By Alan D. Freer and Jeffrey P. Luszeck, Solomon Dwiggins Freer and Steadman, Ltd.
SB407, which was proposed by the Probate and Trust Law Section, clarifies laws relating to trusts and estates, adopts new laws to remain current as one of the top three leading jurisdictions in trusts and estates, and streamlines the probate and trust administration process, while including safeguards to prevent abuse. A brief rundown of the notable provisions of the bill include:
Sections 1 and 14 amend NRS 136.010 and 164.010 to clarify situs, jurisdiction, and venue determinations for trust and estate proceedings.
Sections 4, 5, and 7 amend various statutes to clarify the rights of an interested person in estate proceedings.
Sections 9 and 16 adopt new sections to NRS Chapters 163 and 164 regarding trustee capacity and certification that permits the settlor to decide how his/her “incapacity” will be established in the trust document. They also permit incapacity to be certified by one licensed physician unless a higher standard is required under the trust. They also amend NRS 164.410 to permit the trustee’s incapacity to be certified by the successor trustee and exonerate persons relying on such certification from liability.
Sections 13 and 18 adopt new sections of NRS Chapters 163 and 164 and amend NRS 239.010 to provide a statutory right to keep confidential certain information relating to a trust that otherwise must be disclosed in proceedings relating to trusts, including routine, unopposed petitions for instructions, reformation, etc.
Section 15 amends NRS 164.021 to clarify the information to be provided to a beneficiary, heir, or interested person when a trustee provides a notice of irrevocability. Under the amendment, a trustee is only required to provide the dispositive provisions of the trust instrument pertaining to the beneficiary or notice that the heir or interested person is not a beneficiary. However, the trustee may further comply with this subsection by providing a complete copy of the trust instrument to such person(s). Additional changes to this section include clarification regarding when the 120–day statute of limitations applies, that persons receiving notice may consent in writing to a period of less than 120 days, and that a trustee is absolved of liability for providing information under this section after making a good faith determination regarding the status of the person to be noticed.
Effective Date: July 1, 2023
About the Legislative Updates
This issue of the Communiqué (Sep. 2023) features select updates related to recent legislation passed during the 82nd Session of the Nevada Legislature (2023). Authors were instructed to limit their submissions due to space constraints of the printed publication.
This article was originally published in the Communiqué, the official publication of the Clark County Bar Association, (Sep. 2023). See https://clarkcountybar.org/about/member-benefits/communique-2023/communique-september-2023/
© 2023 Clark County Bar Association (CCBA). All rights reserved. No reproduction of any portion of this issue is allowed without written permission from the publisher. Editorial policy available upon request.
