There’s a common misunderstanding that an ordinary revocable living trust protects assets from creditors. The reality is that a trust must be ‘irrevocable’ to serve as effective asset protection. These types of trusts are also called ‘spendthrift trusts.’ A beneficiary, who receives the income or benefit of the property, does not readily have the power to transfer the trust property, revoke the trust, or modify the trust. The absence of control over the trust property is what provides the protective quality.
Nevada has the best laws in America for asset protection trusts regardless of where the assets are located so long as a few requirements are met. One of the trustees must be in Nevada and the trust needs to be administered here as well. Because Nevada is number one in asset protection laws you won’t have any problem finding a capable commercial trustee here. The Living Trust Source can refer you to a commercial trustee based on their experience and reputation.
If you’re considering a Nevada Asset Protection Trust don’t delay. The property must be added to the trust two (2) years before the creditor’s claim for it to be protected. In other words, set up the Nevada Asset Protection Trust today while the sky is blue.
The LivingTrustSource.com highlights the important distinction between the revocable and irrevocable trust. Only the later can be used to effectively fortify your nest egg.
Lead Attorney & Owner