What is a Nevada Domestic Asset Protection Trust?
All right. So question number one; What is a Nevada Domestic Asset Protection Trust? It is just flat-out legal, and legitimate, and not even sneaking around asset protection. You create this trust, you appoint a friend or someone you trust to be the trustee of that trust. And then you can put whatever assets you want into that trust. And after two years, those assets cannot be touched by any of your creditors. Anybody who’s coming after you for money, they can’t touch what’s in that trust.
Why would you need an asset protection trust?
Question number two; Why would you need an asset protection trust? The reason you would need an asset protection trust is if you are trying to build wealth and keep wealth. As your wealth increases, people come out of the woodwork and try to rip that out of your hands. You could have a business partner dispute. You could have a business customer dispute or a vendor dispute. You can have a tenant who slips and falls. You can be on a highway and have a car accident. The basic thing is you can anticipate some of these situations, but you cannot anticipate all of them. You know some of the people in your life who would like to get your money, but there are others who you don’t know and some of them know you. So what you want to have is a safe place to put your assets that you know that nobody can touch them.
Why is Nevada the place for your asset protection trust?
Question number three; Why is Nevada the place to create your asset protection trust? The answer is that there are about 14 states in the country that have these asset protection trusts, and Nevada is ahead of all of them for two reasons.
- Nevada has the shortest period of time (2 years) for the assets to go hard and actually be protected from creditors.
- Nevada, unlike any of the other states, has a Nevada Supreme Court case opinion where the Supreme Court upheld the statute and they said, “We know that the Nevada legislature wants these protection trusts to be bulletproof,” and they made them bulletproof.
When should you prepare a domestic asset protection trust?
Last question, when is the right time to prepare your Nevada Domestic Asset Protection Trust? The answer is really two years before you are going to need it because it takes two years from the time you put property or an asset in there for it to go hard and be protected from creditors. Now, the reality is you’re going to need that kind of protection before you think you’re going to need it.
Our Reno Asset Protection Attorneys Can Help
When it comes to bulletproofing your business, your assets, and your wealth, few Nevada law firms have the years of experience and customer satisfaction that Sierra Crest Business Law Group boasts. If you need your wealth protected now, pick up the phone and give us a call.