Why Nevada Is the Right Choice
Nevada’s favorable trust laws and asset protection solutions have secured its place as one of the most popular states to create and administer trusts. Tax savings, privacy, and protection from creditors are a few of the advantages for families and high net worth individuals to consider Nevada for their estate planning and wealth management needs. Nevada Trust Company®, established in 1995, understands the intricacies of the State’s trust laws and more importantly, the unique and often complex needs of its clients. Let NTC customize the solutions to preserve your existing assets and generate future wealth for your beneficiaries.
Select Advantages of a Nevada-Based Trust
Lack of State Income Tax
Unlike most states, Nevada does not have state income tax. As a result, a Nevada-based trust is only subject to federal income tax and can benefit from tax savings that may not be offered in other states.
Lack of Inheritance Tax
The State of Nevada does not levy an inheritance tax on beneficiaries of an estate after a decedent’s death. Funds not deducted during the probate process can be invested or utilized to pay federal estate taxes.
Shortest Statute of Limitations
The statute of limitations, also known as the “seasoning period”, is the period of time between when assets are transferred into a trust until the assets held within the trust are legally protected from creditors and fraudulent transfers. Nevada’s seasoning period of 2 years is one of the shortest in the U.S.
No Exception Creditors Protection
After the seasoning period of 2 years, assets held in a Nevada Asset Protection Trust are protected from claims arising from exception creditors (e.g., divorcing spouse, child support, etc.). Nevada is one of the few states that provides this benefit.
365-Year Term
A trust created in Nevada, often known as a Dynasty Trust, can have a term lasting 365 years. With a Dynasty Trust, assets held are subject to an initial estate transfer tax only which allows subsequent generations to benefit from bypassing future transfer taxes.
Favorable Privacy Rules
In general, Nevada-based trusts are filed with the Clark County Recorder’s Office. The choice of whether to record a trust or not is left to the trust’s creator. Nevada offers favorable privacy laws that do not require recording or registration of trusts for public records purposes, a benefit popular with many trust creators to maintain privacy.
Nevada Trust Company® was established in 1995 to be the provider of choice in fiduciary services in Nevada. Still today, we are proud and thankful to be serving our clients locally and those from around the world.