In Nevada’s most recent legislative session, significant changes were made to NRS 166,Nevada’s statute governing asset protection trusts. We believe these changes, which became effective on October 1, 2009, further validate Nevada’s asset protection trusts, or Nevada On-shore Trusts (NOSTs), as legitimate and effective asset protection and wealth preservation tools.
Some highlights of the recent changes to the statute are as follows:
- Confirmation that a settlor of a Asset Protection Trust has the right to serve as a trustee of the Asset Protection Trust. NRS 166.040(3)
- Settlors of Asset Protection Trusts can remove trustees, direct investments and execute other management powers. NRS 166.040(3)
- The two year statutory waiting period does not restart if property is transferred from the Asset Protection Trust to be refinanced and then re-conveyed back into it. NRS 16.170 (4)
- Advisers (accountants, attorneys, or investment advisers) to the settlor or trustee of a Asset Protection Trust are protected from third party claims under certain guidelines. NRS 16.170 (5)
As a reminder, Nevada’s asset protection trust statute has been in place for nearly ten years. Nevada is commonly recognized as not only a pioneer in the area of asset protection, but one of the most favorable asset protection jurisdictions in the country. Other states are now joining Nevada and a handful of other jurisdictions to provide the same asset protection techniques Nevada offers to its residents. Fortunately, as a front runner in the industry, Nevada is a seasoned veteran in the field of asset protection and wealth preservation. Consequently, those who formed Asset Protection Trusts early on are now reaping the benefits of increased protection. We remain confident that Nevada’s Asset Protection Trusts are one of the most effective asset protection tools available.
-Attorney Jeremy Cooper