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.