Termination of trust when value of trust property insufficient to justify cost of administration.

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1. After notice to the beneficiaries, the trustee of a trust that consists of trust property having a total value of less than $100,000 or that is uneconomical to administer may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. This subsection does not apply to an interested trustee.

2. The court may modify or terminate a trust, in accordance with NRS 163.185, or remove the trustee and appoint a different trustee if the court determines that the value of the trust property is insufficient to justify the cost of administration.

3. On termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

4. This section does not apply to a trust whose trust property includes an easement for conservation.

5. As used in this section:

(a) "Easement for conservation" has the meaning ascribed to it in NRS 111.410.

(b) "Interested trustee" means:

(1) An individual trustee to whom the net income or principal of the trust can currently be distributed or would be distributed if the trust were then to terminate and be distributed.

(2) Any trustee who may be removed and replaced by an interested distributee.

(3) An individual trustee whose legal obligation to support a beneficiary may be satisfied by distributions of income and principal of the trust.

(Added to NRS by 2015, 3541)


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