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. - Nevada Statutes

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)