Trustee authorized to include certain capital gains in distributable net income in certain circumstances.

NRS

163.610

Trustee authorized to include certain capital gains in distributable net income in certain circumstances.

Unless otherwise provided by the trust instrument, a trustee may include capital gains from the sale or exchange of capital assets in distributable net income to the extent the gains are, in a reasonable and impartial exercise of discretion by the trustee, allocated to:

1. Income pursuant to the power of the trustee to adjust between principal and income pursuant to NRS 164.795 ;

2. Principal and treated consistently by the trustee in the books, records and tax returns of the trust as part of the distribution to a beneficiary; or

3. Principal but distributed to a beneficiary or utilized by the trustee in determining the amount that is distributed or required to be distributed to a beneficiary.

(Added to NRS by 2015, 3540 ; A 2017, 1694 )