Limitations on actions of creditors and courts: Trust property not subject to trustee’s personal obligations; beneficial interests may not be transferred under certain circumstances.

1. A creditor may not exercise, and a court may not order the exercise of: (a) A power of appointment or any other power concerning a trust that is held by a beneficiary; (b) Any power listed in NRS 163.5553 that is held by a trust protector as defined in NRS 163.5547 or any other person; (c) A trustee’s discretion to: (1) Distribute any discretionary interest; (2) Distribute any mandatory interest which is past due directly to a creditor; or (3) Take any other authorized action in a specific way; or (d) A power to distribute a beneficial interest of a trustee solely because the beneficiary is a trustee. 2. Trust property is not subject to the personal obligations of the trustee, even if the trustee is insolvent or bankrupt. 3. A settlor may provide in the terms of the trust instrument that a beneficiary’s beneficial interest may not be transferred, voluntarily or involuntarily, before the trustee has delivered the interest to the beneficiary. (Added to NRS by 2009, 785)