Nevada Asset Protection Trust (NAPT) Basics

*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 protection, the Nevada Spendthrift Trust (AKA: “Nevada Asset Protection Trust” or “Nevada Wealth Preservation Trust” or “Nevada Domestic Asset Protection Trust” and other common nicknames) offers unparalleled protection:

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.

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.

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 Act

The Nevada Spendthrift Trust Act provides protection from your own potential future judgment creditors. In sum, here is how that protection is afforded:

A. Trust assets may be used only for the benefit 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 of a special trustee (commonly referred to as a “distribution trustee” or “trust protector”).

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 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.


1.  You keep control of your assets

2.  You benefit from and use your own assets (need not relinquish your control of the assets)

3.  You can protect any amount of assets from creditors

4.  You can protect any type of asset from creditors

5.  It can be used by individuals who are not Nevada residents

6.  Assets are kept within the United States and not subject to overseas risks and
tax and reporting problems and scrutiny

7.  Less expensive and complicated than foreign/offshore asset protection
trusts which are prone to IRS audits and investigations

8.  Less expensive and more protective than malpractice or other insurance

9.  Peace of mind from litigation/creditor harassment

10.  Trust assets may provide protection from becoming bankruptcy property in a future bankruptcy (subject to certain fraud provisions specified in the bankruptcy law)

11.  Protects future Generation’s assets

12.  Protects assets with sentimental value

13.  Keeps assets “in the family”

14.  Can be integrated with your existing estate plan

15.  Assets held in the trust avoid a probate proceeding upon your death

16.  There is a great deal of flexibility in how the Trust document is drafted and the specifics can vary depending on the desire to balance maximum protection with your ability to have maximum control.



1.  If the person establishing the Trust will be a Trustee and a Beneficiary of their own Trust, another co-trustee must also be appointed.  This co-trustee (commonly called the “distribution trustee” or “trust protector”) must have the discretion over distribution of assets to the beneficiaries.

2.  The protection of the Trust is subject to Fraudulent Transfer restraints: Under the Nevada Spendthrift Trust law, a challenging judgment creditor cannot access assets in the trust, unless it can successfully prove in court that the transfer of the assets to the trust was a fraudulent transfer. The current Nevada Spendthrift Trust law provides for a 2 year statute of limitations to bring a fraudulent transfer challenge. [Note that the Nevada Spendthrift Trust law has narrowed the ability to pierce the Trust after formation to the basis of Fraud only – this is the most protection afforded by any U.S. jurisdiction that has an asset protection trust law (currently only 6 other states have a similar asset protection trust law)].

3.  A small amount 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

To schedule your free consultation regarding Asset Protection CLICK HERE