Nevada Revised Statutes 163.004 – Creation: Terms; revocability; rules of construction
1. Except as otherwise provided by law, the terms of a trust instrument may expand, restrict, eliminate or otherwise vary the rights and interests of beneficiaries in any manner that is not illegal or against public policy, including, without limitation:
Terms Used In Nevada Revised Statutes 163.004
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Fiduciary: A trustee, executor, or administrator.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
(a) The right to be informed of the beneficiary‘s interest for a period of time;
(b) The grounds for the removal of a fiduciary;
(c) The circumstances, if any, in which the fiduciary must diversify investments;
(d) A fiduciary’s powers, duties, standards of care, rights of indemnification and liability to persons whose interests arise from the trust instrument; and
(e) The provisions of general applicability to trusts and trust administration.
2. A trust is irrevocable except to the extent that a right to revoke the trust is expressly reserved by the settlor under the terms of the trust instrument. Any authority, power or right granted to any person other than the settlor under the terms of the trust instrument or by law, including, without limitation, the power or right to amend the trust, does not render or make a trust revocable.
3. Nothing in this section shall be construed to:
(a) Authorize the exculpation or indemnification of a fiduciary for the fiduciary’s own willful misconduct or gross negligence; or
(b) Preclude a court of competent jurisdiction from removing a fiduciary because of the fiduciary’s willful misconduct or gross negligence.
4. The rule that statutes in derogation of the common law are to be strictly construed has no application to this section. This section must be liberally construed to give maximum effect to the principle of freedom of disposition and to the enforceability of trust instruments.