163.130 - Exoneration or reimbursement of trustee for tort. - Nevada Statutes

163.130  Exoneration or reimbursement of trustee for tort.

      1.  A trustee who has incurred personal liability for a tort committed in the administration of the trust is entitled to exoneration therefor from the trust property if the trustee has not discharged the claim, or to be reimbursed therefor out of trust funds if the trustee has paid the claim, if:

      (a) The tort was a common incident of the kind of business activity in which the trustee was properly engaged for the trust; or

      (b) Although the tort was not a common incident of such activity, neither the trustee nor any officer or employee of the trustee was guilty of personal fault in incurring the liability.

      2.  If a trustee commits a tort which increases the value of the trust property, the trustee shall be entitled to exoneration or reimbursement with respect thereto to the extent of such increase in value, even though the trustee would not otherwise be entitled to exoneration or reimbursement.

      3.  Nothing in this section shall be construed to change the existing law with regard to the liability of trustees of charitable trusts for torts of themselves or their employees.

      [12:136:1941; 1931 NCL § 7718.41]