Nevada is one of the few states that allow people to create trusts for individual assets, finances, and properties. As a person’s wealth accumulates over time, the need to protect that wealth rises as well. Wealthy individuals are more at risk of facing lawsuits, and others who may be looking to nab a piece of that person’s fortune. An NAPT can allow these individuals take advantage of all of the benefits, and keep their assets protected from lawsuits, creditors, and judgments.
You can choose which assets you would like to place in your NAPT, who will be the beneficiaries of your trust (you can choose yourself as a beneficiary), and how you wish the assets will be distributed. Money can still be distributed to others and be protected under the NAPT.
To be eligible, you must first meet these requirements:
Also, note that for the first two years after you have created a trust, any finances may still be left vulnerable to lawsuits and creditors. However, once that that period has passed, the doors close your assets will be protected moving forward from creditors seeking to collect, and judgments as well.
Another important item you should be aware of is that an NAPT is an irrevocable trust, and these can be one of the most difficult ones to work with. Normally, with an irrevocable trust, you would not allowed to terminate the trust when you choose or remove any of the assets that you had placed. However, the NAPT can give you the power to change the terms of distribution in the event that you pass away; this is called “power of appointment.”
NAPT’s are the type of trust where you need to take action right away so that you can receive the maximum protection possible. This is especially true if you are anticipating that someone may trying to make a claim on your assets, and you want to safeguard them from liability. Regardless, choosing to create an NAPT is a sound strategy for keeping your funds intact for the future.
Contact our Las Vegas trust lawyers at Bowen Dixon & Twitchell LLP to gain valuable legal insight for your NAPT.