Nevada trustees must perform their fiduciary duties and properly administer a revocable trust that becomes irrevocable with the death of the settlor. Acts and omissions can breach fiduciary duties. Many Nevada residents and out of state parties seek expert advice from an experienced trust administration lawyer in Las Vegas.
Standard of Care
The Nevada law of trust administration requires a high level of care when managing trust assets. The standard is higher than the ordinary care that one would give to personal assets and personal legal or business affairs. The fiduciary duties include accounting, loyalty, impartiality, prudence, and compliance with the terms of the trust.
The Nevada trustees must perform the below-listed duties:
-Duty of Accounting
Once per year, the trustee must report all assets, their value, and all transactions to the court, co-trustees if any, and beneficiaries.
-Duty of Compliance
The trustee must faithfully follow the instructions in the trust document.
-Duty of Impartiality
If there are more than one beneficiary or trustee, then the trustee must treat each equally unless specifically instructed to favor a named party.
-Duty of Loyalty
The trustee cannot be disloyal such as self-dealing, creating conflicts of interest, or divided loyalty.
-Duty to Act Prudently
The trustee must take ownership of all trust assets. The trustee must evaluate the assets and determine whether to keep them as is or convert them to a higher form for greater value.
Breach of Fiduciary Duties
Failure to meet the standards of care in carrying out the fiduciary duties can result in legal liability. The basic elements of breach of fiduciary duty are the existence of the duty, conduct that falls below the standard of care and causes economic damage or other legal harms. The fiduciary duties prohibit certain conduct including the below-listed acts or omissions.
- Must not make unwise, unduly risky, or speculative investments.
- Must not self-deal or do transactions that favor related businesses or personal business interests.
- Pay taxes, resolve claims, and protect trust assets.
- Must not make unauthorized or untimely distributions, unsecured loans, nor commingle trust and personal funds with one’s self or any person.
Attorney Sean Tanko offers expert assistance with Nevada fiduciary duties. Consult with an experienced trust administration lawyer in Las Vegas; please call or visit online today.