Nevada Revised Statutes 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.
Terms Used In Nevada Revised Statutes 165.148
- 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. See Nevada Revised Statutes 165.020
- 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
- Trust: means :
(1) A trust as defined in NRS 163. See Nevada Revised Statutes 165.020
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes a nontestamentary trustee, a testamentary trustee and a corporate trustee, as well as a natural person. See Nevada Revised Statutes 165.020
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.