Nevada Revised Statutes 163.5559 – Claims of creditors against settlor
1. Except as otherwise provided in subsection 2, a creditor of a settlor may not seek to satisfy a claim against the settlor from the assets of a trust because of the existence of:
Terms Used In Nevada Revised Statutes 163.5559
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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) A discretionary power granted to a person other than the settlor by the terms of the trust or by operation of law or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing such tax;
(b) A power allowing the settlor to reacquire the trust corpus by substituting other property of an equivalent value; or
(c) A power allowing the settlor to borrow trust corpus or income, directly or indirectly, without adequate interest or without adequate security.
2. The provisions of subsection 1 do not preclude a creditor from seeking to satisfy a claim against the settlor of a spendthrift trust from trust property transferred by the settlor to the extent the creditor can prove by clear and convincing evidence that the transfer was fraudulent as to that creditor pursuant to chapter 112 of NRS or violates a legal obligation owed to that creditor under a contract or a valid court order that is legally enforceable by that creditor.
3. For purposes of this section, a beneficiary of a trust shall be deemed to not be a settlor of a trust because of a lapse, waiver or release of the beneficiary’s right to withdraw part or all of the trust property if the value of the property which could have been withdrawn by exercising the right of withdrawal in any calendar year does not, at the time of the lapse, waiver or release, exceed the greater of the amount provided in 26 U.S.C. § 2041(b)(2), 26 U.S.C. § 2503(b) or 26 U.S.C. § 2514(e), as amended, or any successor provision.