Asset Preservation Trusts


Without Asset Protection you could suddenly lose everything you've worked for. Nine out of 10 lawsuits in the world are filed in the United States. There is a new lawsuit filed every 30 seconds. If you own a business or practice a profession, you have a 1 in 3 chance of being named a Defendant in a lawsuit in the next year. Without an asset preservation plan, most of your estate could go to lawyers or the government, not your heirs.

Due to the tragic events of September 11, however, increased scrutiny has been placed on the offshore banking institutions and offshore trust jurisdictions that many Americans used to protect their assets. A Nevada Asset Preservation Trust (“NAPT”) provides asset protection and financial privacy without having to leave the country.
A NAPT is a “spendthrift trust” that permits you and any other parties you choose to be its beneficiaries. A “spendthrift trust” is an irrevocable trust whose assets cannot be demanded by a beneficiary or attached or garnished by a beneficiary’s creditors.

A NAPT is a powerful tool that can provide protection from creditors while still allowing the Settlor some benefit and control of the trust assets.  NAPTs are appropriate for a wide range of people such as professionals, officers, directors, fiduciaries, real estate owners with exposure to legal liability, and business owners.  However, it is important to remember that NAPTs or any other asset protection tool are only effective as protection against future claims and cannot be used to hide assets from existing creditors or claims.

In the United States today, there are only four states that allow the settlor of a trust to establish a trust in which the settlor is a permissible beneficiary, Nevada, Delaware, Alaska and Rhode Island. However, only Nevada law provides one major advantage that is so preferable to the less favorable laws of Alaska, Delaware or Rhode Island, that it is difficult to justify establishing a self-settled spendthrift trust in one of those jurisdictions.  This advantage lies in the shorter period of time required under Nevada law between the date an asset is transferred to the trust and the date the asset is protected from the creditors of the settlor.

In particular, the settlor of a Nevada Asset Preservation Trust is protected if the trust is irrevocable, does not require that any part of the income or principal of the trust be distributed to the settlor, and it's creation was not intended to hinder, delay or defraud known creditors.

Under Nevada law, in order to set up a NAPT there must be a Nevada Trustee that is a Nevada resident or a trust company or a bank with trust powers that is qualified to do business in Nevada. Summit Trust Company is authorized to act as a trustee under the laws of Nevada and whose activities are supervised by the Nevada Financial Institutions Division. 

Summit Trust Company:

  • Provides fiduciary services to take advantage of the favorable Nevada Trust Law
  • Maintains custody of trust assets and records of trust activity in Nevada
  • Has the expertise to guide you through the process of creating your own Nevada Trust to protect your assets.
Nevada Business Planning Corp.

Is our affiliate that provides consultation services on establishing corporate structures to take advantage of Nevada laws regarding privacy and taxation.