Notice of Irrevocability in Nevada: What Trustees Must Provide and What Beneficiaries Should Request
If you are a beneficiary of a trust, or the heir of a deceased person who created a trust, you have certain rights to information when that trust becomes irrevocable. If no one has explained what this means for you, or if you never received a notice or copy of the trust after a loved one passed away, you may have rights to certain information regarding the trust.
Many times, beneficiaries find out about an irrevocable trust many months after a person has passed away, and by then, they feel like some decisions have already been made without their knowledge or input.
Fortunately, Nevada law addresses a trustee’s duty and a beneficiary’s right to trust information, and those duties come with timeframes and consequences if the timeframes are ignored.
The Las Vegas trust attorneys at Lee Kiefer & Park have spent years working with beneficiaries in a variety of trust administration situations across Nevada. We know the filing requirements, the notice rules, and where trustees most often fall short. If something was missed, we know how to address it and what can still be done. Call us now at 702-333-1711.
Notice of Irrevocability.
Under Nevada Revised Statutes (“NRS”) §164.021 and related provisions, when a trust becomes irrevocable (usually upon the death of the creator of the trust), a trustee may notify a beneficiary of the trust, any heir of the creator of the trust, or any other interested person. While such a notice is not required, it is most common for a trustee to provide this type of notice.
What the Notice Must Include
When a trustee sends notice under NRS §164.021, certain information must be included. Such information includes the name and contact information of the trustee, a statement regarding the timeframe in which you must bring an action against the trust, and the provisions of the trust that pertain to you as a beneficiary of the trust (or notice that you are not a beneficiary of the trust). If you got a vague letter or nothing at all, the trustee did not issue notice in compliance with the statute.
If you never received such a notice from the trustee, but you are a beneficiary of the trust, absent any provisions of the trust restricting your rights to information, you have the right to request a copy of the trust instrument.
Now That the Trust Is Irrevocable, Here Is What You Can Do
Some beneficiaries hear the word “irrevocable” and assume they are barred from knowing anything about the trust. That is not necessarily true. You may still have rights.
You Can Demand Financial Information
Absent any provisions of the trust restricting your rights to information, you may have the right to request an accounting from the trustee. This means you can ask for a detailed breakdown of what money came into the trust, what went out, and why. And in most cases, the trustee must provide this.
You Can Challenge Trustee Decisions
If the trustee made decisions that harmed your interest or went against the terms of the trust, you may be able to challenge those decisions in court.
Nevada law holds trustees to a fiduciary duty. They must act in the best interests of the beneficiaries, not their own. A trustee who used trust money for personal gain, made risky investments without good reason, or ignored the trust’s instructions can be held accountable.
Here is what you should do right now to protect your position:
- Request a full copy of the trust document and any amendments in writing;
- Ask the trustee for a complete accounting of all trust assets and transactions;
- Document every communication you have had with the trustee, including dates; and
- Keep all of this organized. If you do end up in court, this record matters.
You Can Petition the Court
If the trustee is not cooperating and you believe your rights are being violated, you can petition the court to step in. A judge can order the trustee to provide information, replace a trustee who is not doing their job, or even adjust how the trust is being managed. This is a real option, not just a last resort.
If You’re a Trustee, Here Is How to Clean This Up Before It Becomes a Bigger Problem
If someone told you that you may have skipped giving proper notice to beneficiaries, take this seriously. Missing this step does not automatically mean you are in legal trouble, but it does mean you should take steps to protect yourself.
The worst thing you can do is nothing. Probate courts in Nevada look at how a trustee responds when a mistake comes to light. If you fix it fast and act in good faith, that works in your favor. If you wait and let the beneficiaries come to you with a complaint, that does not work in your favor.
What to Do Right Now
Review the trust document to determine who should have been notified. Then prepare and send the notice to every person who qualifies for notice under the statute. Make sure you include everything the law requires: a copy of the trust terms relevant to each beneficiary you notify, the name of the Settlor, your contact information as trustee, and the beneficiary’s rights to bring an action against the trust.
Sending the notice by certified mail or another trackable delivery option allows you to track delivery and receipt of the notice. Keep copies of everything you send.
But first, talk to a trust administration attorney. Even if you think you have it under control, a lawyer can spot issues you might not see on your own. The cost of a short consultation is minimal compared to what a lawsuit could cost you down the road.
Call Our Las Vegas Trust Lawyers Today
Whether you are a beneficiary trying to figure out if your rights were respected, or a trustee trying to make sure you are not exposed to a legal fight, this is not something to put off. The longer you wait, the fewer options you have.
The attorneys at Lee Kiefer & Park handle trust disputes and beneficiary rights cases across Nevada. They can review your specific situation and advise your best course of action.
Call us at 702-333-1711 to schedule a consultation and discuss protecting your financial future. You can also fill out our confidential contact form.
Attorney Kennedy Lee practices in all aspects of trust and estate law. He views all legal issues from multiple angles (e.g. from litigation to administration point of view) to provide a higher quality of service to our client.
