Nevada § 164.805 - Distribution of net income to beneficiaries; rules for determining share of net income

§ 164.805. Distribution of net income to beneficiaries; rules for determining share of net income

1. Each beneficiary described in subsection 4 of NRS 164.800 is entitled to receive a portion of the net income equal to the beneficiary’s fractional

interest in undistributed principal assets, using values as of the date of distribution. If a fiduciary makes more than one distribution of assets to beneficiaries to whom

this section applies, each beneficiary, including one who does not receive part of

the distribution, is entitled, as of each date of distribution, to the net income

the fiduciary has received after the date of death or terminating event or earlier

date of distribution but has not distributed as of the current date of distribution. 2. In determining a beneficiary's share of net income, the following rules apply: (a) The beneficiary is entitled to receive a portion of the net income equal to the

beneficiary’s fractional interest in the undistributed principal assets immediately

before the date of distribution, including assets that later may be sold to meet principal

obligations. (b) The beneficiary’s fractional interest in the undistributed principal assets must

be calculated without regard to property specifically given to a beneficiary and property

required to pay pecuniary amounts not in trust. (c) The beneficiary’s fractional interest in the undistributed principal assets must

be calculated on the basis of the aggregate value of those assets as of the date of

distribution without reducing the value by any unpaid principal obligation. (d) The date of distribution for purposes of this section may be the date as of which

the fiduciary calculates the value of the assets if that date is reasonably near the

date on which assets are actually distributed. 3. If a fiduciary does not distribute all the collected but undistributed net income

to each person as of a date of distribution, the fiduciary shall maintain appropriate

records showing the interest of each beneficiary in that net income. 4. A trustee may apply the rules in this section, to the extent that the trustee considers

it appropriate, to net gain or loss realized after the date of death or terminating

event or earlier date of distribution from the disposition of a principal asset if

this section applies to the income from the asset.