Charitable, Pet, Purpose and Custodial Trusts in Nevada

Part of my Nevada Trusts Guide.

By Ronald W. Brilliant, Attorney at Law · Licensed in Idaho, Nevada & California · Last reviewed: September 2026 against Nevada Revised Statutes chapters 153, 162B and 163 through 166A (current through the 2025 legislative session)

In This GuideNevada TrustsTopic 7 of 10: Charitable & Special Trusts

Most trusts hold property for named people. Nevada law also allows trusts that serve charity, care for animals, carry out a stated purpose or benefit the public. A trust is created only if there is a beneficiary, but that requirement is satisfied if the trust instrument provides for a charitable trust, a trust for the care of animals, a public benefit trust or a noncharitable trust without an ascertainable beneficiary (NRS 163.006).

This page also covers custodial trusts under the Nevada Uniform Custodial Trust Act, which hold property for an individual beneficiary’s use and benefit (NRS 166A.010, 166A.040, 166A.180). These rules matter to people planning gifts, to trustees of these trusts and to beneficiaries and family members who want to know their rights. The general rules for forming any trust are on the creating a trust page.

Charitable Trusts

NRS 163.420 to 163.550 are known as the Charitable Trust Act of 1971 (NRS 163.420). The Legislature declared that Nevada’s policy is to maximize funds available for charitable purposes by minimizing federal income and excise taxes on trust assets otherwise available for those purposes (NRS 163.430).

The Act uses federal tax definitions. Section references are to the Internal Revenue Code of 1986 as in effect on January 1, 1999, including later amendments (NRS 163.440). The Act applies to covered trusts whether created before, on or after April 17, 1971 (NRS 163.510).

Key terms are defined by reference to the Internal Revenue Code. A “charitable trust” is an organization described in Section 4947(a)(1), a “private foundation trust” is a trust as defined in Section 509(a), and a “split interest trust” is a trust for individual and charitable beneficiaries as defined in and subject to Section 4947(a)(2) (NRS 163.460, 163.470, 163.480).

Prohibited Acts and Required Distributions

In administering a private foundation trust, split interest trust or charitable trust subject to the Internal Revenue Code, these acts are prohibited (NRS 163.520(1)):

Any act of “self-dealing” as defined in Section 4941(d) that would create liability for the tax under Section 4941(a) (NRS 163.520(1)(a)).
Retaining “excess business holdings” as defined in Section 4943(c) that would create liability for the tax under Section 4943(a) (NRS 163.520(1)(b)).
Making investments that would jeopardize carrying out the trust’s exempt purposes within the meaning of Section 4944, so as to create liability for the tax under Section 4944(a) (NRS 163.520(1)(c)).
Making “taxable expenditures” as defined in Section 4945(d) that would create liability for the tax under Section 4945(a) (NRS 163.520(1)(d)).

These prohibitions do not apply to split interest trusts, or amounts of them, that are not subject to the private foundation prohibitions because of Section 4947 (NRS 163.520(2)). A private foundation trust or charitable trust must distribute, for each taxable year, amounts at least sufficient to avoid the tax imposed by Section 4942(a) (NRS 163.530).

Court Amendment to Conform to the Act

A Nevada court with jurisdiction over a trust covered by the Act may amend the trust instrument to conform to the Act (NRS 163.540(1)). The trustee starts the process by filing a petition, and the clerk sets a hearing date (NRS 163.540(2)). The trustee must give notice of the hearing by:

Personal service on the living settlor or settlors and on all named beneficiaries, for the period and in the manner provided in NRS 155.010 (NRS 163.540(2)(a));
Publication on three dates before the hearing, with at least 10 days from the first to last date of publication if the newspaper is published more than once a week (NRS 163.540(2)(b)); and
Delivery of the notice and a copy of the petition to the Nevada Attorney General when the petition is filed (NRS 163.540(2)(c)).

At the hearing, the court may authorize the trustee to amend, revise, delete or add provisions to avoid the penalties and liabilities under Sections 4941(a), 4942(a), 4943(a), 4944(a) and 4945(a). If the settlor or settlors are living and competent to act, their written consent must first be obtained (NRS 163.540(3)). The petition may also ask the court to authorize changes so the trust conforms with the requirements for terminating private foundation status under Section 507, or to avoid the tax in Section 507(c) (NRS 163.550).

The Attorney General’s Role

A petition under NRS 153.031 about a trust’s affairs must state the name and address of each interested person, including the Attorney General if the petition relates to a charitable trust (NRS 153.031(2)). Notice of a petition under NRS 164.033 about disputed trust property must likewise go to the Attorney General if the petition relates to a charitable trust (NRS 164.033(4)(a)). In a lawsuit against a charitable trust based on a trustee’s contract or on an obligation from owning or controlling trust property, the plaintiff cannot get a judgment without proving it notified, within the time the statute sets, the Attorney General and any corporation that is a beneficiary or agency in performing the trust, and they may intervene (NRS 163.120(1), (2)). Court procedures are covered on the trust court petitions and disputes page.

Trusts for the Care of Animals

A trust created for the care of one or more animals that are alive at the time of the settlor’s death is valid (NRS 163.0075(1)). The trust ends when all animals covered by its terms have died, and the settlor’s expression of intent must be liberally construed in favor of creating the trust (NRS 163.0075(1)).

Trust property generally may not be used in a way inconsistent with its intended use (NRS 163.0075(2)). Unless the trust directs otherwise, if a court determines the trust’s value exceeds what is needed to care for the animal, the excess must go to the person who would have taken the trust property if the trust had ended on the date of distribution (NRS 163.0075(2)).

The trustee may enforce the trust’s intended use. If no trustee was designated, a person appointed by the court to act as trustee may enforce it (NRS 163.0075(3)). A person with a demonstrated interest in the animal’s welfare may petition the court to be appointed trustee or to remove the trustee, and the court must give preference for appointment to a person who shows that interest (NRS 163.0075(3)).

Noncharitable Purpose Trusts

Except as provided in NRS 163.0075 or another law, a trust may be created for a noncharitable purpose without a definite ascertainable beneficiary, or for a noncharitable but otherwise valid purpose (NRS 163.5505(1)). A “valid purpose” is any purpose that is not illegal or against public policy (NRS 163.5505(4)(c)). The purpose must be stated in the trust instrument with enough detail that a finder of fact can determine it (NRS 163.5505(1)).

The trust may be enforced by a trustee, trust adviser, trust protector or person appointed under the trust terms, or by the court if no such person is appointed (NRS 163.5505(2)). Trust advisers and trust protectors are explained on the trustee duties and powers page.

Trust property may be applied only to its intended use, except to the extent the court determines the property exceeds what that use requires (NRS 163.5505(3)). This includes appointing trust property to or for the benefit of an existing or new trust whose purposes are limited to one or more purposes of the original trust (NRS 163.5505(3)). Unless the trust terms say otherwise, property not required for the intended use must go to the settlor, if living, or otherwise to the settlor’s successors in interest (NRS 163.5505(3)).

Public Benefit Trusts

A public benefit trust is a valid trust without identifiable beneficiaries that is not a charitable trust, but which (NRS 163.551(2)):

Is established to further one or more specifically declared religious, scientific, literary, educational, community development, personal improvement or philanthropic purposes that are not illegal or against public policy (NRS 163.551(2)(a));
Provides that its principal or income, or both, will provide a benefit to the general public or to one or more classes or groups of persons, which may include a government or governmental agency, to be identified in the trustee’s discretion (NRS 163.551(2)(b));
Does not allow any benefit to the trustee or a cotrustee, except reasonable compensation and reimbursement of expenses incurred for the trust (NRS 163.551(2)(c)); and
Does not violate the rule against perpetuities in NRS 111.103 to 111.1039 (NRS 163.551(2)(d)).

A public benefit trust must be administered according to its terms (NRS 163.551(1)). Except as the trust instrument provides otherwise, these rules apply (NRS 163.551(1)):

Enforcement. A person appointed by the trust instrument may enforce it. If there is no such person, or that person is no longer willing or able to serve, the Attorney General, the district attorney of the county where the trust is domiciled or a person appointed by that county’s district court may enforce it (NRS 163.551(1)(a)).
Petitions. The Attorney General, that district attorney or any person with an interest, other than a general public interest, in the trust’s declared purpose may petition the district court to appoint or remove the person who enforces the trust (NRS 163.551(1)(b)).
Use of funds. Principal and income may be applied only to the trust’s intended use (NRS 163.551(1)(c)).
Termination. When the trust ends, remaining assets and undistributed income go as the trust terms provide or, without such terms, to the settlor’s estate (NRS 163.551(1)(d)).
Illegal purposes. If a specific purpose becomes illegal under the U.S. or Nevada Constitution, the trust continues as if that purpose were not included. If no purpose is lawful, the district court may reform the trust for similar lawful purposes; if reformation is not practical or will not accomplish the settlor’s objectives, the trust must terminate (NRS 163.551(1)(e)).
Filings. Unless ordered by the district court or required by the trust instrument, no filing, report, registration, periodic accounting, separate maintenance of funds, appointment or fee is required because of the trustee’s fiduciary relationship (NRS 163.551(1)(f)).
No trustee. If no trustee is designated or willing or able to act, the district court shall name one or more trustees (NRS 163.551(1)(g)).

Custodial Trusts

Chapter 166A is the Nevada Uniform Custodial Trust Act (NRS 166A.010). A person may create a custodial trust by a written transfer of property to another person, naming as beneficiary an individual who may be the transferor, with the transferee designated in substance as “custodial trustee” under the Act (NRS 166A.180(1)). An owner may also declare himself or herself custodial trustee for a beneficiary other than the owner, but a declaration for the owner’s sole benefit is not a custodial trust (NRS 166A.180(2)).

Title to the property is in the custodial trustee, and the beneficial interest is in the beneficiary (NRS 166A.180(3)). The Act provides sample forms and lists customary ways to create a custodial trust, such as registering securities or recording a real property deed in the name of the custodial trustee “as custodial trustee for” the beneficiary (NRS 166A.340). A person with the right to name the recipient of property payable on a future event, for example in a will, deed or insurance policy, may designate a custodial trustee to receive it (NRS 166A.190).

How a Custodial Trust Is Run

Following directions. If the beneficiary is not incapacitated, the custodial trustee must follow the beneficiary’s directions on managing, investing or keeping the property (NRS 166A.230(2)). Without effective contrary direction, the custodial trustee must use the care of a prudent person dealing with another’s property (NRS 166A.230(2)).
Payments. The custodial trustee must pay to or spend for the beneficiary as much of the property as the beneficiary, while not incapacitated, directs (NRS 166A.250(1)).
Incapacity. If the beneficiary is incapacitated, the custodial trustee must spend as much as the custodial trustee considers advisable for the beneficiary and for individuals the beneficiary supported when the incapacity began or who are legally entitled to the beneficiary’s support, without a court order (NRS 166A.250(2)).
Separate property and records. The custodial trustee must keep the property separate and clearly identified, and keep records of all transactions available to the beneficiary or the beneficiary’s legal representative at reasonable times (NRS 166A.230(4), (5)).

On petition of the beneficiary, the custodial trustee or another person interested in the property or the beneficiary’s welfare, the court shall determine whether the beneficiary is incapacitated (NRS 166A.260(4)).

A person holding property of, or owing a debt to, an incapacitated individual who has no conservator may transfer it to an adult member of the beneficiary’s family or a trust company as custodial trustee, unless an instrument under NRS 166A.190 directs otherwise. If the value exceeds $20,000, the transfer is not effective unless authorized by the court (NRS 166A.210(1)). Chapter 166A defines a “conservator” as a person appointed or qualified by a court to manage an individual’s estate, or a person legally authorized to perform substantially the same functions (NRS 166A.050).

Compensation, Bond and Statements

Unless the trust instrument, an agreement with the beneficiary or a court order provides otherwise, a custodial trustee is entitled to reimbursement of reasonable expenses, may elect no later than 6 months after the end of each calendar year to charge reasonable compensation for that year, and need not furnish a bond (NRS 166A.300).

On accepting the property, the custodial trustee must provide a written statement describing it. After that, the custodial trustee must provide a written statement of administration once each year, on reasonable request by the beneficiary or legal representative, on resignation or removal, and on termination (NRS 166A.310(1)). The beneficiary, the beneficiary’s legal representative, an adult family member or another interested person may petition the court for an accounting (NRS 166A.310(2)).

Ending a Custodial Trust

A transferor may not terminate a custodial trust (NRS 166A.180(4)). The beneficiary, if not incapacitated, or the conservator of an incapacitated beneficiary may terminate it by delivering a signed writing to the custodial trustee; otherwise it ends at the beneficiary’s death (NRS 166A.180(5)).

On termination, the custodial trustee transfers the remaining property to the beneficiary if not incapacitated or deceased, or to the conservator or other court-designated recipient for an incapacitated beneficiary (NRS 166A.330(1)(a), (b)). If the beneficiary has died, the property goes in this order (NRS 166A.330(1)(c)):

As last directed in a writing signed by the beneficiary while not incapacitated and received by the custodial trustee during the beneficiary’s life;
To the survivor of multiple beneficiaries, if survivorship is provided for under NRS 166A.220;
As designated in the instrument creating the custodial trust; or
To the deceased beneficiary’s estate.

Time Limits for Claims Against a Custodial Trustee

Claim	Must be commenced within	NRS
Accounting or breach of duty, after receiving a final account or statement fully disclosing the matter	2 years after receipt of the final account or statement	166A.320(1)(a)
Accounting or breach of duty, with no final account or statement fully disclosing the matter	3 years after the custodial trust terminates	166A.320(1)(b)
Fraud, misrepresentation or concealment related to final settlement, or concealing the trust’s existence	5 years after the custodial trust terminates	166A.320(2)

A claim is not barred by these limits if the claimant is a minor, until the earlier of 2 years after the claimant becomes an adult or dies; is an incapacitated adult, until the earliest of 2 years after a conservator is appointed, the incapacity is removed or the claimant dies; or was an adult, now deceased, who was not incapacitated, until 2 years after the claimant’s death (NRS 166A.320(3)).

How I Can Help

I help clients understand how Nevada law treats charitable trusts, trusts for animals, purpose trusts, public benefit trusts and custodial trusts, and which type may fit their goals. I also assist trustees and family members with court petitions, accountings and questions about how these trusts are run or ended. Request a consultation to discuss your situation.

This page provides general information about Nevada trust law, based on the Nevada Revised Statutes as of the 2025 legislative session, and is not legal advice. Other Nevada laws, court rules, tax law, and case law also affect trusts. Every situation is different; consult an attorney about yours. Reading this page does not create an attorney-client relationship.