AB 286 — Makes various changes relating to trusts and estates. (BDR 2-1028)

-(NRS *AB286_R2*143.165, –163.115) 4Sections –15 anand ex22 parteof order:this bill authorize a court to enter performing certain acts;

(1) restraining a personal representative or a trustee fromter performing certain acts;

Sections 15 and 22 authorize a court to impose a fine on an interested person or a beneficiary who obtains an ex parte order without probable cause and further authorize the court to terminate an ex parte order in certain circumstances.

Sections 25 and 27-31 of this bill make conforming changes.

(1) authorizes a court to set apart for the use of the surviving spouse, minor child or minor children of the decedent all of the personal property which is exempt by law from execution;

andofand the (2) requires a court to set apart the homestead.

(NRS 146.020) Section 16 of this bill removes the provision that such setting apart must happen after the filing of the - 80th Session (2019) – 4 – inventory of the estate.

If, after setting apart the property, the remainingadministration, assetssection of16 requires the estatecourt exceedto $100,000administer andthe mayremaining notassets beof set aside without the estate as if the remaining assets of the estate are the only assets of the estate.

(NRS 162B.105) Section 17 of this bill provides that, unless the terms of the instrument creating a power of appointment manifest a contrary intent, the creation, revocation or amendment of the power and the exercise, release or disclaimer of the power is valid if permitted under any of:

(NRS 162B.200) Section 18 of this bill removes the requirement that the instrument creating the power must transfer the appointive property.

that the instrument creating the power must Existing law authorizes a powerholder of a nongeneral power, unless the terms of the instrument creating a power of appointment manifest a contrary intent, to create a general power in a permissible appointee.

(NRS 162B.320) Section 19 ofoof this bill authorizes a powerholder of a nongeneral power, unless the terms of the instrument creating a power of appointment manifest a contrary intent, to create a general power or a nongeneral power in a permissible appointee.

Existing law provides that appointive property subject to a general power of appointment created by a person other than the powerholder is subject to a claim of certain creditors.

(NRS 162B.510) Section 21 of this bill provides that suchlaimsuch of property subject to a general power of appointment is not subject to a claim of any creditor, unless the power of appointment was actually exercised in favor of the decedent or the decedent’s estate.

- *AB286_R2* – 5 – extent that a right to amend or a right to revoke the trust is expressly reserved by the settlor.

(NRS 163.115) Section 26 of this bill authorizes a settlor, cotrustee or beneficiary of a trust or a court, on its Sectionown 26initiative, furtherto authorizesrequest thea court to orderremove that a settlor,trustee cotrusteein ores.certain circumstances.

Section 26 further authorizes the court to order that a settlor, cotrustee or beneficiary of a trust who institutes a proceeding against a trustee without good - 80th Session (2019) – 5 – faith and not based on probable cause pay all or any part of the costs of the proceeding, including reasonable attorney’s fees.

Existing law prohibits a trustee from appointing property of the original trust to a second trust in certain circumstances, including where property held for the benefit of one or more beneficiaries underundernces, both the original and second trust has a lower value than the value of the property 163.556)held Sectionfor 32the benefit of thissuch billbeneficiaries removesunder thisonly prohibition.originalthe original trust.

(NRS Existing163.556) lawSection authorizes32 a trust to refer to a written statement or list to dispose of itemsthis ofbill tangibleremoves personalthis propertyprohibition. not otherwise disposed of by the trust.

Existing law authorizes a trust to refer to a written statement or list to dispose of items of tangible personal property not otherwise disposed of by the trust.

Section 33 further provides that such a statement or list may be used to dispose of all items of trust property, regardless of whether the trust property is real trustor instrumentpersonal toproperty limitor thetangible use of such statement or listintangible to:property.

Section 33 authorizes the trust instrument to limit the use of such statement or list to:

484 of the 78th Legislative Session replaced the term “excluded fiduciary”3518) withExisting “directedlaw fiduciary.”still (Chapterdefines 524,“excluded Statutesfiduciary” ofalthough Nevadathis 2015,term p.has been replaced.

3518) Existing law still defines “excluded fiduciary” although this term has been replaced.

Existing law sets forth various requirements for the expenses and compensation similar requirements for the expenses and compensation of a trustee of ailla addstestamentary nontestamentary trust.

(NRS 153.070) Section 34 of this bill adds similar requirements for the expenses and compensation of a trustee of a nontestamentary trust.

Under existing law, certain persons may be represented by another person who has 164.038)a Sectionsubstantially 36similar ofinterest thiswith billrespect authorizesto athe powerholderquestion ofor adispute. power ofe.

(NRS 164.038) Section 36 of this bill authorizes a powerholder of a power of appointment to represent and bind a person who is a permissible appointee or a takertakeExisting inlaw defaultsets forth that the laws of appointment.this State govern the validity and construction of a trust in certain situations.

Existing law setsfurther forthprohibits thata trust instrument or designation from extending the lawsduration of thisthe Statetrust governbeyond the validityrule andagainst constructionperpetuities ofthat ais otherwise applicable to the trust inat certainthe situations.time of its creation.

Existing law further prohibits a trust - *AB286_R2* – 6 – instrument or designation from extending the duration of the trust beyond the rule against perpetuities that is otherwise applicable to the trust at the time of its creation.

arbitration of certain disputes between or among certain parties is enforceable.g the (NRS 164.930) Existing law requiresprovides anthat agreement,a includingprovision anin agreementa requiringwill aor persontrust toinstrument submitrequiring tothe arbitration of anycertain disputedisputes arising between theor partiesamong tocertain theparties agreement,is toenforceable. include a provision indicating that the person has affirmatively agreed to the arbitration requirement.

(NRS 597.995)164.930) SectionExisting 38law ofrequires thisan billagreement, including an agreement requiring a person to submit to arbitration provisionof inany dispute arising between the parties to the agreement, to include a willprovision orindicating trust.that the person has affirmatively agreed to the arbitration requirement.

(NRS 597.995) Section 4538 of this bill makesclarifies atthat this affirmative agreement to arbitration requirement does not apply to conforming- change.80th Session (2019) – 6 – an arbitration provision in a will or trust.

ExistingSection law45 authorizesof thethis termsbill ofmakes a trustconforming instrumentchange. to expand, restrict, eliminate or otherwise vary the rights and interests of beneficiaries in certain manners that are not illegal or against public policy.

Existing law authorizes the terms of a trust instrument to expand, restrict, manners that are not illegal or against public policy.

THEEXPLANATION PEOPLE– OFMatter THEin STATEbolded OFitalics NEVADA,is REPRESENTEDnew; IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sectionmatter 1.between brackets [omitted material] is material to be omitted.

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

(d) On the filing of a motion for summary judgment or a joinder thereto.............................................................................$200 (e) On the commencement of an action defined as a business matter pursuant to the local rules of practice and on the answer or appearance of any party in any such action or - *AB286_R2* – 7 – proceeding, to be paid by the party commencing, answering or appearing in the action or proceeding thereto......................$1,359 (f) On the commencement of:

or - 80th Session (2019) – 7 – (2) Any other action defined as “complex” pursuant to the local rules of practice,  and on the answer or appearance of any party in any such action or proceeding, to be paid by the party commencing, answering or appearing in the action or proceeding...................$349 (g) On the filing of a third-party complaint, to be paid by the filing party.............................................................................$135 (h) On the filing of a motion to certify or decertify a class, to be paid by the filing party.......................................................$349 (i) For the issuance of any writ of attachment, writ of garnishment, writ of execution or any other writ designed to enforce any judgment of the court................................................$10 2.

(3) Renovate or remodel existing facilities for the district court or a regional justice center that includes the district court;

- *AB286_R2* – 8 – (7) In a county whose population is less than 100,000, support court appointed special advocate programs for children, at the discretion of the judges of the judicial district;

- 80th Session (2019) – 8 – (8) In a county whose population is less than 100,000, support legal services to the indigent and to be used by the organization operating the program for legal services that receives the fees charged pursuant to NRS 19.031 for the operation of programs for the indigent;

4.each month, account for and pay to the county treasurer:fifth day of (a) In a county whose population is 100,000 or more, an amount equal to $10 of each fee collected pursuant to paragraphs (a) and (b) of subsection 1 during the preceding month.

Each clerk of the court shall, on or before the fifth day of each month, account for and pay to the county treasurer:

(a) In a county whose population is 100,000 or more, an amount equal to $10 of each fee collected pursuant to paragraphs (a) and (b) of subsection 1 during the preceding month.

2.substantially in the following form:o subsection 1 must be NOTICE OF EXECUTION YOUR PROPERTY IS BEING ATTACHED OR YOUR WAGES ARE BEING GARNISHED A court has determined that you owe money to ....................

The notice required pursuant to subsection 1 must be substantially in the following form:

NOTICE OF EXECUTION YOUR PROPERTY IS BEING ATTACHED OR YOUR WAGES ARE BEING GARNISHED A court has determined that you owe money to ....................

The judgment creditor has begun the procedure to collect that money by garnishing your wages, bank account and other - *AB286_R2* – 9 – personal property held by third persons or by taking money or other property in your possession.

- 80th Session (2019) – 9 – Certain benefits and property owned by you may be exempt from execution and may not be taken from you.

3.Division of Welfare and Supportive Services of theough the Department of Health and Human Services or a local governmental entity.

Payments for public assistance granted through the Division of Welfare and Supportive Services of the Department of Health and Human Services or a local governmental entity.

(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located, unless a valid waiver executed pursuant to NRS 115.010 is applicable to the judgment.

Eighty-two percent of the take-home pay for any workweek if your gross weekly salary or wage was $770 or - *AB286_R2*80th Session (2019) – 10 – less on the date the most recent writ of garnishment was issued, or seventy-five percent of the take-home pay for any workweek if your gross weekly salary or wage exceeded $770 on the date the most recent writ of garnishment was issued, unless the weekly take-home pay is less than 50 times the federal minimum hourly wage, in which case the entire amount may be exempt.

(a) An individual retirement arrangement which conforms with or is maintained pursuant to the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

and (e) A trust forming part of a qualified tuition program pursuant to chapter 353B of NRS, any applicable regulations adopted pursuant to chapter 353B of NRS and section 529 ofofs the Internal Revenue Code, 26 U.S.C.

All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any - 80th Session (2019) – 11 – arrearages in the payment of such support and maintenance to which the former spouse may be entitled.

- *AB286_R2* – 11 – 16.

(b) A present or future interest in the income or principal of a trust for which discretionary power is held by a trustee to determine whether to make a distribution from the trust, if the interest has not been distributed from the trust;

trust, if the (c) The power to direct dispositions of property in the trust, other than such a power held by a trustee to distribute property to a beneficiary of the trust;

A vehicle for use by you or your dependent which is specially equipped or modified to provide mobility for a personper19. with a permanent disability.

19.wiA prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

A prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

- 80th Session (2019) – 12 – 22.

Payments received as compensation for the loss of future earnings of the judgment debtor or of a person upon whom the judgment debtor is dependent at the time the payment is received, to the extent reasonably necessary for - *AB286_R2* – 12 – the support of the judgment debtor and any dependent of the judgment debtor.

25.provided by federal law or a similar state law.income credit 26.

A tax refund received from the earned income credit provided by federal law or a similar state law.

26.

PROCEDURE FOR CLAIMING EXEMPT PROPERTY If you believe that the money or property taken from you is exempt, you must complete and file with the clerk of the court an executed claim of exemption.

The objection to the claim of - 80th Session (2019) – 13 – exemption and notice for the hearing to determine the issue of exemption must be filed within 8 judicial days after the claim of exemption is served on the judgment creditor by mail or in person and served on the judgment debtor, the sheriff and any garnishee not less than 5 judicial days before the date set for the hearing.

The hearing to determine whether the property or - *AB286_R2* – 13 – money is exempt must be held within 7 judicial days after the objection to the claim of exemption and notice for the hearing is filed.

You may be able to have your property released more quickly if you mail to the judgment creditor or the attorney of the judgment creditor written proof that the property isisrney of exempt.

(a) Private libraries, works of art, musical instruments and jewelry not to exceed $5,000 in value, belonging to the judgment debtor or a dependent of the judgment debtor, to be selected by the jud(b) Necessary andhouseholdly pgoods,s anfurnishings, electronics, wearing apparel, other personal effects and yard equipment, not to exceed $12,000 in value, belonging to the judgment debtor or a dependent of the judgment debtor, andto allbe familyselected picturesby andthe keepsakes.judgment debtor.

(b) Necessary household goods, furnishings, electronics, wearing apparel, other personal effects and yard equipment, not to exceed $12,000 in value, belonging to the judgment debtor or a dependent of the judgment debtor, to be selected by the judgment debtor.

- 80th Session (2019) – 14 – (e) The cabin or dwelling of a miner or prospector, the miner’s or prospector’s cars, implements and appliances necessary for carrying on any mining operations and the mining claim actually worked by the miner or prospector, not exceeding $4,500 in total value.

- *AB286_R2* – 14 – (g) For any workweek, 82 percent of the disposable earnings of a judgment debtor during that week if the gross weekly salary or wage of the judgment debtor on the date the most recent writ ofofr garnishment was issued was $770 or less, 75 percent of the disposable earnings of a judgment debtor during that week if the gross weekly salary or wage of the judgment debtor on the date the most recent writ of garnishment was issued exceeded $770, or 50 times the minimum hourly wage prescribed by section 206(a)(1) of the federal Fair Labor Standards Act of 1938, 29 U.S.C.

(2) “Earnings” means compensation paid or payable for personal services performed by a judgment debtor in the regular course of business, including, without limitation, compensation designated as income, wages, tips, a salary, a commission or a bonus.

The term includes compensation received by a judgment a debtor that is in the possession of the judgment debtor, compensation held in accounts maintained in a bank or any other financial institution or, in the case of a receivable, compensation that is due the judgment debtor.

(j) All courthouses, jails, public offices and buildings, lots, grounds and personal property, the fixtures, furniture, books, papers - 80th Session (2019) – 15 – and appurtenances belonging and pertaining to the courthouse, jail and public offices belonging to any county of this State, all cemeteries, public squares, parks and places, public buildings, town halls, markets, buildings for the use of fire departments and military organizations, and the lots and grounds thereto belonging and appertaining, owned or held by any town or incorporated city, or dedicated by the town or city to health, ornament or public use, or for the use of any fire or military company organized under the laws of this State and all lots, buildings and other school property owned by a(k) schoolAll districtmoney, andbenefits, devotedprivileges toor publicimmunities schoolaccruing purposes.or in any manner growing out of any life insurance.

- *AB286_R2* – 15 – (k) All money, benefits, privileges or immunities accruing or in any manner growing out of any life insurance.

(n) All money reasonably deposited with a landlord by the judgment debtor to secure an agreement to rent or lease a dwelling that is used by the judgment debtor as his or her primary residence, except that such money is not exempt with respect to a landlord or the landlord’sagreement successorto inrent interestor wholease seeksthe dwelling.ks to enforce the terms of (o) All property in this State of the agreementjudgment debtor where the judgment is in favor of any state for failure to rentpay that state’s income tax on benefits received from a pension or leaseother theretirement dwelling.plan.

(o) All property in this State of the judgment debtor where the judgment is in favor of any state for failure to pay that state’s income tax on benefits received from a pension or other retirement plan.

- 80th Session (2019) – 16 – (1) An individual retirement arrangement which conforms with or is maintained pursuant to the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

§ 408, including, without limitation, an inherited simplifiedsimpli(3) employeeA pensioncash or deferred arrangement plan which is qualified and maintained pursuant to the Internal Revenue Code, including, without limitation, an inherited cash or deferred arrangement plan;

(3)(4) A cashtrust forming part of a stock bonus, pension or deferredprofit- arrangementsharing plan which is qualified and maintained pursuant to thesections Internalet Revenueseq. Code, including, without limitation, an inherited cash or deferred arrangement plan;

- *AB286_R2* – 16 – (4) A trust forming part of a stock bonus, pension or profit- sharing plan which is qualified and maintained pursuant to sections 401 et seq.

(t) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in thethence of a payment of such support and maintenance to which the former spouse may be entitled.

- 80th Session (2019) – 17 – (w) Payments received as compensation for the loss of future earnings of the judgment debtor or of a person upon whom the judgment debtor is dependent at the time the payment is received, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

(y) Payments received pursuant to the federal Social Security Act, including, without limitation, retirement and survivors’ benefits, supplemental security income benefits and disability insuranceins(z) benefits.Any personal property not otherwise exempt from execution pursuant to this subsection belonging to the judgment debtor, including, without limitation, the judgment debtor’s equity in any property, money, stocks, bonds or other funds on deposit with a financial institution, not to exceed $10,000 in total value, to be selected by the judgment debtor.

(z) Any personal property not otherwise exempt from execution pursuant to this subsection belonging to the judgment debtor, including, without limitation, the judgment debtor’s equity in any property, money, stocks, bonds or other funds on deposit with a - *AB286_R2* – 17 – financial institution, not to exceed $10,000 in total value, to be selected by the judgment debtor.

(2) A distribution interest in the trust as defined in NRS 163.4155 that is a discretionary interest as described in NRS 163.4185,163.418(3) ifA power of appointment in the interesttrust hasas notdefined in NRS 163.4157 regardless of whether the power has been distributed;exercised;

(3) A power of appointment in the trust as defined in NRS 163.4157 regardless of whether the power has been exercised;

and - 80th Session (2019) – 18 – (2) Notwithstanding a beneficiary’s right to enforce a support interest, a distribution interest in the trust as defined in NRS 163.4155 that is a support interest as described in NRS 163.4185, if the interest has not been distributed.

(gg) Compensation that was payable or paid pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS as providedpro(hh) inUnemployment compensation benefits received pursuant to NRS 616C.205.612.710.

(hh) Unemployment compensation benefits received pursuant to NRS 612.710.

- *AB286_R2* – 18 – (kk) Public assistance provided through the Department of Health and Human Services pursuant to NRS 422.291 and 422A.325.

31.045property 1.of the defendant may occur only if:achment by attaching (a) The judgment creditor serves the defendant with notice of the execution when the notice of the hearing is served pursuant to NRS 31.013;

Execution on the writ of attachment by attaching property of the defendant may occur only if:

(a) The judgment creditor serves the defendant with notice of the execution when the notice of the hearing is served pursuant to NRS 31.013;

- 80th Session (2019) – 19 – NOTICE OF EXECUTION YOUR PROPERTY IS BEING ATTACHED OR YOUR WAGES ARE BEING GARNISHED Plaintiff, ....................

To secure satisfaction of judgment, the court has ordered the garnishment of your wages, bank account or other personal property held by third persons or the taking of money or other property in youryourhird possession.

Payments received pursuant to the federal Social Security Act, including, without limitation, retirement and - *AB286_R2* – 19 – survivors’ benefits, supplemental security income benefits and disability insurance benefits.

Payments received as disability, illness or unem7.oyPayments received as unemployment benefits.compensation.

7.

Payments received as unemployment compensation.

(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located, unless a valid - 80th Session (2019) – 20 – waiver executed pursuant to NRS 115.010 is applicable to the judgment.

A vehicle, if your equity in the vehicle is less than $15,000.$15,12..

12.

- *AB286_R2* – 20 – 13.

(a) An individual retirement arrangement which conforms with the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

(c) A cash or deferred arrangement that is a qualified plan purs(d) A trust forming part of a stock bonus, pension or profit-sharing plan that is a qualified plan pursuant to thesections Internalet Revenueseq. Code;

(d) A trust forming part of a stock bonus, pension or profit-sharing plan that is a qualified plan pursuant to sections 401 et seq.

- 80th Session (2019) – 21 – 14.

16.provision:egardless of whether a trust contains a spendthrift (a) A present or future interest in the income or principal of a trust that is a contingent interest, if the interest has not been satisfied or removed;

Regardless of whether a trust contains a spendthrift provision:

(a) A present or future interest in the income or principal of a trust that is a contingent interest, if the interest has not been satisfied or removed;

and - *AB286_R2* – 21 – (e) Any power held by the person who created the trust.

(a) A present or future interest in the income or principal of a trust that is a mandatory interest in which the trustee does not have discretion concerning whether to make the distribution from the trust, if the interest has not been dis(b) A present or future interest in the income or principal of a trust that is a support interest in which the standard for distribution may be interpreted by the trustee or a court, if the interest has not been distributed from the trust;trust.

and (b) A present or future interest in the income or principal of a trust that is a support interest in which the standard for distribution may be interpreted by the trustee or a court, if the interest has not been distributed from the trust.

Payments, in an amount not to exceed $16,150, received as compensation for personal injury, not including compensation for pain and suffering or actual pecuniary loss, by the judgment debtor or by a person upon whom the - 80th Session (2019) – 22 – judgment debtor is dependent at the time the payment is received.

Payments received as compensation for the loss of future earnings of the judgment debtor or of a person upon whom the judgment debtor is dependent at the time the payment is received, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

If - *AB286_R2* – 22 – you cannot afford an attorney, you may be eligible for assistance through ....................

If you do not wish to consult an attorney or receive legal services from an organization that provides assistance to persons who qualify, you may obtain the form to be used toce to claim an exemption from the clerk of the court.

9 PROCEDURE FOR CLAIMING EXEMPT PROPERTY If you believe that the money or property taken from you is exempt or necessary for the support of you or your family, you must file with the clerk of the court on a form provided by the clerk an executed claim of exemption.

A copy of the claim of exemption must be served upon the sheriff, the garnishee and the judgment creditor within 10 days after the notice of execution or garnishment is served on you by mail pursuant to NRS 21.076 which identifies the specific property - 80th Session (2019) – 23 – that is being levied on.

The property must be released by the garnishee or the sheriff within 9 judicial days after you serve the claim of exemption upon the sheriff, garnishee and judgment creditor, unless the sheriff or garnishee receives a copy of an objection to the claim of exemption and a notice for a hearing to determine the issue of exemption.

If thisthise happens, a hearing will be held to determine whether the property or money is exempt.

Such proof may include, without limitation, a letter from the government, an annual statement from a pension fund, receipts for payment, copies of checks,checks,t records from financial institutions or any other document which demonstrates that the money in your account is exempt.

IF YOU DO NOT FILE THE EXECUTED CLAIM OF EXEMPTION WITHIN THE TIME SPECIFIED, YOUR - *AB286_R2* – 23 – PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

5 If you received this notice with a notice of a hearing for attachment and you believe that the money or property which would be taken from you by a writ of attachment is exempt or necessary for the support of you or your family, you are entitled to describe to the court at the hearing why you believe your property is exempt.

- 80th Session (2019) – 24 – IF YOU DO NOT FILE THE MOTION BEFORE THE TRIAL, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE PLAINTIFF, EVEN IF THE PROPERTY OR MONEY IS EXEMPT OR NECESSARY FOR THE SUPPORT OF YOU OR YOUR FAMILY.

In determining whether a nonvested property interest or a power of appointment is valid under paragraph (a) of subsection 1, paragraph (a) of subsection 2 or paragraph (a) of subsection 3, the possibilityis thatdisregarded.t a child will be born to a person after his or her death is[5. disregarded.

- *AB286_R2* – 24 – [5.

or (b) The expiration of a period of time that exceeds or might exceed 21 years after the death of the survivor of lives in being at the creation of the trust or other property arrangement, - 80th Session (2019) – 25 –  that language is inoperative to the extent it produces a period of time that exceeds 21 years after the death of the survivor of the specified lives.] Sec.

(b)(c) A separationspouse’s orelection;rce divorce settlement;

(c) A spouse’s election;

A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government,gov6.nmeA property interest in or governmentala agencypower of appointment with respect to a trust or subdivision;other property arrangement if such a trust or other property arrangement:

6.(a) Was established for eleemosynary purposes;

A property interest in or a power of appointment with respect to a trust or other property arrangement if such a trust or other property arrangement:

- *AB286_R2* – 25 – (a) Was established for eleemosynary purposes;

A nonvested property interest in or a power of appointment with respect to a trust or other property arrangement forming part of a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses, to which contributions are made for the purpose of distributing to or for the benefit of the participants or - 80th Session (2019) – 26 – their beneficiaries or spouses the property, income or principal in the trust or other property arrangement, except a nonvested property interest or a power of appointment that is created by an election of a participant or a beneficiary or spouse;

Except as otherwise provided in NRS 21.090 and other applicable law, a transferee of a nonprobate transfer is liable to the probate estate of the decedent for allowed claims against thatthatble to decedent’s probate estate to the extent the estate is insufficient to satisfy those claims.

Unless otherwise provided by the trust instrument, interests of beneficiaries in all trusts incurring liabilities under this section abate as necessary to satisfy the liability, as if all the trusttrustsection instruments were a single will and the interests were devises under it.

If a nonprobate transferee is a spouse or a minor child, the nonprobate transferee may petition the court to be excluded from the - *AB286_R2* – 26 – liability imposed by this section as if the nonprobate property received by the spouse or minor child were part of the decedent’s estate.

A provision made in one instrument may direct the apportionment of the liability among the nonprobate transferees - 80th Session (2019) – 27 – taking under that or any other governing instrument.

If a probate proceeding is pending at the time of filing and it has been determined by a final order issued by the probate court that there are insufficient assets to pay a valid creditor, a proceeding underpersons:is this section may be commenced by one of the following persons:(a) The personal representative of the decedent’s estate.

(a) The personal representative of the decedent’s estate.

(2) If a creditor successfully establishes an entitlement to payment under this section and collects nonprobate transfers, thetheto court must order the reimbursement of the costs reasonably incurred by the creditor, including attorney’s fees, from the transferee from whom the payment is to be made, subject to the limitations of subsection 2, or from the estate as a cost of administration, or partially from each, as the court deems just.

- *AB286_R2* – 27 – 9.

- 80th Session (2019) – 28 – (a) If a probate proceeding is pending in which notice to creditors has been given at the time of filing a proceeding under this section:

(1) As to a creditor whose claim was properly and timely filed, allowed by the personal representative or partially allowed by the personal representative, and accepted by the creditor pursuant to NRS 147.160, within 60 days after the probate court enters an order confirming the amount of payment of the approved claim that is final and no longer subject to reconsideration or appeal or within 1 year afteraf(2) theAs decedent’sto death,a creditor:ath, whichever is later.

(2) As to a creditor:

(b) If an action had been commenced against the decedent before the decedent’s death, the creditor receives a judgment against the decedent’s estate and the creditor has filed a proper and timely creditor’s claim against the estate, within 60 days after the probate court enters an order confirming the amount of payment of the adjudicated claim that is final and no longer subject to reconsiderationwhichever oris appeallater.appeal or within 1 year after the decedent’s death, whichever(c) isAs later.to the recovery of benefits paid for Medicaid, within 3 years after the decedent’s death.

(c) As to the recovery of benefits paid for Medicaid, within 3 years after the decedent’s death.

- *AB286_R2* – 28 – (a) Payment or delivery of assets by a financial institution, registrar or other obligor to a nonprobate transferee in accordance with the terms of the governing instrument controlling the transfer - 80th Session (2019) – 29 – releases the obligor from all claims for amounts paid or assets delivered.

(a)(a)(1) AProperty creditortransferred haspursuant noto claima against:power of appointment exercised by a decedent unless [it] the power of appointment was [exercisable] actually exercised in favor of the decedent or the decedent’s estate.

(1) Property transferred pursuant to a power of appointment exercised by a decedent unless [it] the power of appointment was [exercisable] actually exercised in favor of the decedent or the decedent’s estate.

(I) An individual retirement arrangement which conforms with or is maintained pursuant to the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

(III) A cash or deferred arrangement plan which is qualified and maintained pursuant to the Internal Revenue Code, including, without limitation, an inherited cash or deferred arrangementarrangemen(IV) plan;A trust forming part of a stock bonus, pension or profit-sharing plan which is qualified and maintained pursuant to sections 401 et seq.

(IV) A trust forming part of a stock bonus, pension or profit-sharing plan which is qualified and maintained pursuant to sections 401 et seq.

- *AB286_R2*80th Session (2019) – 2930 – (3) Property transferred pursuant to a beneficiary designation by a decedent which transfers money, benefits or privileges that accrue in any manner out of life insurance.

(5) A trust, a beneficial interest of the decedent under a trust or amount payable from a trust if the trust was created by someone other than the decedent, except to enforce a valid assignment of the decedent’strust.nt’s beneficial interest under a trust that is not a spendthrift trust.(6) An irrevocable trust or amounts payable from a trust if the trust was properly created as a valid spendthrift trust under chapter 166 of NRS, except with respect to property transferred to the trust by the decedent to the extent permitted under subsections 1, and 3 of NRS 166.170.

(6) An irrevocable trust or amounts payable from a trust if the trust was properly created as a valid spendthrift trust under chapter 166 of NRS, except with respect to property transferred to the trust by the decedent to the extent permitted under subsections 1, 2 and 3 of NRS 166.170.

The protection provided by this subparagraph applies to information that relates to the ownership interest of the beneficiary in the property and the beneficiary’s right to sell, encumber and transfer good title to a purchaser or lender and does notinstruments relieveof arecord purchaserrespecting or lender from the noticeproperty.ice imparted by instruments13. of record respecting the property.

13.

Notwithstanding any other provision of law, the proceeds of $550,000 from the sale of a homestead pursuant to subsection 2 or 3 of NRS 115.050 are only exempt from execution if:

- 80th Session (2019) – 31 – 1.

- *AB286_R2* – 30 – (a) Identified not later than 45 days after the sale of the homestead;

Whenever execution has been issued against the property of a party claiming the property as a homestead, and the creditor in the judgment makes an oath before the judge of theand the district court of the county in which the property is situated that the amount of equity held by the claimant in the property exceeds, to the best of the creditor’s information and belief, the sum of $550,000, the judge shall, upon notice to the debtor, appoint three disinterested and competent persons as appraisers to estimate and report as to the amount of equity held by the claimant in the property and, if the amount of equity exceeds the sum of $550,000, determine whether the property can be divided so as to leave the property subject to the homestead exemption without material injury.

If it appears that the property cannot be thus divided, and the amount of equity held by the claimant in the property exceeds the exemption allowed by this chapter, the judge shall order the entire property to be sold, and out of the proceeds the sum of $550,000 to be paid to the defendant in execution, and the excess to be applied to the satisfaction on the execution.making the sale.d under $550,000 may be received by the officer 3.

No bid under $550,000 may be received by the officer making the sale.

3.

- 80th Session (2019) – 32 – Sec.

A trust instrument may provide that community property or separate property transferred into an irrevocable trust of which both spouses are [current permissible] distribution beneficiaries , as defined in NRS 163.415, remains community - *AB286_R2* – 31 – property or separate property, as applicable, during the marriage.

Any community property or separate property, including, without limitation, any income, appreciation and proceeds thereof, that is distributed or withdrawn from a trust instrument containing such a provisionapplicable.emains remains community property or separate property, as applicable.2.

2.

[Wills may be proved and letters granted in the county where the decedent was a resident at the time of death, whether death occurred in that county or elsewhere, and the district court of that county has exclusive jurisdiction of the settlement of such estates, whether the estate is in one or more counties.

- 80th Session (2019) – 33 – (a) The person named as personal representative or trustee in the will;

After a properly noticed hearing is held, the district court [to which application is first made] that first assumes jurisdiction of the settlement of an estate has exclusive jurisdiction of the - *AB286_R2* – 32 – settlement of [estates of nonresidents.] that estate, including, without limitation:

(a) The proving of wills;

(1) The person named as personal representative or trustee in the will;

andanderson named as personal representative or trustee (2) The heirs, devisees, interested persons or beneficiaries to the decedent or estate and their legal counsel.

- 80th Session (2019) – 34 – 3.

-signed *AB286_R2*by –the 33witness –and 4.filed, and is admissible in evidence in any contest of the will if the witness has died or permanently moved from the State.

The testimony of each witness must be reduced to writing, signed by the witness and filed, and is admissible in evidence in any contest of the will if the witness has died or permanently moved from the State.

- 80th Session (2019) – 35 – 6.

Except as otherwise provided in [subsections 3 and] subsection 4, a no-contest clause in a will must be enforced, to the greatest extent possible, by the court according to the terms expressly stated in the no-contest clause without regard to the presence or absence of probable cause for, or the good faith or bad faith of the devisee in, taking the action prohibited by the no- contest clause.

A no-contest clause in a will must be enforced bybyno- the court because public policy favors enforcing the intent of the testator.

[However, because public policy does not favor forfeitures, - *AB286_R2* – 34 – a no-contest clause must be strictly construed by the court and must not be extended beyond the plain meaning of the express provisions of the will.] 2.

(a)(b) Conduct otherwhich thanis formalunrelated courtto action;the will itself, including, without limitation:

and (b) Conduct which is unrelated to the will itself, including, without limitation:

Notwithstanding any provision to the contrary in the will, a no-contest clause in a will must not be enforced by a court and a devisee’s share must not be reduced or eliminated under a - 80th Session (2019) – 36 – no-contest clause in a will because :

[(c)] (3) Obtain court instruction with respect to the proper administration of the estate or the construction or legal effect of the willwil[(d)] or(4) Enforcens ththeoffiduciary duties of the provisionspersonal thereof;representative.

or [(d)] (4) Enforce the fiduciary duties of the personal representative.

Notwithstanding any provision to the contrary in the will, a devisee’s share must not be reduced or eliminated under a no- contest clause because the devisee institutes legal action seeking to - *AB286_R2* – 35 – invalidate a will if the legal action is instituted and maintained in good faith and based on probable cause that would have led a reasonable person, properly informed and advised, to] (b) The court determines by clear and convincing evidence that the conduct of the devisee was:

For the purposes of this paragraph, legal action is based on probable cause where, based upon the facts and circumstances available to the devisee who commences such legallegalnd action, a reasonable person, properly informed and advised, would conclude that the will is invalid.

- 80th Session (2019) – 37 – 7.

(1) Resume distributions that were suspended pursuant to paragraph (a) at any time;

ororns that were suspended pursuant to (2) Continue to suspend those distributions.

- *AB286_R2* – 36 – 8.

(b)delay Provisionsdistributions into a willdevisee;permit that permit a personal representative to delay(c) distributionsProvisions toin a devisee;will that require the arbitration of disputes involving the will;

(c) Provisions in a will that require the arbitration of disputes involving the will;

Notwithstanding any other - 80th Session (2019) – 38 – provision of law, if it appears to the court that the personal representative otherwise may take [some] action that would jeopardize unreasonably the interest of the petitioner , [or] of some other interested person or the estate, the court may enter the [temporary] ex parte order.

[The matter] Any ex parte orders entered pursuant to subsection 1 must be set for hearing within 10 days after entry of the [temporary] ex parte order, unless the parties otherwise agree, or on a date the court otherwise determines is in the best interest of the estate.

- *AB286_R2* – 37 – 4.

146.020 [Upon the filing of the inventory or at any time thereafterthe1.aftThe duringcourt, on its own motion or upon petition by an interested person, may, if deemed advisable considering the administrationneeds and resources of the estate,surviving the]spouse, 1.minor child or minor children, set apart for the use of the surviving spouse, minor child or minor children of the decedent all of the personal property which is exempt by law from execution, and shall, in accordance with NRS 146.050, set apart the homestead, as designated by the general homestead law then in force, whether the homestead has theretofore previously been selected as required by law or not, and the property thus set apart is not subject to administration.

The court, on its own motion or upon petition by an interested person, may, if deemed advisable considering the needs and resources of the surviving spouse, minor child or minor children, set apart for the use of the surviving spouse, minor child or minor children of the decedent all of the personal property which is exempt by law from execution, and shall, in accordance with NRS 146.050, set apart the homestead, as designated by the general homestead law then in force, whether the homestead has theretofore previously been selected as required by law or not, and the property thus set apart is not subject to administration.

If, after setting apart the property pursuant to subsection 1, the remaining assets of the estate do not exceed $100,000 and may be set aside without administration pursuant to NRS 146.070, the - 80th Session (2019) – 39 – court shall set aside the remaining assets of the estate without administration pursuant to the procedure set forth in NRS 146.070.

If, after setting apart the property pursuant to subsection 1, the remaining assets of the estate exceed $100,000 and may not be set aside without administration pursuant to NRS 146.070, the court shall administer the remaining assets of the estate pursuant to this title as if the remaining assets of the estate are the only assets of the estate.

- *AB286_R2* – 38 – 1.

(b) The governing law adopted by the instrument exercising, releasing or disclaiming the power, or revoking or amending the exercise, release or disclaimer of the power;

- 80th Session (2019) – 40 – 2.

162B.320appointment 1.that permits appointment to the powerholder or the of powerholder’s estate may make any appointment, including an appointment in trust or creating a new power of appointment, that the powerholder could make in disposing of the powerholder’s own property.

A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder’s estate may make any appointment, including an appointment in trust or creating a new power of appointment, that the powerholder could make in disposing of the powerholder’s own property.

- *AB286_R2* – 39 – (a) Make an appointment in any form, including an appointment in trust, in favor of a permissible appointee;

162B.365 A powerholder may revoke or amend an exercise of a power of appointment [only to the extent that:] unless:unless:ise of 1.

1.

The property is subject to a present exercisable power of appointment that has been delivered to the permissible appointee in whose favor the power was exercised, regardless of whether - 80th Session (2019) – 41 – such delivery was made outright, in trust or as custodial property pursuant to chapter 167 of NRS.

and (b) The powerholder’s estate, to the extent the estate is insufficient, subject to the right of a decedent to direct the source from which liabilities are paid.] , unless the power of appointment was actually exercised in favor of the decedent or the decedent’s estate pursuant to subparagraph (1) of paragraph (a) of subsection 12 of NRS 111.779.

- *AB286_R2* – 40 – Sec.

On petition or ex parte application of a beneficiary or trustee, the court, with or without bond, may enter an ex parte order restraining a trustee from performing specified acts of administration, disbursement or distribution, or exercising any powers or discharging any duties of the office, or enter any other order to secure proper performance of the duties of the office to be effective until further order of the court.

Notwithstanding anyanyto be other provision of law, if it appears to the court that the trustee otherwise may take action that would jeopardize unreasonably the interest of the petitioner, another beneficiary or the trust, the court may enter the ex parte order.

Notice of entry of the ex parte order entered pursuant to subsection 1 must be given by the petitioner or applicant to the - 80th Session (2019) – 42 – trustee and the attorney of record of the trustee, if any, to any other party named as a party in the ex parte order and as otherwise directed by the court.

The court may, at any time, terminate an ex parte order entered pursuant to subsection 1 on its own motion or upon petition of the trustee if it no longer appears to the court that the trustee otherwise may take action that would jeopardize unreasonably the interest of the petitioner, another beneficiary or the trust.

[However, because public policy does not favor forfeitures, a no-contest clause must be strictly construed by the court and must - *AB286_R2* – 41 – not be extended beyond the plain meaning of the express provisions of the trust.] 2.

[A no-contest clause must be construed to carry out the settlor’s intent to the extent such intent is clear and unambiguous.] No extrinsic evidence is admissible to establish the settlor’s intent concerning the no-contest clause [.] to the extent such intent is clear and unambiguous.

The provisions of this subsection do notnotis prohibit extrinsic evidence from being admitted for any other purpose authorized by law.

- 80th Session (2019) – 43 – (2) Interference with the administration of another trust or a business entity;

Notwithstanding any provision to the contrary in the trust, a no-contest clause in a trust must not be enforced by a court and a beneficiary’s share must not be reduced or eliminated under a no-contestbeneficiary clauseseeking inonly ato:]because trust because :

[of any action taken by the beneficiary seeking only to:] (a) A beneficiary acts to:

[(c)] (3) Obtain court instruction with respect to the proper administration of the trust or the construction or legal effect of the trust, [the provisions thereof or] a transfer of property into the - *AB286_R2* – 42 – trust, any document referenced in or affected by the trust, or any other trust-related instrument;

[4.beneficiary’s share must not be reduced or eliminated under a no-st, a contest clause in a trust because the beneficiary institutes legal action seeking to invalidate a trust, any document referenced in or affected by the trust, or any other trust-related instrument if the legal action is instituted and maintained in good faith and based on probable cause that would have led a reasonable person, properly informed and advised, to conclude that the trust, any document referenced in or affected by the trust, or other trust-related instrument is invalid.

Notwithstanding any provision to the contrary in the trust, a beneficiary’s share must not be reduced or eliminated under a no- contest clause in a trust because the beneficiary institutes legal action seeking to invalidate a trust, any document referenced in or affected by the trust, or any other trust-related instrument if the legal action is instituted and maintained in good faith and based on probable cause that would have led a reasonable person, properly informed and advised, to conclude that the trust, any document referenced in or affected by the trust, or other trust-related instrument is invalid.

- 80th Session (2019) – 44 – 6.] (b) The court determines by clear and convincing evidence that the conduct of the beneficiary was:

(2) Removing or replacing a trustee;

- *AB286_R2* – 43 – 5.

Where a beneficiary takes action, asserts a cause of action or asserts a request for relief and such action or assertion violates a no-contest clause in a trust, this section must not prevent thetheates enforcement of the no-contest clause unless the action, cause of action or request for relief claims one of the exceptions to enforcement set forth in subsection 4.

- 80th Session (2019) – 45 – (1) Resume distributions that were suspended pursuant to paragraph (a) at any time;

A no-contest clause applies to an amendment to the trust or trust-relatedexpressly documentincorporated evenin ifsuch thean no-contestamendment.t clause was not expressly8. incorporated in such an amendment.

8.

- *AB286_R2* – 44 – (b) “Trust” means the original trust instrument and each amendment made pursuant to the terms of the original trusttrusth instrument.

- 80th Session (2019) – 46 – (a) The right to be informed of the beneficiary’s interest for a period of time;

and (e) The provisions of general applicability to trusts and trust administration.adm2.istA trust is irrevocable [by the settlor] except to the extent that a right to amend the trust or a right to revoke the trust is expressly reserved by the settlor [.] or is granted to one or more other persons under the terms of the trust instrument.

2.

A trust is irrevocable [by the settlor] except to the extent that a right to amend the trust or a right to revoke the trust is expressly reserved by the settlor [.] or is granted to one or more other persons under the terms of the trust instrument.

This section must be liberally construed to give maximum effect to the principle ofinstruments.f freedom of disposition and to the enforceability of trust instruments.Sec.

- *AB286_R2* – 45 – Sec.

- 80th Session (2019) – 47 – 3.

(a) The trustee commits or threatens to commit a breach of trust;

The trustee commits or threatens to commit a breach of (b) Lack of cooperation between cotrustees substantially impairs the administration of the trust;

(h) To impose an equitable lien or a constructive trust on trust property.

impose an equitable lien or a constructive trust on trust (i) To trace trust property that has been wrongfully disposed of and recover the property or its proceeds.

- *AB286_R2* – 46 – [2.

Notwithstanding any other provision of law governing temporary injunctions, if it appears to the court that the trustee otherwise may take some action that would jeopardize unreasonably the interest of the petitioner, another beneficiary or the trust, the court may enter - 80th Session (2019) – 48 – the temporary order.

Notice of entry of the temporary order must be given by the petitioner to the trustee and the attorney of record of the trustee, if any, to any other party named as a party in the temporary order and as otherwise directed by the court.]cou4..] 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.

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 settlor of a trust affected by NRS 163.010 to 163.200, inclusive, and section 22 of this act may, by provision in the instrument creating the trust if the trust was created by a writing, or by oral statement to the trustee at the time of the creation of the trust if the trust was created orally, or by an amendment of the trust if the settlor reserved the power to amend the trust, relieve his or her trustee from any or all of the duties, restrictions and liabilities which would otherwise be imposed upon the trustee by NRS 163.010 to 163.200, inclusive, and section 22 of this act, or alter or deny to his or her trustee any or all of the privileges and powers conferred upon - *AB286_R2* – 47 – the trustee by NRS 163.010 to 163.200, inclusive, and section 22 of this act, or add duties, restrictions, liabilities, privileges or powers to those imposed or granted by NRS 163.010 to 163.200, inclusive, and section 22 of this act, but no act of the settlor relieves a trustee from the duties, restrictions and liabilities imposed upon the trustee by NRS 163.030, 163.040 and 163.050.

- 80th Session (2019) – 49 – 2.

Sec.163.170.

28.NA beneficiary of a trust affected by NRS 163.010 to 163.200, inclusive, and section 22 of this act may, if of full legal capacity and acting upon full information, by written instrument delivered to the trustee, relieve the trustee as to that beneficiary from any or all of the duties, restrictions and liabilities which would otherwise be imposed on the trustee by NRS 163.010 to 163.200, inclusive, and section 22 of this act, except as to the duties, restrictions and liabilities imposed by NRS 163.030, 163.040 and 163.050.

NRS 163.170 is hereby amended to read as follows:

163.170 A beneficiary of a trust affected by NRS 163.010 to 163.200, inclusive, and section 22 of this act may, if of full legal capacity and acting upon full information, by written instrument delivered to the trustee, relieve the trustee as to that beneficiary from any or all of the duties, restrictions and liabilities which would otherwise be imposed on the trustee by NRS 163.010 to 163.200, inclusive, and section 22 of this act, except as to the duties, restrictions and liabilities imposed by NRS 163.030, 163.040 and 163.050.

163.190.

NIf a trustee violates any of the provisions of NRS 163.010 to 163.200, inclusive, and section 22 of this act, the trustee may be removed and denied compensation in whole or in part, and any beneficiary, cotrustee or successor trustee may treat the violation as a breach of trust.

30.

NRS 163.190 is hereby amended to read as follows:

163.190 If a trustee violates any of the provisions of NRS 163.010 to 163.200, inclusive, and section 22 of this act, the trustee may be removed and denied compensation in whole or in part, and any beneficiary, cotrustee or successor trustee may treat the violation as a breach of trust.

Sec.

163.200 NRS 163.010 to 163.200, inclusive, and section 22 of this act must be so interpreted and construed as to effectuate their - *AB286_R2* – 48 – general purpose to make uniform the law of those states which enact them.

Except as otherwise provided in this section, unless the terms of a testamentary instrument or irrevocable trust - 80th Session (2019) – 50 – provide otherwise, a trustee with discretion or authority to distribute trust income or principal to or for a beneficiary of the trust may exercise such discretion or authority by appointing the property subject to such discretion or authority in favor of a second trust as provided in this section.

(a) To or for whom a distribution of income or principal may be mad(b) To or for whom a distribution of income or principal may be made in the future from the original trust at a time or upon the happening of an event specified under the [first] original trust;

(b) To or for whom a distribution of income or principal may be made in the future from the original trust at a time or upon the happening of an event specified under the [first] original trust;

(b) The property to be appointed is subject to a power of withdrawal which is held by a beneficiary of the original trust and may be executed at the time of the proposed appointment, unless after the exercise of such appointment, the beneficiary of the original trust’s power of withdrawal is unchanged with respect to the trust property.

(d) [Property held for the benefit of one or more beneficiaries under both the original and the second trust has a lower value than - *AB286_R2* – 49 – the value of the property held for the benefit of the same beneficiaries under only the original trust, unless:

- 80th Session (2019) – 51 – (1) The benefit provided is limited to a specific amount or periodic payments of a specific amount;

§ 2503(c), unless the second trust provides that the beneficiary’s remainder interest must vest not later than the date upon which such interest would have vested under the terms of the original trust.

or (3) The trustee’s discretion to make distributions to himself or herself can only be exercised with the consent of a cotrustee or a person holding an adverse interest and under the terms of the second trust the trustee’s discretion to make distributions to himself or herself is not limited by an ascertainable standard and may be exercisedexe(b) withoutUnder consent;the terms of the original trust or pursuant to law governing the administration of the original trust, the trustee of the original trust does not have discretion to make distributions that will discharge the trustee’s legal support obligations but under the second trust the trustee’s discretion is not limited.

or (b) Under the terms of the original trust or pursuant to law governing the administration of the original trust, the trustee of the original trust does not have discretion to make distributions that will discharge the trustee’s legal support obligations but under the second trust the trustee’s discretion is not limited.

§ 672(c), to a beneficiary, may not exercise the authority to appoint property of the original trust to a second trust to the extent that the exercise of the authority by such trustee would have the effect of increasing the distributions that can be made from - *AB286_R2*80th Session (2019) – 5052 – the second trust to such beneficiary or group of beneficiaries that held the power to remove the trustee of the original trust and replace such trustee with a related or subordinate person, unless the distributions that may be made from the second trust to such beneficiary or group of beneficiaries described in paragraph (a) of subsection 4 are limited by an ascertainable standard.

The provisions of subsections 4 and 5 do not prohibit a trustee who is not a beneficiary of the original trust or who may not be removed by the beneficiary or beneficiaries and replaced with a trustee that is related to or subordinate to a beneficiary from exercising the authority to appoint property of the original trust to a second trust pursuant to the provisions of subsection 1.

The power to appoint the property of the original trust pursuant to subsection 1 must be exercised by a writing, signed by the trustee and filed with the records of the trust.trust.ing, signed by 10.

10.

- 80th Session (2019) – 53 – 13.

The power to appoint property to another trust pursuant to subsection 1 is not a power to amend the trust and a trustee is not - *AB286_R2* – 51 – prohibited from appointing property to another trust pursuant to subsection 1 if the original trust is irrevocable or provides that it may not be amended.

A trustee exercising any power granted pursuant to this section may designate himself or herself or any other person permitted to act as a trustee as the trustee of the second trust.

§ 2041(b)(1)(A) or 2514(c)(1), and any regulationsreg(b) of“Pooled thetrust” Unitedmeans Statesa Treasurytrust promulgateddescribed thereunder.in 42 U.S.C.

(b)§nder. “Pooled trust” means a trust described in 42 U.S.C.

§ 1396p(d)(4)(C) that meets the requirements for such a trust under any law or regulation of this State relating to the treatment of trusts for purposes of eligibility for Medicaid or other needs-based public assistance.

If the trustee of the original trust establishes the second trust, then for purposes of creating the new second trust, the requirement of NRS 163.008 that the instrument be signed by the settlor shall be deemed to be satisfied by the signature of the - 80th Session (2019) – 54 – trustee of the [second] original trust.

- *AB286_R2* – 52 – (1) The original trust instrument [as the original trust] , as modified after an appointment of property made pursuant to this section;

§ 1396p(d)(4)(A) that meets the requirements for such a trust under any law or regulation of this State relating to the treatment of trusts forassistance.s purposes of eligibility for Medicaid or other needs-based public assistance.(e) “Third-party trust” means a trust that is:

(e) “Third-party trust” means a trust that is:

To be admissible as evidence of the intended disposition, the statementsta(a) orThe listdate mustof contain:its execution.

(a) The date of its execution.

- 80th Session (2019) – 55 – (d) A writing which has no significance apart from its effect upon the dispositions made by the trust.

Except as otherwise provided in this subsection, the statement or list may be used to dispose of all items of trust property, regardless of whether the trust property is real or - *AB286_R2* – 53 – personal property or tangible or intangible property.

(b) Cannot be used to direct the disposition of trust property that is above a value specified by the trust instrument;

ororoperty (c) Is not applicable to certain types of property, including, without limitation:

(a)(b) A fixedset yearlyamount compensation for eachthe trustee;term of service;trustee;

(b) A set amount for the term of service;

The trustee of a nontestamentary trust may after the death of the settlor of the trust cause to be published a notice in - 80th Session (2019) – 56 – the manner specified in paragraph (b) of subsection 1 of NRS 155.020 and mail a copy of the notice to known or readily ascertainable creditors.

- *AB286_R2* – 54 – NOTICE TO CREDITORS 3 Notice is hereby given that the undersigned is the duly appointed and qualified trustee of the ................

Trustee .....................................................Address..........................

Address (b) For a claim against the trust:

A creditor having a claim against the trust estate must file a claim with the undersigned at the address given below within 90 days after the first publication of this notice.

..........Trustee..........................

Trustee ...........................................

A person having a claim, due or to become due, against a settlor or the trust , as applicable, must file the claim with the trustee within 90 days after the mailing, for those required to be - 80th Session (2019) – 57 – mailed, or 90 days after publication of the first notice to creditors.

- *AB286_R2* – 55 – 4.

If the trustee knows or has reason to believe that the settlor received public assistance during the lifetime of the settlor, the trustee shall, whether or not the trustee gives notice to other creditors, give notice within 30 days after the death to thetheher Department of Health and Human Services in the manner provided in NRS 155.010.

Unless otherwise represented by counsel, a minor, incapacitated person, unborn person or person whose identity or location is unknown and not reasonably ascertainable may bebey or represented by another person who has a substantially similar interest with respect to the question or dispute.

A presumptive remainder beneficiary may represent and bind a beneficiary with a contingent remainder for the same purpose, in the same circumstance and to the same extent as an - 80th Session (2019) – 58 – ascertainable beneficiary may bind a minor, incapacitated person, unborn person or person who cannot be ascertained.

If a trust has a minor or incapacitated beneficiary who may not be represented by another person pursuant to this section, the custodial parent or guardian of the estate of the minor or incapacitated beneficiary may represent the minor or incapacitated beneficiary in any judicial proceeding or nonjudicial matter -only *AB286_R2*be –represented 56by –a pertainingparent or guardian if there is no material conflict of interest between the minor or incapacitated beneficiary and the parent or guardian with respect to the trust.question or dispute.

A minor or incapacitated beneficiary may only be represented by a parent or guardian if there is no material conflict of interest between the minor or incapacitated beneficiary and the parent or guardian with respect to the question or dispute.

(c) “Presumptive remainder beneficiary” means:

- 80th Session (2019) – 59 – (b) Designated by a person who, under the terms of the trust instrument, has the right to designate the laws that govern the validity and construction of the trust, at the time the designation is made;

or (c) The trust instrument does not provide for the law that governs the validity and construction of the trust, a person designated under the terms of the trust instrument to designate the law that governs the validity and construction of the trust, if any, has not made such a designation and the settlor or the trustee of the trust wastime athe residenttrust ofbecame thisirrevocable.e State at the time the trust was created or at the time[ A trust instrument or designation cannot extend the duration of the trust becamebeyond irrevocable.the rule against perpetuities otherwise applicable to the trust at the time of its creation.] 2.

- *AB286_R2* – 57 – [ A trust instrument or designation cannot extend the duration of the trust beyond the rule against perpetuities otherwise applicable to the trust at the time of its creation.] 2.

2.provision requiring arbitration shall be presumed to require bindingrust arbitration under NRS 38.206 to 38.248, inclusive.

Unless otherwise specified in the will or trust, a will or trust provision requiring arbitration shall be presumed to require binding arbitration under NRS 38.206 to 38.248, inclusive.

The guardian ad litem is entitled to reasonable - 80th Session (2019) – 60 – compensation for services with such compensation to be paid from the principal of the estate or trust whose beneficiaries are represented.

4.without limitation:ation in a provision in a will or trust may include, (a) The number, method of selection and minimum qualifications of arbitrators;

Such(b) The selection and establishment of arbitration inprocedures, aincluding, provisionwithout inlimitation, athe willincorporation orof trustthe mayarbitration include,rules withoutfor limitation:wills and trusts adopted by the American Arbitration Association;

(a) The number, method of selection and minimum qualifications of arbitrators;

- *AB286_R2* – 58 – (b) The selection and establishment of arbitration procedures, including, without limitation, the incorporation of the arbitration rules for wills and trusts adopted by the American Arbitration Association;

(k) The consequences to a party who fails to act in accordance withwit(l) suchOther provisionsmatters orwhich contestsare suchnot provisions;inconsistent with NRS 38.206 to 38.248, inclusive.

and (l) Other matters which are not inconsistent with NRS 38.206 to 38.248, inclusive.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 166.020 and section 41 of this act have the meanings ascribed to them in those sections.

or - 80th Session (2019) – 61 – 2.

Sec.Secs.

43.43 and 44.

44.

(Deleted by amendment.) Sec.

Except as otherwise provided in subsection 3, an agreement which includes a provision which requires a person to submit to arbitration any dispute arising between the parties to the agreement must include specific authorization for the provision - *AB286_R2* – 59 – which indicates that the person has affirmatively agreed to the provision.

If an agreement includes a provision which requires a person to submit to arbitration any dispute arising between the parties to the agreement and the agreement fails to include the specific authorization required pursuant to subsection 1, the provision is void and unenforceable.

a4. will or trust instrument that requires the arbitration of disputesn which is enforceable pursuant to NRS 164.930.

The provisions of this section do not apply to a provision in a will or trust instrument that requires the arbitration of disputes which is enforceable pursuant to NRS 164.930.

TEXT~~~~~ OF19 REPEALED- SECTIONS80th 163.5539Session “Excluded(2019) fiduciary” defined.

“Excluded fiduciary” means any fiduciary excluded from exercising certain the settlor, custodial account owner, investment trust adviser, trust protector, trust committee or other person designated in the instrument.

165.160 Trust instrument.

1.

Except as otherwise provided by a specific statute, federal law or common law, the terms of a trust instrument may expand, restrict, eliminate or otherwise vary the rights and interests of beneficiaries in any manner that is not illegal or against public policy, including, without limitation, specifying:

(a) The right to be informed of the beneficiary’s interest for a period of time;

(b) The grounds for removing a fiduciary;

- *AB286_R2* – 60 – (c) The circumstances, if any, in which the fiduciary must diversify investments;

and indemnification and liability to persons whose interests arise from the trust instrument.

2.

Nothing in this section shall be construed to:

(a) Authorize the exculpation or indemnification of a fiduciary for the fiduciary’s own willful misconduct or gross negligence;

or (b) Preclude a court of competent jurisdiction from removing a negligence.ecause of the fiduciary’s willful misconduct or gross 3.

The rule that statutes in derogation of the common law are to be strictly construed has no application to this section.

This section must be liberally construed to give maximum effect to the principle of freedom of disposition and to the enforceability of trust instruments.

H - *AB286_R2*