What is a tax-deferred exchange?
1031 exchange is one of the few techniques available to postpone or potentially eliminate taxes due on the sale of qualifying properties. Talk to our 1031 Exchange Tax consultant for more information.
Nevada Asset Protection
What is a Nevada Asset Protection Trust (NAPT)?
A NAPT, or a Nevada self-settled spendthrift trust, is an irrevocable trust under Nevada's special law that permits a settlor to set up a trust for his or her own benefit that can generally protect assets from the settlor's creditors beginning two years after transfer of the particular assets to the trustee.
Traditionally, self-settled spendthrift trusts were not allowed, but now a growing number of states (although still a minority), including Nevada, permit them. Indeed, in 1999, Nevada became one of the first states to enact legislation allowing self-settled spendthrift trusts that provide asset protection for settlors.
While Nevada law does not permit an individual to hide assets from existing creditors or otherwise make a fraudulent conveyance, it generally allows for the protection of assets of from future creditors not reasonably anticipated at the time of the transfer. Therefore, it is critical that planning be done before liability is incurred rather than after.
In 2010, Forbes.com ranked all states permitting domestic asset protection trusts. Nevada was the only state to receive an A+. In giving Nevada the highest grade, Forbes.com declared that Nevada is the "most debtor-friendly state."
| For a comparison of Nevada's highest ranking versus other states, here are the rest of the grades from Forbes.com: | ||
|
|
|
For a complete ranking chart, please click here.