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.
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:
(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.
(Added to NRS by 2009, 785)