Nevada § 163.5559 - Claims of creditors against settlor

§ 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: (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have been withdrawn by exercising the right of withdrawal in any calendar year does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.