LEGAL SPECIALTY AREAS
LEGAL SPECIALTY AREAS
Why are Nevada Asset Protection Trusts more effective than other States’ Asset Protection Trusts?
Nevada Asset Protection Trusts, also known as Self-settled Spendthrift Trusts, are an extremely effective means for people, including business professionals, small business owners, and anyone else with assets to protect, to protect those assets from possible future lawsuits and financial disputes.
Nevada is ranked as the #1 State for Asset Protection Trusts.
Not every state allows any form of Asset Protection Trust. Nevada has one of the shortest statute of limitations periods of any State that does allow them. What does that mean? It means that if someone sues the grantor (the person creating the trust) and obtains a judgment against them, Nevada provides even greater protection than a normal trust, by making it virtually impossible for that creditor to go after any asset that has been in the trust for at least two years. Nevada is one of only two states that don’t allow for any “exception creditors.” Other states that have asset protection trusts usually make exceptions, allowing certain creditors to disregard the rule that assets of the trust are protected. In Nevada, there are no exceptions. No-one can get past the barrier between the grantor’s assets and the Trust’s assets. Nevada trust law is unusual in allowing the same person to be the creator, the trustee, and the beneficiary of certain types of trusts.
Many States do not allow the same person to wear every hat. Depending on the type of trust, and the residency of the grantor, Nevada often does. Whether doing this is in the best of interest of a particular grantor depends on many factors, which should be discussed in depth with your attorney. However, in many instances, this ability can make the formation of a trust substantially less complicated
Why are Nevada Trusts more effective than other States’ Trusts? Nevada has an unusual statute (NRS 163.417) that makes it very difficult for a creditor, or even a court (!) to go after assets held by a trust. Let’s look at an example of how this can help people who have formed a Nevada trust:
Let’s say that you are in an automobile accident. Someone in the other car is very seriously injured, and racks up hundreds of thousands of dollars in medical bills. Although you are a good and careful driver, and you think it was the other driver’s fault, the court decides that it was actually your fault, awards a large judgment against you. The judgment is so big that it would wipe out the savings you worked long and hard to create, and hoped to leave for the benefit of your loved ones. Now that other driver’s attorney is coming after you to collect the judgment. Let’s also say that you had set up a trust, and placed all your significant assets in it. Are those assets safe? Depending on the state where you set up the trust, the safety of those assets might not be assured.
Under Nevada law, the assets in the trust are much more likely to be unreachable than under the laws of many other States.
If you have been injured in an accident, the Law Offices of Mitchell Posin, Chtd provides aggressive and effective representation to ensure that you obtain the maximum award possible. The Law Offices Mitchell Posin, Chtd. is focused on providing personalized service to our clients. You will meet with, and receive personal attention from the attorney. The highly dedicated support staff will provide the utmost in quality service, in an effort to make your experience as pleasant as possible.