What Is a Nevada Asset Protection Trust?
A Nevada Asset Protection Trust (APT) is an irrevocable self-settled spendthrift trust established under Nevada's Spendthrift Trust Act of 1999. It protects the grantor's assets from civil lawsuits, bankruptcy, divorce, and other financial crises. Once the two-year statute of limitations expires, trust assets are secure from all creditors -- without exception.
As the grantor, you can choose your distribution trustee, set terms for fund distribution, and even serve as the trust's investment trustee while maintaining full asset protection.
Why Choose Nevada?
- No Exception Creditors: Nevada is one of only three DAPT states that recognizes no exception creditors. Once the two-year period expires, no creditor of any kind can reach trust assets -- including ex-spouses, child support claimants, and tort creditors.
- Two-Year Statute of Limitations: One of the shortest lookback periods among all DAPT states (compared to four years in Delaware and Alaska).
- No State Income Tax: Nevada imposes no state income tax on trust income, including capital gains, dividends, interest, and business income.
- 365-Year Dynasty Trust: Assets can remain in trust for up to 365 years, spanning more than a dozen generations for long-term wealth preservation.
- Directed Trust Framework: Trust functions can be separated among different fiduciaries, each with bifurcated liability, allowing you to retain influence over investments while preserving creditor protection.
- High Level of Control: A Nevada APT allows you to be the trust's beneficiary and investment trustee, giving you more flexibility than most irrevocable trusts.
Why Work with Blake?
Attorney Blake Harris has extensive experience establishing Nevada Asset Protection Trusts for clients across the United States. His background working at one of the largest wealth management firms in the country gives him deep insight into the needs of high-net-worth individuals seeking domestic trust solutions.
Blake can also recommend when a Nevada APT should be combined with offshore structures for maximum protection, tailoring a comprehensive plan to your specific situation.
"Blake Harris Law is the most qualified, experienced law firm to handle all your asset protection needs. I have known Blake for over a decade and he's one of the few people I trust unquestionably."Contact Blake Harris Law
-- Tyler Oldenburg, Jacksonville, FL
How Does a Nevada APT Work?
When you transfer property to a Nevada APT, you legally relinquish those assets. Once the two-year statute of limitations expires, trust property is safe from any creditor. The trust works in conjunction with an LLC for charging order protection -- in Nevada, a charging order is the judgment creditor's exclusive remedy.
A Nevada DAPT uses a spendthrift provision that prevents the grantor's creditors from accessing trust funds directly. All asset distributions must be made by an independent distribution trustee, creating the legal separation required for asset protection.
Directed Trust Structure
Nevada's directed trust framework divides trust functions among specialized fiduciaries:
- Investment Management: An investment advisor or committee directs investment decisions
- Distribution Authority: A distribution trustee controls when and how assets are distributed
- Administrative Functions: An administrative trustee handles record-keeping and tax filings
This structure allows you to retain influence over investments through a chosen advisor without compromising the trust's creditor protection.
Requirements to Create a Nevada APT
- The trust must be irrevocable (though it can still have significant flexibility)
- The trust must not require that income or principal pass automatically to the grantor
- At least one co-trustee must be a Nevada resident or a Nevada trust company
- The trust must not be established with fraudulent intentions
You do not need to be a Nevada resident to establish a Nevada APT. Even foreign nationals and international businesses can set up trusts in Nevada.
Nevada vs. Other DAPT States
- South Dakota: Unlimited dynasty trust perpetuity and favorable decanting laws, but recognizes exception creditors that Nevada does not.
- Delaware: Four-year lookback period (versus two years in Nevada). Community property trusts limited to state residents. Real estate trust limited to 110 years.
- Ohio: 1.5-year creditor statute of limitations, but recognizes exception creditors for spousal and child support.
- Alaska: Four-year statute of limitations. Allows unlimited dynasty trusts but has weaker confidentiality laws than Nevada.
The CES 2007 Trust Case
In 2025, the Delaware Court of Chancery upheld a domestic asset protection trust against a $14 million creditor challenge in the CES 2007 Trust case. While this case arose under Delaware law, it provides powerful precedent for all DAPT jurisdictions, including Nevada.
Nevada's DAPT statute is considered even more protective than Delaware's, with a shorter statute of limitations and no exception creditors -- reinforcing confidence that Nevada APTs will be upheld by courts when properly established.
Estate Tax Planning
The One Big Beautiful Bill Act (OBBBA) permanently established the $15 million federal estate tax exemption (approximately $30 million for married couples), eliminating the 2026 sunset. Nevada's combination of no state income tax, no exception creditors, a 365-year dynasty trust period, and the permanent estate tax exemption creates an unparalleled environment for long-term wealth planning.
Frequently Asked Questions
What is the role of a Trust Protector?
A trust protector is an independent third party who oversees the trust's administration. Nevada law grants trust protectors broad powers to supervise trustees, ensure compliance, and modify provisions when circumstances change.
How much does a Nevada APT cost?
Setting up a domestic trust costs less than offshore options. Exact costs depend on your plan's complexity and asset values. Contact Blake Harris Law for specific pricing information.
Is there anything to worry about?
The primary concern is fraudulent transfer risk. Your trust must be established and funded well before any legal disputes arise. Additionally, while Nevada's DAPT laws are among the strongest in the nation, working with an experienced attorney ensures your trust is properly structured to withstand scrutiny.