INSIGHTS FROM FIRST FOUNDATION

A First Foundation Blog

How to Utilize a Nevada Asset Protection Trust to Safeguard Your Wealth

| 11/17/17 10:04 AM

Building a family legacy takes tenacity, vigor, and risk. It can take years of persistence and patience, withstanding all manner of storms. Even with the most robust planning, there are certain assets that – if not properly protected – can be subject to unfortunate events such as divorce, lawsuits, and creditors. With the amount of time, energy, and effort that has gone into building your family legacy, would it make sense to secure a portion of your wealth in a vault-like estate planning vehicle?

A Nevada Asset Protection Trust is an irrevocable trust established in the state of Nevada, and can be created for those residing in any state. These trusts are subject to very specific laws and limitations, which would allow a Grantor to be named as a beneficiary of the trust while still effectively protecting the assets of the trust from creditors.

As a powerful tool within your wealth plan, it can include language mirroring your will or revocable trust, ensuring that your wealth transition is private, consistent, and that you are able to maximize the state tax savings differential between Nevada and your home state. A Nevada Asset Protection Trust also serves as a more cost effective and safer alternative to offshore trusts.

Nevada is leading the nation in legislature surrounding Asset Protection, offering one of the most secure asset protection vehicles nationwide. For over 30 years, Nevada has offered this unique planning vehicle, which successfully allows a Grantor to create a trust that provides protection of assets while simultaneously offering growth and appreciation in a state with zero income tax. Much like a vault, a Nevada Asset Protection Trust offers itself to be a secure space used to store and protect your wealth from various unanticipated threats and predators. 

Nevada Asset Protection Trust Highlights:

  • A Nevada Trust Company, or state resident, must serve as Trustee
  • Assets placed into the Trust must remain for a period of two years before becoming exempt from creditors
  • Should be funded well before potential litigation ensues – with no inference of intent to defraud a creditor
  • Grantor must delegate control through various other parties named within the trust
  • While the Trust is Irrevocable, it is important to note that the beneficiaries of the trust can be changed at a later date if necessary

First Foundation Trust is a division of First Foundation Bank, Member FDIC, Equal Housing Lender

IMPORTANT DISCLOSURE INFORMATION    

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by First Foundation Advisors), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from First Foundation Advisors. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. First Foundation Advisors is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the First Foundation Advisors’ current written disclosure statement discussing our advisory services and fees is available for review upon request. Please Note: First Foundation Advisors does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to First Foundation Advisors’ web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Shelly O'Byrne, CFP®, CTFA
About the Author
Shelly O'Byrne, CFP®, CTFA
Shelly O’Byrne is the Director of Trust Services for First Foundation Bank. In this role she is responsible for growing the trust business, managing the team of trust officers and administrators, ensuring that trust clients are provided with exceptional customer service, and effectively managing risk within the trust function of the bank. Ms. O'Byrne has 20 years of experience in trust, estate and charitable trust management, working with affluent clients and their advisors. Prior to joining the firm, she worked at Bank of the West as Vice President and Senior Fiduciary Specialist managing their Newport Beach Trust office. She was the initial trust officer to join Family Wealth Advisors, their ultra-high net worth offering, and helped to build out the platform and offering, initially developing the client experience guidelines for the team. She also previously worked at Wells Fargo in trust administration and management. She currently serves as a member of the Orange County Estate Planning Council, North County Estate Planning Council and the Orange County Planned Giving Roundtable, where she is also a past board member. She holds a Bachelor of Science in Economics from the University of California Riverside and a Masters of Business Administration with an emphasis in Finance from California State University at Fullerton. She is a Certified Financial Planner, CFP, and a Certified Trust and Financial Advisor, CTFA. Read more
New Call-to-action