Many people wouldn’t think of Nevada as the most popular state in the country (and known more globally) for family trusts. There’s been more focus on the advantages offered by Nevada recently when news got out of battles over the Murdoch Family Trust, which is here in Nevada. Rupert Murdoch is reportedly trying to modify the irrevocable trust that splits shares in Fox Corp. and News Corp. as well as other assets among four children so that everything goes to the son he’s named to succeed him in the family business.
The Murdochs aren’t the only ones who have chosen to establish a family asset-protection trust in Nevada. There are a lot of family fortunes in Nevada trusts – cumulatively worth billions of dollars. While there’s no legal requirement that a settlor live in Nevada to establish a trust here, most people with family trusts in the state at least own property or have business interests here.
The reasons why Nevada has become the go-to state for family trusts are worth knowing about even for those whose family assets can’t begin to rival the Murdochs’. Let’s look at a few:
Privacy
There are multiple provisions in the law that protect the privacy of these trusts. For example, last year, a law was enacted that allows estate planning attorneys to keep the names of trust settlors (those who create a trust) and beneficiaries as well as the trust name confidential without having to get a court order to do so. These are often known as “silent” trusts, and only a handful of states have them.
Tax advantages
Nevada offers other advantages for those who need to set up an asset-planning trust. It doesn’t have a state or corporate income tax, for example. It’s also among the states with no inheritance tax. Therefore, assets in these trusts can increase more significantly than if a portion had to go to these taxes.
Broad protection from creditors
Nevada trusts also offer strong protections from creditors. This includes protections from plaintiffs who may prevail in a lawsuit against a beneficiary. They also protect assets from going to a spouse in a divorce.
If you’re considering an asset-protection trust to help protect and grow your family’s assets, it’s smart to learn more about how they work. Getting sound legal guidance is a good place to start.