Nevada and 12 other states provide various legislation to help individuals protect their assets through the use of trusts. More states have begun to embrace these special kinds of trusts in order to build upon existing financial planning methods and to attract foreign capital. Asset protection trusts do not actually hide assets or avoid income taxes. However, they may be able to reduce the impact of income taxes in certain limited circumstances or in conjunction with other estate planning methods.
Asset protection can be achieved for Nevada residents when planning ahead. This statement is especially true for individuals with large estates and significant amount of wealth accumulated throughout their lives. Proper steps have to be taken to distribute the assets among the family members, friends, charities or business partners.
The goals of a particular person will often guide one as to whether a trust should be established. Though there are a number of reasons for creation of a trust, asset protection and tax considerations are often of foremost importance.