee is insolvent or bankrupt.
3. A settlor may provide in the terms of the trust instrument that a beneficiary’s beneficial interest may not be transferred, voluntarily or involuntarily, before the trustee has delivered the interest to the beneficiary.