An asset protection attorney can offer clients tips on ways to protect their assets from divorce, failed businesses and creditors. In particular, he or she may discuss asset protection trusts and the advantages that they offer. Nevada asset protection trusts are particularly pursued due to their shorter statute of limitations for those states that permit spendthrift trusts. Specifically, a grantor who contributes assets to such a trust in Nevada will have these assets protected from creditors two years after the contribution. Another advantage that an asset protection attorney may highlight about Nevada’s trust is that it does not have any exception creditors, including spouses.
Usage of Trusts
Individuals who own businesses and those in industries where litigation is more common such as doctors, lawyers and engineers are likely to use such asset protection trusts. However, other people can benefit from using such trusts, such as individuals who are concerned about the potential havoc a divorce could cause. Individuals who own a Nevada LLC or LP who are sued personally do not have to worry about the creditor obtaining control or ownership of the business or its assets.
An asset protection attorney can explain that for a trust to be a Nevada asset protection trust, one trustee must usually be a Nevada resident, whether an individual or entity such as a bank or trust company in Nevada. However, the owner of the trust can reside in any other state in the United States and still benefit from the benefits provided by a Nevada asset protection.
In order for a trust to be considered an asset protection trust, the disbursements must be discretionary by the trustee and not provided at planned intervals. This type of trust provides additional protection for the owner of the trust and his or her future creditors. However, in some circumstances an asset protection attorney may be able to protect the client from current creditors. However, in either event, there must be a two-year gap between the establishment of the asset protection trust. There is a tolling period of six months from thee date on which the current creditor learns about a transfer. An asset protection attorney can explain how the different statute of limitations works and differs between the rights and obligations of current potential creditors and future potential creditors. He or she can also discuss the effect of disbursements and any creditors’ rights to these funds.
Legal Assistance from Our Asset Protection Attorney
Individuals who are interested in an asset protection trust must also be aware of its uses and limitations. For example, Nevada has the shortest statutes of limitations. However, even there, a debtor cannot set up an asset protection trust once he or she learns about a pending lawsuit because a transfer would likely be considered fraudulent. Instead, the asset protection trust should be established before any legal troubles are on the horizon. For more information on what you need to know about asset protection, contact an asset protection attorney from Sutton Law Center at (775) 824-0300.