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.