More and more people recognize the advantages of estate and wealth planning that utilize Nevada law. According to a client advisor and vice president of a trust company, Nevada is among the friendliest states when it comes to the treatment of trusts. Establishing a trust in the state can act to increase family wealth, make estate planning more flexible and protect assets from creditors.
Nevada’s tax policies allow people to pass wealth to future generations more easily than the policies of other states. One special form is the dynasty trust, which can have a term of up to 365 years. The maximum term for a trust in California, for example, is less than one-third as long. Moving assets from another state into a Nevada trust may also give the owner of the trust inheritance or income tax advantages.
Nevada has statutes on the books that allow for a trust to have a specified trust protector, who is a person that can modify an irrevocable trust in the best interest of the beneficiaries. Nevada estate plans are more flexible in that way. Keeping the assets in trusts called self-settled spendthrift trust can prevent creditors from reaching them. It can be a safer alternative to moving assets offshore for many people. It is possible for people in any state to set up Nevada accounts or trusts to take advantage of the state’s laws.
People who have questions about estate planning or setting up trusts in Nevada should set a meeting with a lawyer. A lawyer with experience in trust planning might be able to explain the different structures of trusts available and outline their potential benefits and limitations. A lawyer may help the client identify and categorize assets and design instruments like a will, life insurance policies or trusts to ensure assets are distributed according to his or her needs and goals.