NEVADA ONSHORE TRUST BASICS

In terms of personal protection, the Nevada Spendthrift Trust (AKA: "Nevada Onshore Trust" or "Nevada Wealth Preservation Trust" or "Nevada Domestic Asset Protection Trust") offers unparalleled protection:

1. Nevada law 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 the Beneficiary (i.e. entitled to receive the benefit of trust assets) and the assets are still protected from creditors while in trust.

2. You need not be a Nevada resident to take advantage of the Nevada Spendthrift Trust Act [requires either that: (1) the trustor/creator of the Trust be a Nevada resident; or (2) the primary assets of the Trust be Nevada property; or (3) that a Trustee of the Trust that has the primary administrative function is a Nevada Resident, Nevada Trust Company or Nevada Bank. [The Nevada Spendthrift Trust Act requires either that, if the declared domicile of trustor/creator of the Trust is not Nevada, then 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 Trustee must 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]

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

4. The Nevada Spendthrift Trust can provide protection from your own potential judgment creditors. By way of summary, here is how that protection is legally afforded:

A. Trust assets may be used only for the Health, Education, Welfare, Maintenance and Support of the beneficiary and for no other purpose.

B. Payments and distributions by the trustee may be made only to the beneficiary (who can also be the person establishing the trust). Payments are in the discretion a trustee.

C. 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.

D. 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 Trust Act.

E. The trustee may not distribute from the trust to a beneficiary if the trustee knows or believes that the distribution would be seized by a creditor once it is in the beneficiary's control.

SUMMARY OF BENEFITS OF THE NEVADA SPENDTHRIFT TRUST

$ You keep control of your assets
$ You benefit from and use your own assets (need not relinquish your control of the assets)
$ You can protect any amount of assets from creditors
$ You can protect any type of asset from creditors
$ It can be used by individuals who are not Nevada residents
$ Assets are kept within the United States and not subject to overseas risks and tax and reporting problems and scrutiny
$ Less expensive and complicated than foreign/offshore asset protection trusts which are prone to IRS audits and investigations
$ Less expensive and more protective than malpractice or other insurance
$ Peace of mind from litigation/creditor harassment
$ Trust assets may provide avoidance of becoming bankruptcy property (subject to prior transfer time limits)
$ Protects future Generation's assets
$ Can protects assets with sentimental value
$ Keeps assets "in the family"
$ Can be integrated with your existing estate plan
$ Assets held in the trust avoid a probate proceeding upon your death
$ Trust assets may be protected from becoming marital or community property in the event of a future marriage
$ Allows maximum anonymity and privacy

CAVEATS

1. If the person establishing the Trust will be a Trustee and a Beneficiary of their own Trust, another Trustee must also be appointed. This other Trustee must have the discretion over distribution of assets to the beneficiaries
2. 2 year Window of Exposure: [If action is taken within 2 years of the Trust's creation and transfer of assets to the Trust (or when a creditor "reasonably" should have known of the transfer), a judgment creditor can judicially attempt to recover assets that have been transferred into the Trust to satisfy the Judgment] ---- [Note: Through proper advanced planning, the Trust assets may be protected, even during the 2 year "exposure" period]
3. A small amount of little bit of inconvenience (additional bank accounts, proper procedure in distributing to beneficiaries, etc.)

WHO MAY BENEFIT FROM A NEVADA SPENDTHRIFT TRUST?

$ Nevada Residents and Non-Nevada Residents alike
$ It is ideal for Doctors, Dentists, Chiropractors, Lawyers and other professionals with potential malpractice liability
$ Real estate and other investors
$ Individuals with equity in their homes that exceeds the statutory homestead protection amounts
$ Just about anyone who would like to protect the wealth that they work so hard to accumulate