Special trustee may exercise the power to adjust for year preceding appointment

The beneficiary-trustee obtained the appointment of a special trustee whose sole responsibility was to decide on the propriety of the use of the power to adjust under Nevada’s version of the Uniform Principal and Income Act.

The trustee was appointed in 2005 and petitioned for approval of the decision to exercise the power to adjust for the year 2004.

The court held in In re Orpheus Trust, 179 P.3d 562 (Nev. 2008), that the statute contemplates that at a minimum a special trustee may exercise the power to adjust of the year prior to the trustee’s appointment.