Considered by many to be one of the best all-around states for asset protection, Nevada offers these distinct advantages that make it an ideal jurisdiction to establish an asset protection trust:

• Generational Tax Benefits with Perpetual Trusts: Nevada trusts can last for 365 years, allowing for growth in trust without the trust assets being subjected to an estate or transfer tax at each generation.
• Income Tax Efficiency: Nevada has no state income, dividend, interest, or capital gains taxes on trust assets. As a result, when a trust is sitused in Nevada, it must fulfill its obligation of filing a federal income tax return, yet there is no accompanying Nevada tax requirement or filing. This means that assets invested within a Nevada trust can grow significantly over time without being subject to state income taxes.
• Optimized Planning: Nevada’s trust statutes enable comprehensive planning opportunities in addition to asset protection, including the use of silent trusts, directed trusts, and trust decanting.
• No Exception Creditors: Nevada has no exception creditors for self-settled trusts. An exception creditor is a creditor that is able to gain access to the trust assets after the statute of limitations period, because the public policy of that state offers additional protections for that particular type of creditor. many other state laws allow for one or more types of exception creditors to pierce the domestic asset protection trust (DAPT), including a divorcing spouse, alimony, child support and/or preexisting tort creditors, among other potential exceptions. Nevada has no statutory exception creditors.
• Shortest Statute of Limitations Related to Creditor Claims: Nevada has one of the shortest statute of limitations periods for asset protection trusts. Prospective creditors of grantors who establish Nevada asset protection trusts have two years from the asset transfer date to file a valid claim, while preexisting creditors have the longer of two periods: two years from the transfer date or a six-month extension from when they became aware of the transfer. This is shorter than many other jurisdictions, which typically offer a four-year statute of limitations and a one-year tolling period. Nevada also allows a grantor to initiate the discovery period by making a public record after the transfer, effectively extending the statute of limitations to two years for all creditors, except in cases of fraudulent transfers.

 
Note: The information provided here is for general educational and informational purposes only. It is not legal advice and should not be interpreted as such. For a thorough understanding of these topics relevant to your specific circumstances, we recommend consulting a qualified estate planning attorney. Peak Trust Company cannot provide legal advice; however, we can serve as an informational resource and provide referrals to highly skilled attorneys who can offer legal and tax guidance tailored to your specific needs.