NRS 164.875
Allocation of receipts from interest in minerals to income or to income and principal

  • allocation of receipts from interest in water to income or to income and principal
  • applicability.

1.

To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:

(a)

If received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income.

(b)

If received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.

(c)

If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus or delay rental is more than nominal, 90 percent must be allocated to principal and the balance to income.

(d)

If an amount is received from a working interest or any other interest not provided for in paragraph (a), (b) or (c), 90 percent of the net amount received must be allocated to principal and the balance to income.

2.

An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, 90 percent of the amount must be allocated to principal and the balance to income.

3.

NRS 164.780 to 164.925, inclusive, apply whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.

4.

If a trust owns an interest in minerals, water or other natural resources on October 1, 2003, the trustee may allocate receipts from the interest as provided in NRS 164.780 to 164.925, inclusive, or in the manner used by the trustee before October 1, 2003. If the trust acquires an interest in minerals, water or other natural resources after October 1, 2003, the trustee shall allocate receipts from the interest as provided in NRS 164.780 to 164.925, inclusive.

Source: Section 164.875 — Allocation of receipts from interest in minerals to income or to income and principal; allocation of receipts from interest in water to income or to income and principal; applicability., https://www.­leg.­state.­nv.­us/NRS/NRS-164.­html#NRS164Sec875.

164.780
Short title. 164.785
Definitions. 164.790
Allocation of receipt or disbursement to principal when terms of trust and provisions of NRS do not provide rule. 164.795
Adjustment between principal and income 164.796
Circumstances under which trustee authorized to convert trust into unitrust 164.797
Administration of unitrust: Duties of trustee 164.798
Administration of unitrust: Powers of trustee 164.799
Trustee or beneficiary authorized to petition court to take certain actions concerning unitrust. 164.800
Applicable rules after death of decedent or end of income interest in trust. 164.805
Distribution of net income to beneficiaries 164.810
Date on which income interest begins 164.815
Allocation of certain income receipts and disbursements 164.820
Payment of undistributed income upon end of mandatory income interest 164.825
Allocation of money received from entity to income 164.830
Allocation of amount received as distribution of income to income 164.835
Accounting separately for business or other activity. 164.840
Allocation of assets, money, property and other receipts to principal. 164.845
Allocation of receipts from rental property to income 164.850
Allocation of interest on obligation to pay money to trustee to income 164.855
Allocation of proceeds of life insurance policy and certain contracts to principal 164.860
Allocation of entire amount to principal if allocation between principal and income under certain circumstances is insubstantial. 164.865
Allocation of certain payments received because of services rendered or property transferred to payor in exchange for future payments to income or principal, or both 164.870
Allocation of receipts from liquidating assets to income and principal. 164.875
Allocation of receipts from interest in minerals to income or to income and principal 164.880
Allocation of net receipts from sale of timber and related products to income or principal, or both 164.885
Request of spouse if marital deduction is allowed and amounts transferred from principal to income and distributed are insufficient to obtain marital deduction 164.890
Allocation of receipts from and disbursements made in connection with transactions in derivatives to principal 164.895
Allocation from proceeds of collateral financial assets to income and principal 164.900
Disbursements required to be made from income 164.905
Disbursements required to be made from principal. 164.910
Transfer of net cash receipts from principal asset subject to depreciation to principal. 164.915
Transfer of amount from income to principal to make certain principal disbursements. 164.920
Payment of taxes required to be paid by trustee. 164.925
Adjustments between principal and income to offset shifting economic interests or tax benefits between income beneficiaries and remainder beneficiaries
Last Updated

Feb. 5, 2021

§ 164.875’s source at nv​.us