Nevada Trustee Duties and Powers

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 3 of 10: Trustee Duties & Powers

Under Nevada’s Uniform Trusts Act, a trustee is the person holding property in trust. The term includes a corporate trustee as well as an individual, and it includes a successor or substitute trustee (NRS 163.020(4)). This page explains where a Nevada trustee’s powers come from, the main duties and limits the statutes place on trustees, and how directed trusts, trust advisers and trust protectors fit in.

The trust document matters a great deal. Except as otherwise provided by law, the terms of a trust instrument may expand, restrict, eliminate or otherwise vary the rights and interests of beneficiaries in any way that is not illegal or against public policy, including a fiduciary’s powers, duties, standards of care and liability (NRS 163.004(1)). But nothing in that rule authorizes excusing or indemnifying a fiduciary for the fiduciary’s own willful misconduct or gross negligence (NRS 163.004(3)).

Where a Trustee’s Powers Come From

A trustee has the powers provided in the trust instrument, the powers expressed by law, and powers granted by the court on petition, as necessary or appropriate to accomplish a purpose of the trust (NRS 163.023). The court may not grant a power that the trust instrument expressly prohibits (NRS 163.023).

Unless the trust instrument or a court order provides otherwise, a trustee’s powers are attached to the office and are not personal (NRS 163.100).

Powers Built Into Nevada Trusts by Statute

Nevada has a list of fiduciary powers in NRS 163.265 to 163.410. Except as otherwise expressly provided by the settlor (the person who creates the trust) in the trust instrument, all of these powers are incorporated into the trust instrument as if written out word for word (NRS 163.260(1)). They are in addition to, and do not limit, the fiduciary’s other common-law or statutory powers (NRS 163.260(1)). Some examples:

Power	NRS
Keep property received, for as long as the fiduciary deems advisable	163.265
Sell, exchange or otherwise dispose of property, with or without court order, at public or private sale	163.270
Invest and reinvest in stocks, bonds, real or personal property and other listed investments	163.275
Improve, manage, lease, subdivide and otherwise deal with real property	163.300
Pay taxes, assessments, the fiduciary’s compensation and other expenses of the trust	163.305
Borrow money and encumber trust property to pay debts, taxes or other charges	163.320
Carry insurance the fiduciary deems advisable	163.365
Sue, defend, compromise, arbitrate or abandon claims	163.375
Hire and pay agents, accountants, attorneys, brokers, appraisers and others	163.380
Distribute capital assets in cash, in kind, or partly each	163.395
Make payments to or for a minor or incapacitated person in the ways listed	163.400

There is a tax limit on these incorporated powers. A fiduciary may not use them in a way that, in the aggregate, deprives the trust of an otherwise available tax exemption, deduction or credit, including the marital deduction (NRS 163.260(2)).

Trustees also have statutory powers to combine or divide trusts, name an irrevocable trust, and choose how property is distributed, subject to conditions (NRS 163.025, 163.026, 163.027). Those powers are covered on the Modifying and Ending Trusts page.

Limits on Self-Dealing and Conflicts

The statutes restrict certain transactions between the trust and the trustee or people connected to the trustee:

Buying from or selling to the trustee. A trustee may not directly or indirectly buy or sell trust property from or to itself, an affiliate, the trustee’s or an affiliate’s directors, officers or employees, or a relative, employer, partner or other business associate of the trustee, except with prior court approval (NRS 163.050(1)). Such a transaction is allowed if the trust instrument authorizes it or all beneficiaries consent (NRS 163.050(2)).
Loans by a corporate trustee. Except as provided in NRS 163.040, a corporate trustee may not lend trust funds to itself, an affiliate, or a director, officer or employee of itself or an affiliate (NRS 163.030(1)).
Loans by other trustees. A noncorporate trustee, including a limited-liability company, may not lend trust funds to itself or to a relative, employer, employee, partner, member or other business associate (NRS 163.030(2)). The exceptions are a loan approved by a court, or a loan provided for in the trust instrument that is either consented to by all beneficiaries or made in accordance with a notice of proposed action under NRS 164.725 (NRS 163.030(2)).
Sales between trusts. Unless the trust instrument authorizes it or an exception applies, a trustee may not sell property as trustee of one trust to itself as trustee of another trust without court approval (NRS 163.060(1)).
Corporate trustee’s own securities. Unless authorized by the trust instrument or court order, a corporate trustee may not buy its own stock, bonds or other securities, or those of an affiliate, for a trust (NRS 163.070).
Personal obligations. Except as specifically provided in the trust instrument, a person holding a power to appoint or distribute income or principal to others may not use the power to discharge his or her own legal obligations (NRS 163.145).

For purposes of these rules, a “relative” means a spouse, ancestor, descendant, brother or sister (NRS 163.020(2)). A settlor may relieve a trustee of many Uniform Trusts Act duties, but no act of the settlor relieves a trustee of the duties, restrictions and liabilities in NRS 163.030, 163.040 and 163.050 (NRS 163.160(1)).

Duties in Managing Trust Property

A trustee must invest and manage trust property solely in the interest of the beneficiaries (NRS 164.715). If a trust has two or more beneficiaries, the trustee must act impartially in investing and managing trust property, taking into account their differing interests (NRS 164.720(1)). These rules, and the prudent investor standard, are covered on the Investing Trust Property page.

A few other specific duties appear in the Uniform Trusts Act. A trustee who owns corporate stock may vote it by proxy, but is liable for any loss to the beneficiaries from failing to use reasonable care in deciding how to vote and in voting (NRS 163.080). A trustee may hold stock in a nominee’s name only if the trust records and accounts clearly show the trustee’s ownership and the nominee deposits a signed statement showing the trust ownership, and the trustee is personally liable for any loss caused by the nominee’s acts (NRS 163.090).

Trustees also have a duty to account to certain beneficiaries. That duty is explained on the Trustee Accountings page.

Cotrustees

Unless the trust instrument or a court order provides otherwise, a power held by three or more trustees may be exercised by a majority (NRS 163.110(1)). A power held by only two trustees may be exercised only by unanimous action, unless the trust instrument or a court order allows otherwise (NRS 163.110(3)).

When a majority exercises a power, a trustee who did not join in exercising it is not liable to the beneficiaries or others for the consequences. A dissenting trustee who joins at the direction of the majority is not liable for that act if the trustee expressed the dissent in writing to any cotrustee at or before the time of joining (NRS 163.110(1)). This does not excuse a cotrustee from liability for inactivity or for failing to try to prevent a breach of trust (NRS 163.110(2)). If the trustees cannot act in a permitted way, an interested person may petition the court for instructions (NRS 163.110(4)).

Distribution Decisions and Trustee Discretion

Nevada classifies a beneficiary’s right to distributions into three types (NRS 163.4185(1)):

Mandatory interest: the trustee has no discretion about whether, when or how much to distribute.
Support interest: the trustee must distribute once the trustee determines the distribution will satisfy a defined ascertainable standard in the instrument (a standard relating to health, education, support or maintenance, as defined by reference to the Internal Revenue Code), and the instrument does not condition that distribution on the trustee’s further discretion (NRS 163.4185(1)(b), (4)).
Discretionary interest: the trustee has discretion about whether, when and how much to distribute.

A beneficiary of a support interest has an enforceable right to distribution and may petition a court to review it. The court may review the trustee’s decision for unreasonableness, dishonesty, improper motivation or failure to act (NRS 163.4187).

Except as otherwise provided in the trust instrument, a beneficiary with a discretionary interest has no enforceable right to a distribution. A court may review the trustee’s exercise of discretion only if the trustee acts dishonestly, with bad faith or willful misconduct (NRS 163.419(1)). A trustee given “sole,” “absolute,” “uncontrolled,” “unrestricted” or “unfettered” discretion, or similar words, has no duty to act reasonably in exercising that discretion (NRS 163.419(2)).

Except as otherwise provided in the trust instrument, a trustee is not required to consider a beneficiary’s own assets or resources when deciding whether to make a distribution (NRS 163.4175).

Directed Trusts, Trust Advisers and Trust Protectors

Nevada’s directed trust statutes (NRS 163.553 to 163.557) use these key terms:

Trust protector: any person whose appointment is provided for in the instrument (NRS 163.5547).
Investment trust adviser and distribution trust adviser: fiduciaries given authority by the instrument to exercise the powers described in NRS 163.5557 (NRS 163.5537, 163.5543). An instrument may appoint them for investment decisions or discretionary distributions (NRS 163.5557(1)).
Directing trust adviser: a trust adviser, trust protector or other person named in the trust instrument who can give directives the fiduciary must follow; it does not include someone whose advice the fiduciary is not required to follow (NRS 163.5536).

Protection for a Directed Trustee

A fiduciary is a “directed fiduciary” with respect to actions it has no power to take under the governing instrument, actions mandated by the instrument where it has no discretion, and actions it is directed to take or not take by a directing trust adviser (NRS 163.5548). A directed fiduciary is not liable for losses resulting from complying with a directing trust adviser’s direction, or from not taking a proposed action that required someone else’s approval that was not given or that depended on a condition that was not met (NRS 163.5549(1)). It also has no liability for any duty to review or evaluate an investment, to the extent the investment is made by a directing trust adviser (NRS 163.5549(2)). If the instrument provides, a directed fiduciary may continue to follow the directions after the settlor’s incapacity or death (NRS 163.555).

Powers of a Trust Protector

A trust protector may exercise the powers the instrument gives it, subject to the instrument’s terms. Those powers are exercised in the protector’s sole discretion and bind all other persons (NRS 163.5553(1)). They may include, among others, the power to (NRS 163.5553(1)):

Modify or amend the instrument for a more favorable tax status or to respond to changes in federal or state law;
Increase or decrease any beneficiary’s interest;
Modify the terms of a power of appointment granted by the trust (but a modification or amendment may not give a beneficial interest to someone not specifically provided for in the trust instrument);
Remove and appoint a trustee, trust adviser or committee member;
Terminate the trust;
Direct or veto distributions;
Change the trust’s location or governing law;
Interpret the instrument at the trustee’s request; and
Review and approve the trustee’s reports or accounting.

Unless the trust instrument provides otherwise, a trust protector’s powers are fiduciary in nature, and the instrument may define, reduce or remove the fiduciary standard that applies (NRS 163.5553(3)). Investment trust advisers who have authority to direct, consent to or disapprove investment decisions are fiduciaries when exercising that authority, unless the instrument provides otherwise (NRS 163.5551). A person who accepts appointment as a trust protector or trust adviser of a trust subject to Nevada law submits to the jurisdiction of Nevada courts and may be made a party to an action arising from his or her decisions (NRS 163.5555).

An investment trust adviser’s powers may include directing the trustee on buying, selling, keeping or encumbering trust property, voting proxies, selecting investment advisers, and valuing non-publicly traded investments (NRS 163.5557(2)). Except as otherwise provided in the instrument, a distribution trust adviser directs the trustee on all discretionary distributions to a beneficiary (NRS 163.5557(3)).

Trustee Liability to Outsiders

Except as otherwise provided in NRS chapter 163 or in the contract, a trustee is not personally liable on a contract properly entered into as trustee in administering the trust, unless the trustee fails to reveal the representative capacity or identify the trust in the contract (NRS 163.120(3)). Adding “trustee” or “as trustee” after the trustee’s signature is prima facie evidence of an intent to exclude personal liability (NRS 163.120(3)).

Subject to the reimbursement rights in NRS 163.130, a trustee may be held personally liable for a tort committed by the trustee or the trustee’s agents or employees only if the trustee, agent or employee is personally at fault (NRS 163.140(4)). A trustee who incurs personal tort liability in administering the trust may be entitled to exoneration or reimbursement from trust property in the circumstances listed in NRS 163.130(1). Trust property is not subject to the trustee’s personal obligations, even if the trustee is insolvent or bankrupt (NRS 163.417(2)).

Relieving a Trustee of Duties

By the settlor: through the trust instrument (or the other methods listed in the statute), a settlor may relieve the trustee of duties, restrictions and liabilities under NRS 163.010 to 163.200, alter or deny powers those sections grant, or add duties or powers (NRS 163.160(1)). But no act of the settlor relieves the trustee of the duties, restrictions and liabilities in NRS 163.030, 163.040 and 163.050 (NRS 163.160(1)).
Limits on exculpation clauses: except as provided in NRS 163.160(1) and (3), a trustee may be relieved of liability for breach of trust by provisions of the trust instrument (NRS 163.160(2)). But a trust provision cannot relieve a trustee of liability for a breach of trust committed intentionally, with gross negligence, in bad faith, or with reckless indifference to a beneficiary’s interest, or for any profit the trustee derives from a breach (NRS 163.160(3)).
By a beneficiary: a beneficiary of full legal capacity, acting on full information, may by written instrument delivered to the trustee relieve the trustee, as to that beneficiary, of duties under NRS 163.010 to 163.200, except those in NRS 163.030, 163.040 and 163.050, and may release the trustee from liability for past violations (NRS 163.170).
By the court: for cause shown and on notice to the beneficiaries, a court may relieve a trustee of these duties and restrictions, or wholly or partly excuse a trustee who acted honestly and reasonably from liability for violating them (NRS 163.180).

When a Trustee Breaches the Trust

A settlor, cotrustee or beneficiary may ask the court to remove a trustee (NRS 163.115(1)). The court may remove a trustee who commits or threatens to commit a breach of trust, where lack of cooperation among cotrustees substantially impairs administration, or where removal best serves the settlor’s or beneficiaries’ interests because of the trustee’s unfitness, unwillingness or persistent failure to administer the trust effectively (NRS 163.115(2)).

If a trustee commits or threatens to commit a breach of trust, a beneficiary or cotrustee may bring a proceeding for any appropriate purpose listed in the statute, such as compelling the trustee to perform his or her duties, stopping the breach, compelling the trustee to redress the breach, removing the trustee, or reducing or denying the trustee’s compensation (NRS 163.115(3)). If a trustee violates NRS 163.010 to 163.200, the trustee may be removed and denied compensation in whole or in part (NRS 163.190). Removal, ex parte restraining orders and other court remedies are covered on the Court Petitions and Trust Disputes page.

Trustee Incapacity and Vacancies

A trustee is incapacitated for purposes of NRS 163.605 if determined to lack capacity, or if the trustee is missing or detained, including incarcerated (NRS 163.605(3)). Incapacity may be established by a method in the trust instrument, by a licensed physician who has personally examined the person (unless the instrument provides otherwise), or by a court (NRS 163.605(4)). A trustee determined to be incapacitated under this section is deemed to no longer have authority to serve, and the person with priority under the instrument to serve as or appoint the successor trustee immediately assumes that authority (NRS 163.605(1)).

If a trust has no serving trustee because of the death, incapacity or resignation of the last trustee, and the trust instrument has no provision that can effectively be used to appoint a successor, the current beneficiaries may by unanimous vote appoint a successor trustee without court approval (NRS 163.600(1)). The successor may not be a person described in NRS 138.020 or a “related or subordinate person” to the settlor or any beneficiary under the Internal Revenue Code (NRS 163.600(1)).

How I Can Help

I help Nevada trustees understand their powers and duties under the trust document and the Nevada Revised Statutes, including directed-trust arrangements and the role of trust protectors and advisers. I also work with beneficiaries who have questions about how a trust is being administered or whether a trustee is meeting its obligations. 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.