Frequently Asked Questions

No. You do not need to live in Nevada. You only need a Nevada-based trustee or trust company. Many Californians, New Yorkers, and residents of other states successfully use Nevada trusts to protect their assets and reduce taxes. Nevada law imposes no residency requirement on grantors or beneficiaries.

A Nevada Asset Protection Trust (NAPT) focuses on protecting assets from creditors and lawsuits. A Dynasty Trust focuses on passing wealth across multiple generations without estate taxes. Some families use both in a comprehensive estate plan — the NAPT for asset protection during the grantor's lifetime, and the Dynasty Trust for multi-generational wealth transfer.

Costs vary depending on complexity, but typically range from $3,000 to $10,000 for a properly drafted Nevada Asset Protection Trust. This includes legal fees, trustee setup, and initial consultation. Dynasty trusts and directed trusts may cost more due to their multi-generational or multi-fiduciary structure. More complex structures involving multiple trusts or business interests may cost more.

You can transfer cash, securities, real estate, business interests, intellectual property, and most other valuable assets into a Nevada trust. Real estate located in other states can also be held by the trust. For real estate investors, a common strategy is to hold each property in a separate LLC, with the Nevada trust owning the LLC membership interests.

A Nevada Directed Trust separates fiduciary responsibilities among multiple parties under NRS 163.553–163.557. Investment trust advisers manage assets, distribution trust advisers control payouts, a directed trustee handles administration, and a trust protector provides oversight. This bifurcated structure allows families to combine professional management with strategic control.

A trust protector is an oversight mechanism authorized under NRS 163.5553. The trust protector can remove and replace trustees, modify trust terms to adapt to changes in tax law, resolve ambiguities in the trust document, consent to distributions, and ensure the trust operates as the grantor intended. Trust protectors serve as a governance mechanism for long-term trusts.

Nevada allows trusts to continue for up to 365 years under its rule against perpetuities. This is one of the longest durations in the United States and enables multi-generational wealth preservation across nearly four centuries. Most other states limit trusts to 21 years after the death of the last measuring life, or 90-150 years under modern statutes.

Nevada has no state income tax, no corporate income tax, no gift tax, no generation-skipping transfer tax, no inheritance tax, and no estate tax. Trust income is completely exempt from state-level taxation regardless of where the grantor or beneficiaries reside. This allows trust assets to compound without state-level tax drag, maximizing long-term wealth accumulation.

Creditors have only two years from the date of transfer to challenge assets placed in a Nevada Asset Protection Trust. After two years, the assets are fully protected from creditor claims — even claims that arise after the transfer. This two-year window is one of the shortest limitation periods in the country and provides certainty and finality for trust creators.

For a Nevada Asset Protection Trust, you must have at least one Nevada resident or Nevada-licensed trust company as trustee. You can serve as a co-trustee in some cases, but the Nevada trustee must have significant control. For a Nevada Directed Trust, you may serve as an investment trust adviser or distribution trust adviser. For a standard revocable living trust, you can serve as your own trustee.

A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust created by one spouse for the benefit of the other. The grantor spouse uses their federal gift tax exemption to transfer assets into the trust, while the beneficiary spouse retains access to trust distributions. Under Nevada law, SLATs provide asset protection, no state income tax, and multi-generational wealth transfer potential.

Under NRS 165.135, Nevada trustees must provide accountings to beneficiaries at least annually. Each accounting must include schedules of principal additions and deductions, income received and disbursed, trust assets on hand with approximate market values, a statement of unpaid claims, and a summary of the account. Beneficiaries may petition the court to compel an accounting if the trustee fails to comply.

Trust assets are generally protected from beneficiaries' divorces if properly structured with a spendthrift clause. However, transfers made in anticipation of divorce may be challenged as fraudulent conveyances. For SLATs, the divorce of the grantor and beneficiary spouses may affect the beneficiary spouse's interest. Always consult an attorney for your specific situation.

A properly structured Nevada Asset Protection Trust is irrevocable — you cannot simply revoke it. However, Nevada law permits trust decanting (NRS 163.556), which allows a trustee to distribute assets from an existing trust into a new trust with different terms. Additionally, provisions can be built into the trust allowing modifications by a trust protector under NRS 163.5553.

Trust decanting is the power to distribute assets from an existing trust into a new trust with updated terms. Under NRS 163.556, Nevada trustees can decant trusts to adapt to changing tax laws, correct drafting errors, improve asset protection, or modernize administrative provisions — typically without court approval. This flexibility is a key advantage of Nevada trust law.

A Beneficiary Defective Inheritor's Trust (BDIT) is an irrevocable trust created by a third party where the beneficiary is treated as the owner for income tax purposes but not for creditor or estate tax purposes. This provides enhanced asset protection, tax-free trust growth (since the beneficiary pays income taxes), and estate tax exclusion.

No. Nevada has no estate tax and no inheritance tax. This is one of Nevada's most significant advantages for trust planning. Trust assets can grow and be transferred across generations without any state-level death tax, regardless of the trust's size.

A properly drafted Nevada trust continues to be governed by Nevada law even if you move to another state. The trust's situs remains in Nevada as long as you maintain a Nevada trustee. However, your new state of residence may attempt to tax the trust under certain circumstances, so consulting with qualified legal counsel is recommended.