Nevada Asset Protection Lawyers
The team at Solomon Dwiggins & Freer, Ltd. has extensive experience, and they are particularly suited to advise regarding asset protection plans that conform with Nevada law. We use Nevada asset protection trusts, also known as self-settled spendthrift trusts, in connection with judicious use of limited liability entities and statutory exemptions. The combination of these estate planning tools provides clients with the most effective means available to lawfully shield assets from creditors.
Nevada Asset Protection Trust
A Nevada asset protection trust is an entity in which a person can protect assets transferred to the trust from future creditors. A spendthrift trust is an irrevocable trust that prohibits the transfer of a beneficiary’s interest (whether voluntarily or involuntarily). As long as the trust’s assets remain within a spendthrift trust, the assets generally cannot be reached by the beneficiary’s creditors (until and unless the assets are actually distributed to the beneficiary). Instead of outright distribution, the trust assets may be applied for the beneficiary’s benefit, for example by purchasing a house for the beneficiary’s use.
A typical Nevada asset protection trust is designed to be a grantor trust for income tax purposes, meaning that the income of the trust assets will be reported on the grantor’s tax return. This also means the trust is generally disregarded as a separate entity for income tax purposes and no gain or loss will be recognized upon transfer of assets to the trust. The $250,000 exclusion of gain ($500,000 for married individuals filing jointly) upon the sale of a principal residence will still be available after transfer to the trust, assuming all other requirements are met.
Recent Changes to Nevada Law
Until recently, the only way a person could establish (or settle) an asset protection trust for his or her own benefit was to incur the significant cost, trouble and insecurity of forming the trust in a foreign jurisdiction. The laws of most states provide that a person cannot establish a trust for his or her own benefit that is inaccessible to creditors.
Just over 10 years ago, the Nevada Legislature amended the Nevada Revised Statutes to allow the formation of an asset protection trust, provided certain formalities are satisfied. Although the trust instrument is irrevocable, the settlor can retain a significant degree of control over the trust through powers of appointment.
Take Action Early
It is important to seek legal guidance well in advance of any issues. This can likely prevent the need for litigation, saving time and money. The lawyers at Solomon Dwiggins & Freer, Ltd. have experience representing attorneys, doctors, entrepreneurs, business owners and other professionals with all aspects of asset protection and will tailor our services to meet your unique needs.
Protect Your Wealth
Federal and Nevada laws also present fertile opportunity to protect an individual’s assets from creditors through the maximum utilization of exemptions and limited liability entities. With proper planning, many individuals can take advantage of these legally sanctioned opportunities for creditor protection. At Solomon Dwiggins & Freer, Ltd. we can help achieve your goals.