RD Johnson & Associates, LLC

NEVADA ONSHORE TRUST

PERSONAL ASSET PROTECTION TOOL

In terms of “back end” protection, the Nevada “Onshore Trust” offers unparalleled protection. Following are some basic facts about the Nevada “Onshore Trust:”

• Nevada’s Spendthrift Trust Act allows any individual to create a valid trust whereby he or she is a Trustee (i.e. in control of the assets), he or she is also the Beneficiary (i.e. entitled to receive the benefit of trust assets) of the Trust and the assets are still protected from creditors while held in trust.

• You need not be a Nevada resident to take advantage of the Nevada Spendthrift Trust Act. The Nevada Spendthrift Trust Act requires either that, if the declared domicile of trustor/creator of the Trust is not Nevada, the at least one of the Trustees of the Trust must have powers that include maintaining records and preparing any income tax returns for the Trust and that that Trustee be either a Nevada resident, a trust company legally operating in Nevada, or a bank that legally operates in Nevada, and that all or part of the administration of the Trust be performed in Nevada.

• Any type of asset (real property, personal property, cash, stocks, bonds, jewelry, family heirlooms, etc.) in any location can be protected by the Nevada Spendthrift Trust

• The Nevada Spendthrift Trust Act provides for near absolute protection from creditors in the following manner:

• The Trust, by law, prohibits the assignment, alienation, acceleration and anticipation of any interest of the beneficiary under the trust by the voluntary or involuntary act of the beneficiary, or by operation of law or any process.
• Payments and distributions by the Distribution Trustee are made only to the beneficiary (who can also be the person establishing the trust).
• The Trustee of a spendthrift trust is required to disregard and defeat every assignment or other act, voluntary or involuntary, that is attempted contrary to the provisions of the Nevada Spendthrift Act.

Benefits of the Nevada Spendthrift Trust

Some of the benefits of the Nevada Onshore Trust are as follows:

• Through being able to be a Trustee of the Trust, you keep control of your assets
• You may receive the full benefit and use your own assets (you do not need not divest yourself of the assets)
• You can protect an unlimited number or amount of assets from creditors
• You can protect any type of asset from creditors
• The Nevada Onshore Trust can be created and used by individuals who are not Nevada residents
• Your assets are kept within the United States and are not subject to overseas risks and
tax and reporting problems
• The Nevada Onshore Trust is less expensive and complicated than foreign/offshore asset
protection trusts which are often prone to IRS audits and investigations
• A Nevada Onshore Trust is less expensive and more protective than malpractice or other insurance
• Allows you to have peace of mind of being protected from potential loss of your assets through litigation
• The Nevada Onshore Trust may avoid loss of the assets of through a Bankruptcy
• You can protect assets for your family’s future
• You can keep assets "in the family"
• The Nevada Onshore Trust can be integrated with your estate plan

Caveats

There are a few caveats to the Nevada Onshore Trust. Some of those are as follows:

• If the person establishing the Trust will also be a beneficiary of the Trust, a Co-Trustee or Distribution Trustee must also be appointed, such that the “Trustor” does not have sole discretion over distribution of assets to the beneficiaries

• 2 year Window of Exposure: If a creditor is a creditor when the transfer of property to the Nevada Onshore Trust is made, the creditor may bring an action with respect to the transfer of property to the Onshore Trust, if the lawsuit is brought within 2 years of the transfer or within 6 months after the creditor discovers or reasonably should have discovered the transfer, whichever is later. After that point, the window of opportunity for the creditor to bring an action to recover property from the Onshore Trust is forever closed ---- [Note: Through proper planning, the Trust assets can be protected, even during the 2 year “exposure” period]