Nevada Asset Protection Trust: Your Best Option?
By Phil Rarick, Miami Asset Protection Attorney
Nevada Asset Protection Trusts have become exceptionally popular for California physicians and other professionals looking for the best way to protect their assets in our present environment of high cost litigation. Although each person’s individual goals and circumstances are different, a Nevada Asset Protection Trust, properly structured and set up in a timely fashion, may be the best option for many Florida professionals. Here are 3 reasons:
- Nevada law allows self-settled trusts; Florida does not. This means that a Nevada Asset Protection Trust can be structured so that you, as the grantor – the person who establishes the trust – can also be the beneficiary and still have your trust assets protected.
Among the top tier states with good asset protection laws, Nevada is arguably the best jurisdiction. The top tier states are Nevada, South Dakota, Alaska, Ohio and Delaware but according to a national analysis, Nevada ranks first in most key categories for evaluating the strength of state trust laws. See my article: 5 Reasons Nevada is the Best State for Asset Protection Trusts.
For example, Nevada has a 2 year statute of limitations for future creditors and 2 year or 5 year limitations from date of discovery for pre-existing creditors with claims against a Nevada Asset Protection Trust.
- Nevada permits a hybrid trust. This type of Nevada Asset Protection Trust can be exceptionally difficult to attack. The hybrid trust is a form of domestic asset protection trust where the trustmaker or grantor is not an initial discretionary beneficiary, but rather a person who can be added later to the trust as a beneficiary. For example, the Nevada Asset Protection Trust can be set up initially for the trustmaker’s spouse and/or children. If the Trustmaker is not married, there may be other options to consider. See: Nevada Hybrid Trust.
- Don’t Wait: Timing is important. Asset protection planning is best done when the waters are quiet and there is no imminent threat of a lawsuit. Waiting too long to plan can eliminate good options such as a Nevada Asset Protection Trust.
- Flexible structure is important. A Nevada Asset Protection Trust is irrevocable so it is important to structure the trust in ways that allow for flexibility. For example, by using a trust protector or advisor, you likely want to retain options to move the trust to an off-shore jurisdiction, remove the trustee, or terminate the trust.
For more information about Nevada Asset Protection Trusts or to schedule a consultation, contact attorney Phil Rarick with Rarick & Beskin at (305) 556-5209 or firstname.lastname@example.org. As a Miami asset protection attorney with over 20 years of experience we welcome the opportunity to meet with you and discuss your legal options.