In re Aboud Inter Vivos Trust

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At issue in this case was trust property that was transferred from the trust to a limited partnership by consent of the trust beneficiaries. The partnership subsequently transferred the property to a third-party business. The district court (1) imposed a constructive trust on the previous trust property based on the alleged improper transfer made by the partnership to the third party, and (2) entered a personal monetary judgment against the former trustee and the third party holding the former trust assets. At issue on appeal and cross-appeal was whether the in rem jurisdiction over the trust assets conferred upon the district court by Nev. Rev. Stat. 164.010(1) and 164.015(6) permitted the district court to impose the constructive trust and to enter the personal monetary judgment against the former trustee and third-party company. The Supreme Court reversed, holding that section 164.010(1) and 164.015(6) did not confer jurisdiction upon the district court to enter a constructive trust on the disputed assets and a personal monetary judgment against the former trustee and third-party company because in rem jurisdiction only extends to property, and the disputed assets were no longer trust property after they were transferred to the limited partnership. Remanded. View "In re Aboud Inter Vivos Trust" on Justia Law