Nevada Revised Statutes 163.115 – Removal of trustee; maintenance of proceeding for breach of trust by trustee; permissible purposes for maintenance of proceeding; penalties for not filing petition in good faith; nonexclusivity of remedies; method of…
1. A settlor, cotrustee or beneficiary of the trust may request the court to remove a trustee, or a trustee may be removed by the court on its own motion pursuant to subsection 2.
Terms Used In Nevada Revised Statutes 163.115
- 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
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Lien: A claim against real or personal property in satisfaction of a debt.
- Probable cause: A reasonable ground for belief that the offender violated a specific law.
- Statute: A law passed by a legislature.
- Trustee: A person or institution holding and administering property in trust.
2. The court may remove a trustee if:
(a) The trustee commits or threatens to commit a breach of trust;
(b) Lack of cooperation between cotrustees substantially impairs the administration of the trust; or
(c) Because of unfitness, unwillingness or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the settlor or beneficiaries.
3. If a trustee commits or threatens to commit a breach of trust, a beneficiary or cotrustee of the trust may maintain a proceeding for any of the following purposes that is appropriate:
(a) To compel the trustee to perform his or her duties.
(b) To enjoin the trustee from committing the breach of trust.
(c) To compel the trustee to redress the breach of trust by payment of money or otherwise.
(d) To appoint a receiver or temporary trustee to take possession of the trust property and administer the trust.
(e) To remove the trustee.
(f) To set aside acts of the trustee.
(g) To reduce or deny compensation of the trustee.
(h) To impose an equitable lien or a constructive trust on trust property.
(i) To trace trust property that has been wrongfully disposed of and recover the property or its proceeds.
4. If the court determines that a proceeding instituted pursuant to subsection 1 by a settlor, cotrustee or beneficiary of the trust against a trustee was not instituted in good faith and based on probable cause, the court may order that the settlor, cotrustee or beneficiary who is maintaining the proceeding against a trustee pay all or part of the costs of the proceeding, including, without limitation, reasonable attorney’s fees. The provisions of this subsection do not preclude any other remedy available.
5. The provisions of subsections 2 and 3 do not preclude resort to any other appropriate ground or remedy provided by statute or common law.
6. A proceeding under this section must be commenced by filing or bringing in conjunction with the filing of a petition under NRS 164.010 and 164.015.