USA – NEVADA Law and Practice Contributed by: Brian Steadman, Alexander LeVeque, Jeffrey Luszeck and Craig Friedel, Solomon Dwiggins Freer & Steadman
ing estate planning documents or actions undertaken by a fiduciary; (d) accounting – requiring a complete accounting from a fiduciary for any and all actions under - taken; or (e) removal of a fiduciary – sometimes the actions of a fiduciary are so severe it warrants the removal of a fiduciary. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries The use of corporate fiduciaries is common in Nevada, with the number of such entities growing each year. While no statute or case law explicitly imposes a heightened standard of conduct on corporate fiduci - aries, Nevada trial courts often subject their exercise of discretion to greater scrutiny than that of individual fiduciaries. 6.2 Fiduciary Liabilities Under Nevada law (NRS 163.004), a trust instrument may limit a trustee’s liability, provided the limitation is neither unlawful nor contrary to public policy. To date, the Supreme Court of Nevada has not directly addressed whether the veil of a trust can be pierced. Notably, in Magliarditi v TransFirst Group, Inc., 135 Nev. 681, 450 P.3d (2019) (unpublished), the Court expressly declined to answer a certified question from the US District Court for the District of Nevada regard - ing whether the alter ego doctrine applies to trusts generally – and to spendthrift trusts in particular. 6.3 Fiduciary Regulation In 2003, the Nevada Legislature enacted the Uniform Prudent Investor Act (NRS 164.705, et seq). 6.4 Fiduciary Investment Unless a trust provides otherwise, Nevada applies the prudent investor rule as the standard for fiduciary investment of assets, codified in NRS 164.705, et seq. This standard requires trustees to invest and manage trust assets with the care, skill and caution that a pru - dent investor would use, considering the purposes, terms and distribution requirements of the trust. While Nevada’s prudent investor rule reflects many princi -
ples of the modern portfolio theory, Nevada’s appli - cation is more flexible as trustees may consider non- financial factors, such as tax implications, beneficiary circumstances or ethical considerations, and absolute adherence to statistical optimisation is not required. 7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship In general, to establish residency in Nevada one must be physically present in the state with the intent to indefinitely remain (NRS 10.115). “Indicia of intent” to indefinitely remain in Nevada include, among others, establishing the following there: (i) voter registration; (ii) school attendance; (iii) employment; (iv) a driver’s license; (v) primary residence; (vi) vehicle registra - tion; (vii) funds in Nevada financial institutions, etc. In addition, there are specialised residency requirements that must be met for certain purposes. For example, if being established for: (1) voter registration, one must live in NV for 30 days; (2) to initiate divorce proceed - ings, one must live in Nevada for six weeks; (2) to obtain in-state tuition at a Nevada university, on must live in NV for at least 12 months prior to matriculation. 7.2 Expeditious Citizenship There are no expedited means to obtain residency in Nevada. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms Special Planning Mechanisms for Adults with Disabilities Nevada recognises first-party, third-party, and pooled SNTs. More information about Nevada SNT require - ments is located in section F-500 of the Nevada Department of Welfare and Support Services (DWSS) Medical Assistance Manual. Special Planning Mechanisms for Minors Nevada has adopted the Uniform Act on Transfer to Minors (NRS Chapter 167), which allows for gifts to
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