Nevada Trusts: Modern Estate Planning

The trust-friendly jurisdiction of the State of Nevada may offer strategic advantages that may not be available in some other states. High-net-worth families and individuals may find Nevada to be a safe haven with regards to asset protection, wealth accumulation and attractive income tax advantages. These advantages include:

  • Minimization or Elimination of Taxes
  • Wealth Enhancement with Generational Skipping Trusts
  • Asset Protection
  • Self-Settled Spendthrift Trusts
  • Flexibility of Investments

Wittman Capital Management is an established Registered Investment Advisory firm located in Las Vegas to better serve high-net worth families and individuals who want to establish a trust in Nevada. We are a team of estate and investment professionals who specialize in asset protection, wealth preservation and reduction, elimination or deferral of estate and income taxes.

MINIMIZATION OR ELIMINATION OF TAXES ON TRUST ASSETS

Nevada has no state or corporate income tax, therefore income generated from a trust might not be subject to income taxes on a state level given several factors are met. This can help reduce the erosion of trust assets by tax rates. Trust income distributed by a trustee to beneficiaries is also not taxed by the state of Nevada. Nevada does not assess any tax on the value of intangible personal property held in a trust, such as life insurance, and annuity contracts, investments including public and private securities and partnership interests.

DYNASTY TRUSTS – WEALTH ENHANCEMENT ADVANTAGE

Nevada is one of the few states that has extended its rule against perpetuities to 365 years for all property held in trust. If structured properly, assets transferred to a generational skipping trust can benefit generations of the grantor’s descendants without incurring additional gift tax, estate tax or generation-skipping transfer tax. Commonly known as a Dynasty Trust.

PRIVACY

Nevada courts have the option to keep all actions under seal to protect the privacy of the grantor and the beneficiaries.

DOMESTIC ASSET PROTECTION TRUST

Effective estate planning should include strategies for protecting your assets from unforeseen creditors and unexpected claims. One advantage of Nevada law is the allowance of individuals to create self-settled trusts that, under certain circumstances, may protect their assets from potential creditors. Nevada is one of only a limited number of states that allow a person to create an asset protection trust for oneself. Nevada law also has a shorter window in which a creditor can make a claim. Anyone interested in creating an asset protection trust should consult with their legal and tax advisors.

Properly structuring a Nevada asset protection trust allows a client to be a beneficiary of the trust and retain certain powers over the trust. These powers include the power to manage the trust assets.

FLEXIBlLITY OF INVESTMENTS

Nevada trust law has recognized the ability to delegate the investment responsibility in a trust arrangement. Unlike many jurisdictions, Nevada law allows trustees to determine an appropriate and prudent mix of investments and the freedom to invest in higher risk assets while taking into account such factors as current market conditions, tax consequences, risks, expenses, time horizon, liquidity needs, beneficiaries’ ages and other needs of current and future beneficiaries. Wittman Capital Management works closely with clients to understand their goals and priorities and to build solutions to help them meet their overall estate and financial objectives.

FOR MORE INFORMATION

We invite you to contact us to discuss how Wittman Capital Management and our Nevada professionals can help you manage your wealth. You should also consult your legal or tax advisors to discuss whether establishing a trust in Nevada is appropriate for your situation. To find the office nearest you, call 702.588.4727 or visit WittmanCapital.com.

 

IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment converns taxmatters, it is not indended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. LEGAL, INVESTMENT AND TAX NOTICE: This information is not indended to be and should not be treated as legal advice, investment advice or tax advice. Clients should under no circumstances rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors.