Nevada asset protection trusts are a valuable tool in protecting your assets from creditors and judgment holders and can help you sleep at night knowing that your assets, should the worst happen, will be protected from others who may come after them to collect on a judgment against you or your business. This list of things you should know about Nevada asset protection trusts will give you an idea of why they might be beneficial to you, and whether one might be right for your particular situation.

1. Asset protection trusts are designed to protect your assets from creditors and judgment holders.

Asset protection trusts have been used for centuries to protect assets from those who might come after them for satisfaction of a debt or obtaining payment of a judgment. Asset protection trusts are based upon the common law concept that certain assets, which are placed into trust, cannot be seized by creditors or judgment holders to satisfy a debt or judgment against you.

2. Asset protection trusts need not be difficult and expensive to create.

There are two ways in which an asset protection trust can be created: first, by setting up the trust in a state that has favorable laws regarding asset protection trusts; and second, by using your will to create an asset protection trust. An experienced asset protection attorney can help you determine which approach should be used for your particular situation. The great thing about Nevada asset protection trusts is that they are easy and inexpensive to set up. You do not have to be an expert in asset protection trusts, or need to hire an attorney. You do not even need to leave Nevada.

3. Nevada asset protection trusts can provide you with a number of benefits.

Nevada asset protection trusts are easy to set up and provided that they are properly drafted, they can help protect your assets from a creditor, who may come after your assets and judgment against you. If you set up the trust correctly, it can ensure that your liquid resources remain under control while protecting other non-liquid assets. In addition, in some states you may be allowed to make a short list of beneficiaries and have them take over management of the trust. In states like Nevada where asset protection trusts are prevalent, the trustees of the trust will often pay you from the cash flow generated by the assets in your trust. This can provide an effective source of income while also providing an extra layer of protection for your assets in case they are seized by a creditor or judgment holder.

4. Not all states recognize Nevada asset protection trusts.

Because many states do not recognize Nevada as a preferred state for asset protection trusts, establishing an asset protection trust in another state can be more complicated than it would be with a Nevada trust. Several other states like New York, Iowa, and California recognize Nevada trusts and make it easy for a person to establish one. For instance, an experienced asset protection attorney can help you determine which approach might be best for your particular situation.

5. Nevada asset protection trusts are designed to take effect only after you die.

Many people think that setting up an “asset protection trust” is the same as setting up a “living trust”. This is not true. While an asset protection trust can be used for the same purpose as a living trust (this is actually true of most trusts), most people need a living trust to avoid probate and to provide for the management and control of assets during their lifetimes. With that said, Nevada asset protection trusts can be designed to take effect only after you pass away. This can ensure that your assets are protected while you are alive, but also avoid estate taxes on your assets when you die.

There are a number of reasons why Nevada asset protection trusts may be beneficial to you, and the list above details some of those reasons. If you have any questions about setting up an asset protection trust, or if you would like to speak to an experienced asset protection attorney who can help you evaluate whether such a trust would be beneficial in your particular situation.