Nevada Revised Statutes
Chapter 164 - Administration of Trusts
NRS 164.915 - Transfer of amount from income to principal to make certain principal disbursements.

1. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.
2. Principal disbursements to which subsection 1 applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:
(a) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;
(b) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;
(c) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements and broker’s commissions;
(d) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and
(e) Disbursements described in paragraph (g) of subsection 1 of NRS 164.905.
3. If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection 1.
(Added to NRS by 2003, 1981)

Structure Nevada Revised Statutes