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Nevada Asset Protection Trust Basics (Nevada Spendthrift Trust)

*New – Nevada Law now explicitly allows a Trust created in another state to change jurisdiction to Nevada for better asset  protection! (click for more information)

In terms of Personal Asset Protection, the Nevada Spendthrift Trust (some common nicknames for the Nevada Spendthrift Trust are: “Nevada Asset Protection Trust”, “Nevada Wealth Preservation Trust” or “Nevada Domestic Asset Protection Trust” ) offers unparalleled protection:

  1. The Nevada Spendthrift Trust law (NRS 166.010 et seq.) allows any individual to create a valid trust whereby he or she is a Trustee (i.e. in control of the assets) and he or she is also the Beneficiary (i.e. entitled to receive the benefit of trust assets). Under the Nevada Spendthrift Trust law, the assets may still be protected from future creditors while in trust, even though the trustor is also a trustee and beneficiary of the trust.
  2. You need not be a Nevada resident to take advantage of a Nevada Asset Protection Trust. 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 Asset Protection Trust can provide protection from your own future potential judgment creditors. By way of summary, here is how that protection is legally afforded:
    1. Trust assets may be used only for the benefit the beneficiary and for no other purpose.
    2. 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 of a trustee who is not also a trustor.
    3. 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.
    4. 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.
    5. 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.


  • 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 and the absence of fraudulent intent)
  • 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


  1. If the person establishing the Trust will be a Trustee and a Beneficiary of their own Trust, another Trustee must also be appointed to be a co-trustee. This other Trustee must have the discretion over distribution of assets to the beneficiaries
  2. 2 year Window of Exposure – Now essentially limited to a case of “clear and convincing” evidence of a fraudulent transfer: [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.)


  • 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
  • Business owners
  • Just about anyone who would like to protect the wealth that they work so hard to accumulate