Trust administration in Nevada allows a trustee, designated by the trust, to manage and distribute trust assets in accordance with the trust’s provisions. Trust administration is a legal process subject to state law. The framework of a trust is pivotal to administering a trust. These actions are part of trust administration in Nevada.
Identify the Trustee and Complete a Trust Agreement Review
Your loved one, known as the settlor in Nevada statutes, generally oversees the trust they create to protect their assets until death. In some cases, a professional trustee or a trusted individual manages complex trust assets throughout the settlor’s life.
When a loved one dies, a successor trustee becomes responsible for administering a Nevada trust in accordance with the trust’s documents. Naming a successor trustee in a trust is possible. The court may appoint a trust administrator when no successor trustee is named. The option for trust beneficiaries to vote unanimously on a successor trustee may also exist.
A review of the trust by its trustee or trustees provides the instructions for management and distribution of the trust, based on the settlor’s wishes. A successor trustee will sign an Affidavit of Successor Trustee to assume their role as trustee. Filing a copy of the document with the appropriate governmental agencies will also occur when necessary.
Notify Creditors and Settle Valid Debts
Sending a notice to known creditors that (NRS 164.025) a settlor may owe and placing notice in a local newspaper allows known and unknown creditors to file a claim against the estate, when possible. The trustee will either accept or reject the claim based on the creditor documentation.
A creditor then has the right to take legal action against the estate to recover the debt. Failure to inform creditors may result in a trustee’s liability for these debts after asset distribution.
Provide Notice of Irrevocability of Trust
Notice by trustee to beneficiaries of a Nevada trust must occur according to the specific instructions in NRS 164.021. Beneficiaries have 120 days from the date of notice to contest a trust if they disagree with its provisions. Beneficiaries are also made aware that a revocable trust becomes irrevocable.
Place Assets in the Trust and Review Last Will and Testament
The successor trustee will gather assets designated to the trust. A review of the settlor’s will can disclose their wishes for any remaining assets. A powerful tool executors or trustees may use during trust administration is a pour-over will (NRS 146.070).
A pour-over will may allow remaining assets not included in a trust to transfer from the estate to the trust, minimizing or bypassing the need to probate estate assets. Other legal options may be available to mitigate the Nevada probate process.
Manage Assets and Report to Beneficiaries
Trustees have the significant task of managing trust assets in a manner that preserves them. Management may include investing, paying expenses incurred by trust assets, and other duties. Beneficiaries have the legal right to receive timely information concerning asset management based on a trust’s guidance or at least annually (NRS 165.1214).
Asset Distribution, Trustee Release, and Termination of Trust
Paying all taxes and final expenses before distributing assets is imperative. Detailed management in administering a trust can save time and reduce costs in the event of an audit. A trustee and its beneficiaries should always explore options to protect against loss or liability before releasing a trustee from their duties and terminating the trust.
Make trust administration in Nevada a more straightforward process. Seeking professional legal guidance can minimize stress, support a more streamlined outcome, and offer protections for all parties during trust administration.