Effective October 1, 1999, the Nevada statutes have been amended to allow a grantor to set up an asset protected trust in which the grantor is a permissible beneficiary. A limited number of other states, such as Alaska, Delaware, Rhode Island, South Dakota and Utah, have set up similar laws. However, in each of those states (except Utah), the grantor must wait four years (three years in Utah) to be asset protected. In Nevada, the grantor is protected after only two years. Therefore, it would be silly to set the trust up in one of the other states - unless the grantor resides there. If you are an advisor and you advise your client to use a state other than Nevada, then how do you explain your advise if the client gets sued in year three or four???
Be sure to read "The Nevada Asset Protection Trust," Lawyers Weekly USA (Jan. 2003), authored by Steven J. Oshins.
For related media article, read:
* "Estate-planning lawyer succeeds by helping clients protect their wealth," Las Vegas Review Journal, March 27, 2006
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