In 1999, Nevada became one of the first states to enact legislation allowing self-settled spendthrift trusts that provide asset protection for settlors. Since then, the Nevada legislature has consistently passed favorable, progressive asset protection and trust laws (including during the … Continue reading
The Trust Advisor Blog released its 2011 rankings of the most trust-friendly states. For the second year in a row, Nevada was included in Tier 1 and named as a top trust state. Indeed, Nevada was one of only four states to receive this recognition. The blog post distinguishes these four states as “the Big Four” and comments that they “offer just about everything on the menu.”
In ranking the states, the Trust Advisor Blog looked at several factors, including: whether the state has a directed trust statute; dynasty trust ability; state income tax; and, in particular, whether the state allows asset protection trusts. Regarding asset protection, the blog post makes a very interesting comment: “the ability to provide a high level of asset protection may emerge as the most important factor in how the various more-or-less trust-friendly states differentiate themselves in 2011.” If asset protection does become an emphasis, this trend would help Nevada retain its position as a best state for trusts due to its premier self-settled spendthrift trust laws. Indeed, Forbes.com ranked all of the states allowing self-settled spendthrift trusts and gave Nevada the highest grade.
The Trust Advisor Blog published its 2010 rankings of the best states for trusts. The states are separated into three tiers with Tier 1 being the best, Tier 2 being good and Tier 3 being marginal. Nevada is one of only four states included in Tier 1 as a best state to set up a trust.
In giving Nevada such a high ranking, the Trust Advisor Blog relied on several of the state’s advantages, including: its directed trust and asset protection trust statutes; its 365-year dynasty trust law; and no state income tax. The blog post also quotes Steven J. Oshins, an estate planning attorney as well as the author of several Nevada trust laws, who comments: “Nevada now offers everything Delaware offers and more because of the combination of its 365-year dynasty trust law, two-year statute of limitations on self settled asset protection trusts and no taxation.”