164.840 - Allocation of assets, money, property and other receipts to principal.

164.840  Allocation of assets, money, property and other receipts to principal.  A trustee shall allocate to principal:

      1.  To the extent not allocated to income under NRS 164.780 to 164.925, inclusive, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payor under a contract naming the trust or its trustee as beneficiary;

      2.  Money or other property received from the sale, exchange, liquidation or change in form of a principal asset, including realized profit, subject to NRS 164.780 to 164.925, inclusive;

      3.  Amounts recovered from third parties to reimburse the trust because of disbursements described in paragraph (g) of subsection 1 of NRS 164.905 or for other reasons to the extent not based on the loss of income;

      4.  Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;

      5.  Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and

      6.  Other receipts as provided in NRS 164.810, 164.815 and 164.820.

      (Added to NRS by 2003, 1975)