Nevada is one of the best states in the country where people can protect their assets. And they have one of the best tools at their disposal: the Nevada Asset Protection Trust (NAPT). Solid candidates for such a trust are people who often face lawsuits, and this group may include physicians, attorneys, architects, real estate developers and business owners.
An NAPT is an irrevocable trust that you create in order to preserve and protect your personal assets from malicious lawsuits, creditors and even from divorce dealings. It is an effective tool. As long as your assets have been in the trust for at least two years, no legal claims can be taken against any of them. But what type of assets can you place in an NAPT?
Your business, home and securities
Protecting your assets is essential as you never know what type of financial and legal challenges will surface. With an NAPT, you protect your valuable assets from unexpected liabilities. And you also can rely on this tool as an instrumental aspect of estate planning.
Here are some of the personal assets that you can protect by creating an NAPT:
- Your home and other real estate investments
- Financial investments, mutual funds and cash
- Securities such as stocks and bonds
- Valuable collections such as fine art and family heirlooms
- Personal property such as jewelry
- Your business such as a limited liability company
- Rental properties owned by you
Remember, once you transfer these assets into this irrevocable trust, you no longer own them. The trust owns these assets, which are overseen by a trustee appointed by you. And while you are a beneficiary of the trust, you cannot authorize the trustee regarding distributions.