NRS 164.925
Adjustments between principal and income to offset shifting economic interests or tax benefits between income beneficiaries and remainder beneficiaries

  • reimbursement of principal if estate taxes are increased and income taxes are decreased under certain circumstances.

1.

A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:

(a)

Elections and decisions, other than those described in subsection 2, that the fiduciary makes from time to time regarding tax matters;

(b)

An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or the trust; or

(c)

The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, the trust or a beneficiary.

2.

If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust or beneficiary are decreased, each estate, trust or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
ARBITRATION OF DISPUTES

Source: Section 164.925 — Adjustments between principal and income to offset shifting economic interests or tax benefits between income beneficiaries and remainder beneficiaries; reimbursement of principal if estate taxes are increased and income taxes are decreased under certain circumstances., https://www.­leg.­state.­nv.­us/NRS/NRS-164.­html#NRS164Sec925.

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

§ 164.925’s source at nv​.us