A trust can serve many purposes, but one primary benefit is asset protection. Nevada, in particular, with the passage of the Spendthrift Trust Act of Nevada, has established laws that allow an individual to set up self-settled spendthrift trust, which offers a high level of protection from creditors.
Basics of a Self-settled Spendthrift Trust
In general, a spendthrift trust creates a restraint on the voluntary transfer of trust assets, as by the beneficiary, and involuntary transfers, as by creditors. A self-settled spendthrift trust, properly executed by an asset protection attorney, allows one person to act as both settlor and beneficiary of the trust, which allows that individual to control the assets and have use of the assets free from the reach of creditors.
- Among the many advantages of such an asset protecting trust are:
- The individual need not be a Nevada resident
- Any type of asset can be protected from creditors
- Any amount of assets can be protected
- Allows assets to remain in the US and avoids the necessity for complicated foreign or offshore plans
- Provides special protection for future generations
One issue to consider is that there must be two trustees and that the settlor cannot distribute the assets him or herself. Consequently, the settlor, who acts as the co-trustee, must have a person or entity that is trustworthy. Additionally, two years must pass between when the asset was transferred to the trust before it is fully secure.
Contact an Asset Protection Attorney for Legal Advice
If you are concerned with creditors, bankruptcy or simply desire securing your family’s financial well-being, you should consider the benefits of a Nevada trust. We can help. Call the Sutton Law Center, an asset protection attorney group, at (775) 824-0300.