By Phillip B. Rarick, Esq., Miami Trust Attorney
State laws provide numerous legal opportunities for protecting your family’s hard earned wealth. See my recent article: Asset Protection for the Small Business Owner: 7 Key Strategies.
An important domestic strategy is a Domestic Asset Protection Trust or DAPT. Because of the ever more stringent IRS reporting requirements for off-shore entities, DAPT’s are becoming a popular asset protection tool. See Hybrid Asset Protection Trust
Once you have decided to do a domestic asset protection trust, the question is where is the best state to locate the trust. At least five states have excellent DAPT laws: Nevada, South Dakota, Alaska, Ohio, and Delaware. Thanks to the work of highly respected Nevada attorney Steve Oshins, who helped draft the state legislation, Nevada likely has the strongest laws for DAPT’s. See state law comparisons by clicking here: DAPT State Rankings.
There are five reasons a Nevada Trust has the edge:
- No state income tax
- Two year statute of limitations for future creditors
- Two year statue of limitations or .5 year from date of discovery for pre-existing creditors
- No spouse/child support exception for creditors
- No pre-existing torts exception creditors
Conclusion
Choosing the right jurisdiction for your asset protection structure is only one of many key considerations in preparing a structure that is best for you, your family, and your budget. This is a specialized area of the law where you need a trust attorney experienced in asset protection.
For more information about Nevada trusts or to schedule a consultation, contact attorney Phillip B. Rarick, Miami Trust Attorney, with over 20 years of experience, at info@raricklaw.com or call 305-556-5209.
Special Note
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult a Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.