Nevada § 164.798 - Administration of unitrust: Powers of trustee; manner of distributions

§ 164.798. Administration of unitrust: Powers of trustee; manner of distributions

1. A trustee of a unitrust may, in the trustee's discretion, determine: (a) The effective date of a conversion to a unitrust; (b) The provisions for prorating a unitrust distribution for a beneficiary whose right

to payments commences or ceases during a calendar year; (c) The frequency of unitrust distributions during a calendar year; (d) The effect of other payments from or contributions to the trust on the trust's

value; (e) How frequently to value nonliquid assets and whether to estimate the value of

nonliquid assets; (f) Whether to omit from the calculations of the trust property occupied or possessed

by a beneficiary; and (g) Any other matters necessary for the proper functioning of the unitrust. 2. Expenses which would be deducted from income if the trust were not a unitrust may

not be deducted from the unitrust distribution. Unless otherwise provided by the trust instrument, the unitrust distribution must

be paid from income. To the extent income is insufficient to pay a distribution, the distribution must

be paid from realized short-term capital gains. To the extent income and realized short-term capital gains are insufficient, the

distribution must be paid from realized long-term capital gains. To the extent none of these funds are sufficient, the distribution must be paid

from the principal of the trust.