Common questions about Nevada Trusts
Q: Can I challenge a Trust?
A: Yes, there are numerous grounds to challenge a trust, including, but not limited to: fraud; lack of capacity; undue influence by another; existence of a more recent document; and, an improperly witnessed or signed trust agreement.
Q: What can I do if the terms of the Trust are ambiguous?
A: The beneficiaries or trustee may file a petition for the Court to provide instructions regarding a particular portion of the Trust. Under certain circumstances, it may be appropriate to request the court reform (revise) the trust document.
Q: Can the actions of a trustee be challenged?
A: Yes, when a trustee fails to act appropriately, the fiduciary may be held personally liable for breach of their fiduciary duty. There are several basis to request the court to overturn the decisions of the trustee and possibly seek his or her removal. These include a failure to provide an account; self-dealing; violations of court orders; and, excessive compensation.
Q: Am I entitled to a copy of the trust if I am a beneficiary?
A: Any person who is entitled to receive an Account by the Trustee must be provided a copy of the Trust Agreement if requested unless the document provides otherwise. An Account must be provided to each current beneficiary and each remainder beneficiary unless the Trust is revocable and the person who created the Trust is still alive.
Q: Can I make a demand for the trustee to provide an account?
A: Unless the Trust provides otherwise, the Trustee is required to provide an account within 90 days after the end of the period of the account. A demand can be made for an Account but it must comply with certain requirements to be enforceable. Further, there are certain times the Trustee is not required to provide an account.
Q: What happens if the person nominated as the trustee is unwilling to serve or unwilling to continue to serve?
A: The Trust document normally provides for the nomination of a successor trustee or alternate successor trustee. The Trust may also have a provision addressing if no alternate is nominated. In the event this language is not present, a petition can be filed with the District Court and a request for the appointment of a successor trustee can be made.
What is a trust instrument?
“Trust instrument” means a will, trust agreement, declaration, or other instrument that creates or defines the duties and powers of a trustee and shall include a court order or any instrument that modifies a trust instrument or, in effect, alters the duties and powers of a trustee or other terms of a trust instrument.
What are the requirements of a trust?
A trust is created only if: (1) the settlor properly manifests an intention to create a trust; and (2) there is trust property. In addition, the trust instrument must designate a beneficiary or class of beneficiaries that is ascertainable with reasonable certainty or that is sufficiently described so that it can be determined whether a person meets the description or is within the class.
Can I include language in my trust regarding the care of my pets?
Yes. In fact you can set up a separate trust known as a “pet trust”. In Nevada, a trust created for the care of one or more animals that are alive at the time of the settlor’s death is valid. Such a trust terminates upon the death of all animals covered by the terms of the trust. A settlor’s expression of intent must be liberally construed in favor of the creation of such a trust.
Should the powers of my trustee be limited?
You have no way of knowing specifically what type of situation you successor trustee may encounter upon your incapacity or death. Therefore, you should generally provide for the trustee to have powers that are as broad as possible.