Nevada § 163.557 - Circumstances under which trustee is authorized to reimburse settlor for tax on trust income or principal

§ 163.557. Circumstances under which trustee is authorized to reimburse settlor for tax on trust income or principal

1. A governing trust instrument may authorize the trustee, in the sole discretion

of the trustee or at the direction or with the consent of a directing trust adviser,

to reimburse a settlor for all or a portion of tax on trust income or principal that

is payable by the settlor under the law imposing such tax. In the sole discretion of the trustee, the trustee may pay such amount to the settlor

directly or to an appropriate taxing authority on behalf of the settlor. 2. A trustee or directing trust adviser is not liable to any person in exercising

such discretion to reimburse or not reimburse a settlor for tax payable by the settlor

on trust income or principal pursuant to subsection 1. 3. The power of a trustee to make a payment to or for the benefit of a settlor in

accordance with subsection 1 or the decision of a trustee to exercise such power in

favor of the settlor must not cause the settlor to be treated as a beneficiary for

purposes of the laws of this State. As used in this subsection, “beneficiary” has the meaning ascribed to it in NRS 163.4147 .