What is Estate Planning?
What is an "Estate"?
Your "estate" consists of all property owned by you at the time of your death, including :
How Can an Estate Plan Help?
Regardless of your age, or the size and complexity of your estate, an estate plan can accomplish the following:
NEVADA DOMESTIC ASSET PROTECTION TRUSTS [“DAPT”]
On October 1, 1999, Nevada State Law made “Self-Settled Spendthrift Trusts” a viable option for asset protection through the Spendthrift Trust Act of Nevada (“Act”). The Domestic Asset Protection Trust (“DAPT”) permits an entity to protect its assets from attack by potential future creditors while concurrently maintaining limited control over and beneficial use of such assets.
Nevada law provides that the enforceability of a “self-settled” spendthrift trust, whether created in or outside of Nevada, will be respected so long as: (1) all or a part of the property transferred into the trust is located in Nevada; (2) the declared domicile of the trust’s settlor is in Nevada; or (3) all or part of the trust’s administration (including the preparation of income tax returns and maintaining trust records or documents) is performed in Nevada by a qualified Nevada trustee.
The Nevada Revised Statutes, Chapter 166, state that a Nevada DAPT must have as one of its trustees either a: natural person who resides in and has his domicile in Nevada; legally organized trust company that maintains an office in Nevada; or a legally organized bank that maintains an office in Nevada, and possesses and exercises trust powers. Further, the Act specifies that a Nevada DAPT must be irrevocable; must not be intended to hinder, delay or defraud known creditors; and all distributions to the settlor must be discretionary.
The Act sets a two-year statute of limitations for fraudulent conveyance claims and gives existing creditors six months to file a complaint after learning of the transfer, if longer. Notably, any conveyance could potentially be set aside by a court, if made within the two-year time period after the DAPT has been formed. To date, no case law exists testing the viability of DAPTs as an asset protection tool.
Possible advantages of using a Nevada DAPT include protecting: gifts and inheritances; assets of minors, spendthrifts and other vulnerable persons; against failure of future ventures; against attack in divorce proceedings; against the collection of personal injury awards; and against frivolous lawsuits. For further information on either asset protection or estate planning, please call Alikhan Law Office, LLC, at (702) 374-6619 to schedule a confidential consultation.
Disclaimer :The information presented in the article above is general information only. It should not be construed to be legal advice and does not create a lawyer/client relationship.