Business owners and entrepreneurs in Nevada work hard to establish their companies and build a solid reputation among clients and customers. However, as many business owners already know, any number of things can create a situation where the business owner is sued by another party. When this happens, the business owner’s assets could actually become liabilities if the petitioner seeks a large amount of restitution, whether through a jury verdict or through settlement. Business owners and other professionals in the state have an instrument available to them to help safeguard their liquid assets: an asset protection trust.
APTs and protecting assets from litigation
Nevada is one of 19 states that offer asset protection trusts. The instrument is designed to keep a trust owner’s assets safe from litigation and settlement awards as well as other predatory lawsuits from vested parties seeking renumeration. One business owner in another state shared her story in the report of her having ultimately used an asset protection trust to shield her assets.
The woman was an internet influencer in California. Due to some of the things the woman said online, she was sued, and she settled the case for far more than she had anticipated. Later, the woman learned of asset protection trusts and put one in place. She was sued again, but this time, the APT made it far more difficult for the plaintiffs to obtain a quick and substantial settlement. The woman reportedly settled the matter for 10% of the original amount sought.
Seek counsel regarding APT creation
Those in Nevada who have accumulated significant assets through owning a business or some other means should look into asset protection trusts to help safeguard what they have worked so hard to achieve. An experienced estate planning attorney can sit with the client and explain all available options. The lawyer can also help the client establish the trust in accordance with all state laws and regulations.