Posted on October 3, 2011 by Greg Herman-Giddens

Nevada Asset Protection Trust Laws Improved

Nevada’s new  Domestic Asset Protection Trust (DAPT) laws became effective October 1, 2011. One new feature is the ability to move a DAPT that was established in another state to Nevada without having to start the statute of limitations period over.

For example, say you set up a DAPT in a state where there’s a four-year waiting period for protection, where the law expressly allows a divorcing spouse to pierce through the trust, and/or  permits a pre-existing tort creditor to pierce through the trust.  You can now transfer that trust to Nevada to take advantage of Nevada's more protective laws without having to re-start the waiting period for protection to begin.

At two years, Nevada's waiting period is the shortest, and it is the only state with no "exception" creditors.  Check out Steve Oshin's Domestic Asset Protection Chart for an up-to-date comparison of DAPT jurisdictions.

DAPTs do require use of a trustee in the jurisdiction in which the trust is established, but they can be used by residents of any state. Protection against court challenges for non-residents may be somewhat uncertain, but DAPTs are increasingly popular with real estate developers, physicians, and others concerned about future creditors.  They are normally used in conjunction with Limited Liability Companies to provide another level of protection and more control to the trust grantor.

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Posted on May 22, 2007 by Greg Herman-Giddens

Nevada Offers Estate Planning Advantages

North Carolina is not known for its attractive estate planning and asset protection laws, but NC residents can avail themselves of certain out-of-state planning strategies that can provide significant estate tax savings and creditor protection.  One state that has some of the most favorable laws is Nevada.

As a write this, I'm sitting in a hotel room in Las Vegas, having just finished up a meeting with nationally known estate planning and asset protection attorney Steve Oshins, whose office is located here.  Mr. Oshins, who is published frequently in Trust & Estates magazine and Estate Planning magazine, has developed several innovative trusts and trust-related strategies, such as the Megatrust, the Inheritors Trust and the Opportunity Shifting Trust. 

I have joined Mr. Oshins' Advanced Planning Legal Network to be able to bring these same types of techniques to my clients.

Click  "Continue Reading" for a brief description of the advantages of using Nevada laws for estate planning.

Nevada Estate Planning Strategies:

  • Limited Liability Company - Nevada has a law that limits the remedy of a creditor to a "charging order," and is otherwise attractive from an asset protection and estate tax planning standpoint.  Nevada also permits "Series" LLCs, which are bascially one main LLC with a "sub" LLC for each separate asset.  It provides the same protection as having a separate LLC for each asset, but avoids the additional cost and complexity of multiple LLCs.  As with all states, a local resident agent is required.
  • Dynasty Trust - Nevada now has a 365 year statute rule against perpetuities, which means that a trust can last for 10 generations or so.  In most states, including North Carolina, trusts can last for only about 100 years.  Keeping the assets in trust for a long period of time provides creditor protection and avoids estate tax for one's heirs, ensuring that even modest wealth ($1-2 million) can grow into a lasting legacy.  At least one trustee of the trust must be a NV resident or bank or trust company.
  • Asset Protection Trust  - Nevada law allows one to establish a trust for one's own benefit (called "self-settled trust) that is protected from most creditors after just two years.  Only a few other states allow such trusts, and these states require a longer period of time to elapse before the protection is effective.  Just like with a Dynasty Trust, a NV trustee is required.

Nevada also has no income or estate tax.

 

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