NRS 163.4185
Classifications of distribution interests.


1.

A distribution interest may be classified as:

(a)

A mandatory interest if the trustee has no discretion to determine whether a distribution should be made, when a distribution should be made or the amount of the distribution.

(b)

A support interest if the trustee is required to make distributions to the beneficiary pursuant to an ascertainable standard.

(c)

A discretionary interest if the trustee has discretion to determine whether a distribution should be made, when a distribution should be made and the amount of the distribution.

2.

If a trust contains a combination of a mandatory interest, a support interest or a discretionary interest, the trust must be separated as:

(a)

A mandatory interest only to the extent of the mandatory language provided in the trust;

(b)

A support interest only to the extent of the support language provided in the trust; and

(c)

A discretionary interest for any remaining trust property.

3.

If a trust provides for a support interest that also includes mandatory language but the mandatory language is qualified by discretionary language, the support interest must be classified and separated as a discretionary interest.

4.

As used in this section, “ascertainable standard” means a standard relating to a person’s health, education, support or maintenance within the meaning of section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code, 26 U.S.C. § 2041(b)(1)(A) or 2514(c)(1), and any regulations of the United States Treasury promulgated thereunder.

Source: Section 163.4185 — Classifications of distribution interests., https://www.­leg.­state.­nv.­us/NRS/NRS-163.­html#NRS163Sec4185.

Last Updated

Jun. 24, 2021

§ 163.4185’s source at nv​.us