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Nevada Asset Protection Trust

Nevada Asset Protection Trusts are self-settled spendthrift trusts, which means you can settle a trust as well as benefit from the assets, with protection from future creditors or lawsuits. Once you transfer assets into a Nevada Protection Trust there is a two year period where your wealth is exposed to creditors, however after the statute of limitations expires your assets are locked inside your trust and are unreachable by your creditors or to satisfy a judgment.

There are very few limitations for trust customers; as long as the trust was not established to defraud known creditors and operating formalities are met, you can benefit from Nevada’s protective legislation. At least one trustee has to be a Nevada resident who is responsible for maintaining trust records, filing tax requirements and the trust has to be mostly administered in the state of Nevada.

Wealth protection and substantial control
Trust settlors (you) have substantial control (power) in trust activity, especially as to how distributions are made to trust beneficiaries. Although you could not directly order a trustee to make a regular payment to the trust settlor, you can however request distributions to be made and have veto power over distributions to other trust beneficiaries. This allows a trust settlor to remain in the driver’s seat during asset distributions, what you lose is the ability to independently control the timing and amount of distributions to yourself. Another peace of mind feature built into these laws is the ability for the trust settlor to serve as an “investment trustee” who can unilaterally manage and invest trust assets. Another feature is the power to remove and replace your Nevada trustee. Finally, you can establish how the trust would be distributed upon death of the settlor through what is called “power of appointment”.

The asset protection trust arena is new in the US and only a few states have adopted asset protection trust law. Nevada has long been known as a business-friendly jurisdiction with favorable corporation and LLC laws and courts that have proven to uphold the corporate veil, now it has stepped out front as the domestic jurisdiction of choice for settling an asset protection trust. It will be some years before case law develops, however Nevada laws are clear on the protection afforded by a properly established and settled asset protection trust.

Why Nevada
It has been said that Nevada offers the best legal framework for creating and maintaining a domestic asset protection trust. In 2010 Nevada asset protection trust received an A+ rating by Forbes magazine, the best in the nation and the only state to score an A+ out of 13.

• No state income taxes
• No state corporate taxes
• Shortest statute of limitations on asset transfer (2 years), which can be as short as 6 months if properly implemented
• All creditors are barred from accessing trust assets, including alimony, child support, judgments, etc.
• Highest evidentiary standard; any creditor challenging the transfer of assets must provide clear and convincing evidence of the intent to defraud

The most domestic asset protection
Until recently, if you wanted a self-settled spendthrift asset protection trust you had to go offshore. Now, US clients that are not comfortable with foreign trustees and financial institutions have a strong option. You can get the same level of creditor protection in a domestic vehicle with fewer operating formalities and less expense making a Nevada Asset Protection Trust a viable option as a primary strategy.

Diversify your asset protection plan
If you already have an asset protection plan in place, a Nevada trust offers diversity to your strategy. The top asset protection law firms in the world recommend spreading your wealth protection around in multiple asset protection vehicles and in multiple asset protection jurisdictions. This would make your legal opponent fight the battle on multiple fronts, adding a huge expense to the legal costs of pursing your wealth. A Nevada trust could compliment any asset protection plan, offshore or domestic.

Speak to a Nevada business service professional today, free consultations during normal business hours, call 1-800-COMPANY