Las Vegas Asset Protection Trust Attorney
In Nevada, if you are concerned about having assets in the future as a result of being in a high-risk profession, or if you want to protect your assets from future claims without worrying about violating tax laws or other related issues, you should speak with a Las Vegas estate planning lawyer about the benefits of a Nevada Asset Protection Trust. This type of trust is a Self-Settled Spendthrift Trust (SSST), which is also known as a Domestic Asset Protection Trust (DAPT). Under Nevada law, these types of trusts have only been available for about two decades under Nevada law, but they can be extremely valuable for Nevada residents.
In short, a Self-Settled Spendthrift Trust is one in which the grantor or donor of the trust (the person establishing the trust) is also the beneficiary. However, there are very specific requirements for a Nevada Asset Protection Trust, and you should speak with a Las Vegas asset protection trusts attorney to learn more about whether this type of trust is right for your needs.
What is a Nevada Asset Protection Trust?
Before we explain how a Nevada Asset Protection Trust works, it is important to understand how the more common third-party spendthrift trust works. With this type of trust, a grantor or donor places assets into a trust with children or other parties as beneficiaries. It is an irrevocable trust, which means that, once it is established, the grantor typically cannot modify the trust or cancel the trust. Once the trust has been established, the beneficiaries do not have the final decision over how to spend the money. Instead, distributions from the trust are often at the trustee’s discretion. These trusts often have explicit types of needs for which assets can be distributed, such as health or education. Creditors of the beneficiaries cannot access the assets in the trust.
A Nevada Asset Protection Trust, or Self-Settled Spendthrift Trust, allows the grantor to similarly protect assets from creditors, including ex-spouses. With an SSST, a grantor sets up the irrevocable trust, and that person can list himself or herself as a beneficiary. The grantor will need to contribute his or her assets to the trust. Just as with a third-party trust described above, distributions are made at the trustee’s discretion.
What You Should Know About a Nevada Asset Protection Trust
The following are some of the key things you should know about a Nevada Asset Protection Trust:
- It is an irrevocable trust;
- Income of the trust will not be taxed;
- Trustee must be a Nevada resident (or at least one co-trustee or Nevada trust company); and
- Statute of limitations on asset transfers is two years (which is shorter than most other states).
There are many additional things to know and to consider, and a Las Vegas estate planning lawyer can help.
Seek Advice from a Nevada Asset Protection Trusts Attorney
Whether you have initial questions about how a Nevada Asset Protection Trust could be beneficial to you, or you need assistance establishing a trust, an experienced Nevada Asset Protection Trust lawyer at our firm is here to help. Contact Ghandi Deeter Blackham Law Offices for more information about the services we provide to clients in and around Las Vegas.