Asset Protection FAQs

The FAQs are divided into three categories: Living TrustsAsset Protection, and Our Processes.  The Asset Protection FAQs are divided up into two sections: Asset Protection Trusts and LLCs.

Nevada Asset Protection Trusts (“NAPT”) Frequently Asked Questions

A Nevada Asset Protection Trust (“NAPT”) is unlike any other trust. Created under NRS 166, the trust protects assets from creditor attacks against you.  

It was only recently that Nevada state law changed to make it possible for the person who created the trust to also be the “managing trustee.” Now, when you set up a trust, you no longer have to lose control of your assets. You control them but you do not own them. When you set up the NAPT it is an empty shell. You fund it by moving your assets into the trust. Setting up bank accounts in the name of the trust, investment accounts, company interests, inheritance, real estate, vehicles, cash, jewelry, and artwork are all examples of things you can put into the trust.
There are 3 reasons why no other state can hold a candle to the Nevada.

  1. It has shorter time frames. There are only thirteen (14) states in the US that have asset protection trusts. Out of those, Nevada is the ONLY state that has a two (2) year statute of limitations. The other states have between three and six (3-6) years. (Well, Hawaii has a two (2) year window but you must pay taxes to use it).
  2. In Nevada there are no exception creditors. Even after the assets have been in the trust for the designated time frame, some states let certain creditors break through their asset protection trusts like divorcing spouses, child support, or pre-existing torts. Nevada does not.
  3. Nevada has a history of asset protection friendly jurisdiction. The trend has been that asset protection strategies have been very successful in this state.
No.  Let me ask you, who values $100,000 more: a millionaire or someone who only has $100,000? Even if you only have $100,000 it’s worth protecting. Never own assets that are naked…protect them with the armor of the trust.
As per NRS 166, no legal action can be brought against any asset transferred to the trust unless that action is brought within two years after the transfer of that asset to the trust.  Current creditors at the time of the transfer get an additional six months after discovery (which means recording) of the transfer if that is longer than two years. That means any predator or lawsuit, for example, foreclosure, creditors, divorce, nursing home, and probate (to name a few) is unable to hold claim to any asset that was transferred and recorded in the trust over two years prior.
Yes.  No one would want to use the trust if they couldn’t get the money or assets out. There are plenty of ways to get the money out.
No.  Actually, under the fraudulent conveyance statute any transfer (to an LLC, to your daughter, to your church) can be considered to be in violation of the act. Your creditors have at least four years to prove it’s fraudulent unless you have a trust—then they only have two years.
The common irrevocable trust is difficult to change and manage. The NAPT is an irrevocable trust but is far from the traditional irrevocable trust. Changes can be made to your Nevada trust. You can change your trustees, your beneficiaries, your distribution, your assets inside the trust, etc. We can show you how this is accomplished by using a Trust Protector.
Yes.  Nevada law does not specify prohibitions on the grantor (the person setting up the trust) or beneficiary from serving as the trustee.  However, it is preferred to have another person serve as trustee.  We call this type of trustee the Managing Trustee to distinguish it from the Distribution Trustee.
We all know that we can be sued by anyone, at any time, for any reason. Even if you may not think you have assets to protect, we can look at your situation and recommend whether or not your assets need to be protected.

“Naked assets” are those assets that are not protected by state law. Some examples of exempt assets that are protected include retirement plans, life insurance, annuities, and your primary residence (if homesteaded and depending on the homestead laws in your state). For a full list of assets that are exempt from execution in Nevada CLICK HERE.  The day after the asset is transferred into the trust, it belongs to the trust. You no longer own it. If someone were to ask you what assets you own, you would truthfully and lawfully be able to exclude that asset.

We also sometimes refer to the distribution trustee as the blocker trustee. The blocker trustee is what makes this trust so impenetrable. He or she is like the guard protecting your castle.

Your blocker trustee should be someone you trust. However, this trustee doesn’t need to know what is inside your trust or have any power over the assets inside. The blocker trustee authorizes your withdrawals from the trust and keeps creditors away from your assets. At any point in time, you may fire your blocker trustee and designate someone new.
These types of trusts go for $6,000 – $10,000 in the community among those attorneys here in Nevada who know what they’re doing.  We do have a version for $6,500; however, if you chose to keep the design simple, we have plans for $2,500 plus $170 recording fee.  Why can we charge less?  If you keep it simple, there is less planning and liability for us.  We pass that savings on to you.  At that price, Middle America can now have the protection of the Mega-Wealthy.
Yes.  Although the trust is irrevocable, with the use of trust protectors, nearly anything about the trust can be changed.
No.  Although you need to have an independent trustee, that person is limited (handcuffed) and has no authority to manage your assets.  He/she has no access to the assets in the trust.
No.  Nevada Asset Protection Trusts (NAPTs) are only necessary if you want additional protection from lawsuits.
No.  Transfers to LLCs, companies or other people require at least FOUR years before the transfers are protected from your creditors.
Yes.  As long as one of the trustees is a Nevada resident, bank or trust company the NAPT is available to you. If you don’t know someone in Nevada, we can serve as the Administrate Trustee for $250 per year (an unbelievable bargain).
No.  You created the living trust to protect against probate not creditors. Only the trust created under NRS 166 protects from creditors as well as probate.
If you follow our guidelines, the maximum waiting period should be 2 years from the date you transfer assets to the NAPT.
Yes.  You may not place all of your assets in the NAPT; therefore, you will have assets in your name that will go through probate when you die or guardianship if you lose your mind.  The assets you don’t place in the NAPT belong in the Living Trust.
The real question is why would you want to take it all out?  It is safe in there! However, if you ever decide you no longer want the use of the trust, you simply write yourself a check from the trust bank account or deed the property and companies back into your name or your living trust. You should already have on file an authorization form from the distribution trustee. Just make sure that the authorization amount is raised.  You can take anything out of your trust any time you want so long as you’re not under duress and the distribution trustee has authorized it. The trust does not dissolve but is left as an empty shell.  

If you ever want to use the trust again, you can re-fund it at any point. Upon transfer of each asset back into the trust, however, a new two (2) year period begins (and 6-month period).
Step 1: Pre-appointment
.  Your first consultation will be complimentary if you are willing to do two (2) things to help us prepare for your appointment. (1) We will email you a link to a short video that you need to watch and (2) we email you a confidential questionnaire needs to be completed and returned two (2) days prior to your appointment.

Step 2: Consultation and Design.  
We are accustomed to in-office or phone appointments, whichever you prefer. You will be meeting with Gary Fales and no other attorney. We do ask that your spouse or significant other be present. Your meeting will take approximately 30 minutes.  If you decide to hire us, Gary will need another 30 minutes to being your design so we ask that you plan for about an hour appointment.

Step 3: Sign the trust
.  The drafting process typically takes two (2) weeks. Upon completion, you will meet with our Client Concierge to sign your trust or we will mail it to you. If you have any further questions she will be your liaison to Gary and to the rest of the legal team. In the case of any specific questions for Gary, she will relay his counsel or set an appointment for you to speak with him directly.

  If you need to speak with Gary, just ask.

Step 4: Fund the trust
.  Once the trust is signed, it is ready for the assets to be transferred to it.  It is your responsibility to transfer assets to the trust. Our Funding Coordinator is here to help you with any specific questions about transferring assets into the trust.

  If you want us to transfer an asset, we can help you assist you for a nominal fee.

Step 5: Record the transfers to the trust.  When an asset is transferred into the trust, it needs to be recorded. You will work with our Funding Coordinator to record the assets in the trust. After providing our office with the necessary information we will be able to record the assets in any county in Nevada if the assets are located there.  Our Membership Maintenance Program is designed to help you with everything you need after you set up the trust. To read more about the Membership Maintenance Program make sure you read the section entitled “How do we differ from other firms” or link directly to a description of the program here.

Limited Liability Company (“LLC”) Frequently Asked Questions

Coming Soon

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