Asset Protection — Nevada Style

Neil Schoenblum (Senior Trust Officer, Provident Trust Group)has recently published his article entitled Asset Protection in the Desert: Nevada’s Rules, Recent Developments, and Advantages.

Here is the introduction to his article: 

In April 1997, Alaska became the first state to enact legislation allowing asset protection trusts. Shortly thereafter, a few other states followed suit, including Nevada. Indeed, on October 1, 1999, the asset protection trust migrated to the desert when Chapter 166 of the Nevada Revised Statutes (NRS) was amended to enable a settlor to be a discretionary beneficiary of the trust and yet assure protection of trust assets from claims of the settlor’s creditors.

Upon stepping onto the asset protection stage, Nevada immediately distinguished itself from the rest of the pack on account of its unique statutory provisions. Since then, the Nevada legislature has routinely updated its self-settled spendthrift laws, which has led to Nevada being recognized as a leading asset protection state along with Alaska, South Dakota, and Delaware (sometimes referred to as the “Big Four” ). However, Nevada’s favorable statutory features, coupled with a legislature consistently committed to cutting-edge, progressive asset protection and trust laws, arguably make Nevada the premier domestic asset protection jurisdiction.