Forbes Gives Nevada the Highest Grade in Its Ranking of Domestic Asset Protection Trust States
July 26, 2011
In a recent article, Forbes.com ranked all of the states allowing self-settled spendthrift trusts. Nevada received the highest grade and was the only state to receive an A+. Indeed, the author of the article, Ashlea Ebeling, named Nevada as “the most debtor-friendly state.” In distinguishing Nevada from the other asset protection trust states including South Dakota, Alaska, and Delaware, the author pointed to Nevada’s much shorter statute of limitations. Nevada requires only a two-year waiting period before the trust assets are supposedly protected from future creditors. On the other hand, the waiting period for the other ranked asset protection states is three or four years. It would be highly frustrating to set up an asset protection trust outside of Nevada and get sued in the third or fourth year, while the assets would have been safe in Nevada.
In giving Nevada the highest grade, Forbes also focused on another significant advantage: as opposed to other states, Nevada protects your trust assets from pre-existing torts creditors, alimony, a divorcing spouse, and child support. As the article effectively states, “unlike other states, [Nevada] doesn’t give ex-spouses any special rights to get at the money for alimony, property settlements or even child support.”