New Trust Company Laws in Nevada

As of October 1st, Nevada’s public trust companies are subject to stricter licensing requirements, such as maintaining a physical office in the state, staffing a satisfactory Nevada employee, and keeping true copies of business records available for inspection. But the biggest change requires public trust companies to post $1 million in capital, with a graduated compliance plan for companies already in existence.

The new law was two years in the making.  It does not apply to private family trust companies.  A separate law provides for optional licensure under relaxed standards for these private companies.

For an in depth discussion of the legislative history of Nevada’s new law, see Jerry Cooper, Nevada’s New Trust Company Rules Set to Begin October 1st, Trust Advisor Blog, Sept. 25, 2009.