Nevada Strengthens State’s Asset Protection Trust Statutes

11:25 am Uncategorized

Snapshot 2011 06 17 13 19 28 e1308335069652 Nevada Strengthens State’s Asset Protection Trust StatutesAlready known as one of the most progressive asset protection states, Nevada has once again strengthened its asset protection laws by the passage of Senate Bill 221, which was signed into law in early June and becomes effective Oct. 1, 2011.

Some of the key provisions of the new law include:

A “tacking provision” that enables a trustee of an asset protection trust that has been established in a less favorable jurisdiction to transfer the trust to Nevada without restarting the clock.  Most states require a four-year waiting period.

Protects trust assets from divorcing spouse and certain tort creditors previously considered exempt by making it more difficult for creditors to prove a transfer was made solely to evade an existing obligation.

Expands the types of trusts that provide asset protection to include grantor retained annuity trusts (GRATs), qualified personal residence trusts, charitable remainder trusts and other popular estate planning trusts.

There are currently 13 states that provide for the establishment of asset protection trusts: Alaska, Colorado, Delaware, Hawaii, Missouri, Nevada, New Hampshire, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah and Wyoming.

Contact us today for individualized planning strategies to meet your unique needs.

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