Nevada Asset Protection Trusts

If you own significant assets without proper protection, you may be exposed. A lawsuit, business liability, or judgment creditor can threaten everything you have attained. 

A Nevada Asset Protection Trusts (NAPT) a/k/a Domestic Asset Protection Trust (DAPT) a/k/a Self-Settled Spendthrift Trust can be established as part of a legal structure that shields assets from individual creditors while keeping you in control of managing your nest-egg assets.

When it comes to asset protection, Nevada stands alone paving the way for other states. Nevada’s statutory law and case law have set Nevada apart from other states with beneficial trust laws, allowing Nevada to emerge with the most iron-clad generational wealth protection available in the U.S. 

Several benefits why Nevada should be a contender when considering generational estate planning and wealth preservation include:

• Generational Asset Protection. Nevada has strong case law precedent in favor of upholding the protections of spendthrift trusts for creditor protection, allowing for added wealth preservation to ensure your wealth is retained for your benefit and/or the benefit of your heirs. A feature that sets Nevada apart is that Nevada does not have statutory exception creditors, meaning that a Nevada spendthrift trust can provide protection against “super creditors” such as bankruptcy proceedings and divorce proceedings.
• Flexible Laws. With respect to an irrevocable trust, Nevada’s flexible trust law allows for heirs to be able to modify the administrative terms of a Nevada trust as needed to allow for unforeseen changes in the law, including but not limited to, changes in taxation. While the term “irrevocable trust” sounds rigid and unchangeable, the process of decanting provided for under Nevada law is a popular way to modify the terms of the trust and increase flexibility.
• Income Tax Benefits. Nevada is one of only a few states with no income tax on trusts. Accordingly, a trust domiciled and administered entirely in Nevada may avoid state income taxes altogether.
• Generational Planning. Nevada trusts can last up to 365 years to provide long-term wealth preservation and planning for numerous generations, commonly referred to as a 
  “Dynasty Trust.” 

Who Needs Asset Protection?

Business owners, professionals in high-risk careers such as health care professionals, first responders, etc., or anyone with significant net worth.

Timing Matters

Asset protection works best when set up as a preventive measure. Once a creditor has a claim or judgment against you, it may be too late to benefit from the protections of a Nevada Asset Protection Trust. That is why we recommend proactive planning when considering asset protection.

To schedule your Estate Planning consultation, call us at (702) 996-6052 or contact us online today.