[TRUST NAME]
Irrevocable Trust Agreement
(Nevada)
Table of Contents
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
[// GUIDANCE: This template is intentionally comprehensive. Delete any bracketed guidance before finalizing. Cross-check all placeholders, defined terms, internal references, and statutory citations prior to circulation.]
1. DOCUMENT HEADER
1.1 Parties.
This Irrevocable Trust Agreement (“Agreement”) is made and entered into as of [EFFECTIVE DATE] (“Effective Date”) by and among:
a. [SETTLOR NAME], an individual residing at [SETTLOR ADDRESS] (“Settlor”); and
b. [TRUSTEE NAME], a [INDIVIDUAL / CORPORATE] trustee having an address at [TRUSTEE ADDRESS] (“Trustee”).
The Trustee shall hold and administer the Trust Estate for the benefit of the Beneficiaries, all upon the terms set forth herein.
1.2 Recitals.
A. Settlor desires to create an irrevocable trust pursuant to Nevada Revised Statutes (“NRS”) Chapter 163 and all other applicable provisions of Nevada law (collectively, “Nevada Trust Law”).
B. Settlor intends the Trust to be irrevocable and not subject to amendment or revocation except as expressly provided herein.
C. Settlor desires to transfer the property described in Schedule A (the “Initial Trust Property”) to the Trustee, and the Trustee is willing to accept such property in trust.
1.3 Consideration.
The mutual covenants herein contained and the delivery of the Initial Trust Property constitute good and valuable consideration.
1.4 Name of Trust.
The trust created hereunder shall be known as “[TRUST NAME]” (the “Trust”).
2. DEFINITIONS
Unless otherwise stated, capitalized terms have the meanings assigned below and apply equally to singular and plural forms. Section references are to this Agreement.
“Accountant” means [ACCOUNTANT FIRM OR INDIVIDUAL].
“Administrative Power” has the meaning set forth in Section 3.5.
“Agreement” has the meaning in Section 1.
“Beneficiary” or “Beneficiaries” means each person or entity identified in Schedule B, and any successor Beneficiary determined pursuant to Section 3.3.
“Distribution Standard” means the standard in Section 3.4(c).
“Fiduciary Duty” means the Trustee’s duties under Nevada Trust Law, including NRS 163.010 et seq.
“Grantor Trust Rules” means Subpart E, Part I, Subchapter J, Chapter 1 of the Internal Revenue Code of 1986, as amended (“IRC”).
“Irrevocable” means that, except as expressly allowed under Section 3.8, neither Settlor nor any other person may revoke or amend this Trust.
“Investment Advisor” means [INVESTMENT ADVISOR NAME], if any, appointed pursuant to Section 3.6.
“Trust Assets” means the Initial Trust Property together with all income and accretions, substitutions, and additions.
“Trust Estate” has the same meaning as Trust Assets.
“Trust Protector” means the person appointed under Section 3.7.
3. OPERATIVE PROVISIONS
3.1 Creation of Trust; Transfer of Property.
Settlor hereby irrevocably transfers, assigns, and delivers the Initial Trust Property to the Trustee, to be held, managed, and distributed as a separate trust estate under the terms of this Agreement.
3.2 Irrevocability.
a. This Trust is irrevocable upon execution.
b. No Settlor shall have any right, power, or authority, either alone or in conjunction with any other person, to alter, amend, revoke, or terminate the Trust, except as expressly provided in Section 3.8 or as permitted by NRS 163.556 (decanting) or NRS 163.5561 (modification by court order).
3.3 Beneficiaries.
a. Primary Beneficiaries are listed in Schedule B.
b. Contingent Beneficiaries shall take upon the occurrence of the events specified in Schedule B.
c. Beneficiaries’ rights are subject to the Distribution Standard and may be further limited by the Spendthrift Clause (Section 3.9).
3.4 Distributions.
a. Income. Except as otherwise provided, the Trustee shall distribute net income at least annually in accordance with the Distribution Standard.
b. Principal. The Trustee may distribute principal in the Trustee’s sole discretion subject to the Distribution Standard.
c. Distribution Standard. Distributions may be made for a Beneficiary’s health, education, maintenance, or support (“HEMS”) or such broader/other standard selected: [INSERT STANDARD].
[// GUIDANCE: Insert a specific standard (e.g., “best interests,” “sole discretion,” etc.). The broader the standard, the more asset-protection risk.]
3.5 Trustee Powers.
The Trustee shall have all powers granted under Nevada Trust Law, including NRS 163.265–163.410, and may:
i. invest and reinvest Trust Assets;
ii. employ professionals and pay reasonable fees;
iii. make tax elections;
iv. divide or consolidate Trust Assets;
v. borrow or lend funds; and
vi. exercise all Administrative Powers incidental or necessary to the foregoing.
3.6 Investment Advisor (Optional).
Settlor appoints [INVESTMENT ADVISOR NAME] as Investment Advisor pursuant to NRS 163.5547, with authority to direct the Trustee regarding investment of Trust Assets. The Trustee shall not be liable for investment decisions made in reliance on the Investment Advisor’s directions, consistent with NRS 163.5553.
3.7 Trust Protector (Optional).
a. Appointment. [TRUST PROTECTOR NAME] is appointed as Trust Protector.
b. Powers. The Trust Protector may:
1. Remove and replace the Trustee or Investment Advisor;
2. Amend administrative provisions to achieve tax objectives;
3. Resolve ambiguities.
c. Fiduciary Capacity. Unless otherwise indicated, the Trust Protector acts in a non-fiduciary capacity.
3.8 Limited Power to Modify.
Notwithstanding Section 3.2, the Trustee (or Trust Protector) may, without court approval and consistent with NRS 163.556, decant or modify the Trust for administrative or tax purposes, provided such action:
a. does not grant Settlor any prohibited power or benefit; and
b. does not materially adversely affect any vested Beneficiary’s interest unless required to maintain tax qualification.
3.9 Spendthrift.
Each Beneficiary’s interest is subject to a spendthrift trust as permitted by NRS 163.417 et seq. No Beneficiary may anticipate, assign, or encumber any interest, nor shall such interest be subject to the claims of creditors, except as expressly provided by Nevada Trust Law.
3.10 Termination of Trust.
Unless terminated earlier under this Agreement or mandatory law, the Trust shall terminate on the earliest of:
a. the death of the last surviving Beneficiary;
b. exhaustion of the Trust Estate; or
c. [OUTSIDE TERMINATION DATE/CONDITION].
Upon termination, the Trustee shall distribute remaining assets to the persons then entitled under Schedule B or as otherwise directed by the Trust Protector.
4. REPRESENTATIONS & WARRANTIES
4.1 Settlor represents:
a. Settlor has legal capacity and owns the Initial Trust Property free of liens, except as disclosed in Schedule C.
b. Settlor has not previously assigned, pledged, or encumbered the Initial Trust Property (other than disclosed).
4.2 Trustee represents:
a. Trustee is qualified and willing to serve;
b. Trustee will administer the Trust in accordance with Fiduciary Duty and Nevada Trust Law;
c. Trustee is not currently subject to any conflict of interest not disclosed in Schedule D.
4.3 Survival. All representations and warranties survive execution and are continuing.
5. COVENANTS & RESTRICTIONS
5.1 Settlor Covenants. Settlor shall execute all documents necessary to vest title to the Initial Trust Property in the Trustee.
5.2 Trustee Covenants.
a. Compliance. Trustee shall at all times comply with Nevada Trust Law and the IRC.
b. Accounting. Trustee shall provide annual accountings to each Qualified Beneficiary as defined in NRS 163.003.
c. Notice. Trustee shall provide the statutory notice required by NRS 164.021 within 90 days after acceptance of the trusteeship.
5.3 Beneficiary Covenants. Each Beneficiary shall cooperate with Trustee requests for taxpayer identification numbers and other information reasonably required for Trust administration.
6. DEFAULT & REMEDIES
6.1 Events of Default. The following constitute a default:
a. Trustee’s willful misconduct or gross negligence;
b. Trustee’s material breach of Fiduciary Duty;
c. Trustee’s insolvency or resignation without qualified successor.
6.2 Notice & Cure.
a. Beneficiary must deliver written notice describing the default to Trustee;
b. Trustee shall have 30 days to cure;
c. If uncured, Beneficiary may petition the state probate court pursuant to Section 8.2 or request the Trust Protector to remove the Trustee.
6.3 Remedies.
a. Removal of the Trustee;
b. Surcharge against Trustee’s compensation;
c. Injunctive relief to prevent further breach;
d. Recovery of attorney fees and costs per Section 6.4.
6.4 Attorney Fees. A prevailing party in any proceeding to enforce this Trust shall recover reasonable attorney fees and costs from the non-prevailing party, payable from that party’s share of the Trust Assets where applicable.
7. RISK ALLOCATION
7.1 Indemnification of Trustee.
To the fullest extent permitted by Nevada Trust Law, the Trust Assets shall indemnify and hold the Trustee harmless from any claim, loss, or liability arising out of the administration of the Trust, except for losses resulting from Trustee’s willful misconduct or gross negligence.
7.2 Limitation of Liability.
The Trustee’s liability for any claim shall be limited to the value of the Trust Assets under the Trustee’s control at the time the claim accrues. Trustee shall not be personally liable.
7.3 Insurance.
The Trustee may procure fiduciary liability insurance, premiums payable from the Trust Estate.
7.4 Force Majeure.
The Trustee shall not be liable for delays or failure to perform caused by acts of God, war, terrorism, pandemic, supply-chain disruption, or other events beyond the Trustee’s reasonable control.
8. DISPUTE RESOLUTION
8.1 Governing Law.
This Agreement and the Trust shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to conflict-of-laws principles.
8.2 Forum Selection.
Exclusive jurisdiction and venue for all matters arising under this Agreement shall lie in the [COUNTY] County Probate Court of Nevada.
8.3 Optional Arbitration.
a. Election. The Trust Protector, with consent of all Qualified Beneficiaries, may elect binding arbitration pursuant to NRS 38.206 et seq.
b. Procedure. Unless otherwise agreed, the arbitration shall be administered by the American Arbitration Association under its Commercial Arbitration Rules.
c. Injunctive Relief. A party may seek temporary injunctive relief from a court of competent jurisdiction to maintain the status quo pending arbitration.
8.4 Jury Trial Waiver.
Because probate matters in Nevada are resolved without a jury, no jury trial right exists; to the extent any claim is determined to be triable to a jury, the parties knowingly waive such right.
9. GENERAL PROVISIONS
9.1 Amendments; Waivers. Except as expressly provided in Section 3.8, no amendment or waiver is effective unless in writing and executed by the Trustee and, where required, the Trust Protector and all Qualified Beneficiaries.
9.2 Assignment.
a. Trustee may not delegate fiduciary duties except as expressly permitted herein or by Nevada Trust Law.
b. Beneficiaries may not assign their interests except as permitted by Section 3.9.
9.3 Successors & Assigns. This Agreement binds and inures to the benefit of all successors, assigns, and lawful representatives.
9.4 Severability. Any invalid or unenforceable provision shall be reformed to the minimum extent necessary to render it valid and enforceable, preserving the parties’ intent.
9.5 Entire Agreement. This Agreement, including Schedules A–D, constitutes the entire understanding regarding the Trust and supersedes all prior agreements.
9.6 Counterparts; Electronic Signatures.
a. This Agreement may be executed in counterparts, each deemed an original and together constituting one instrument.
b. Signatures transmitted electronically or by facsimile are deemed original for all purposes under NRS 719.010 et seq. (Uniform Electronic Transactions Act).
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Settlor and the Trustee have executed this Agreement as of the Effective Date.
| _______ | ___ |
| [SETTLOR NAME] | Date: ___ |
| Settlor |
| _______ | ___ |
| [TRUSTEE NAME] | Date: ___ |
| Trustee |
[// GUIDANCE: If multiple Trustees or corporate trustees, duplicate or adapt signature blocks accordingly.]
NOTARIZATION (Nevada)
State of Nevada )
County of [COUNTY] )
On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [SETTLOR NAME] and [TRUSTEE NAME], proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to within this instrument, and acknowledged that they executed the same for the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public
My Commission Expires: _____
SCHEDULE A
Initial Trust Property
1. [DESCRIPTION OF ASSETS]
2. …
SCHEDULE B
Beneficiaries and Distribution Provisions
1. [PRIMARY BENEFICIARY NAME] – [PERCENTAGE OR TERMS]
2. [CONTINGENT BENEFICIARY NAME] – [TERMS]
SCHEDULE C
Liens & Encumbrances (if any)
SCHEDULE D
Trustee Conflict Disclosures (if any)
[// GUIDANCE: Attach additional schedules as needed for tax elections, life insurance policies, LLC membership interests, or other asset classes.]