Nevada sets the benchmark in asset protection and privacy

While Nevada refines asset protection and privacy laws, other states are scrambling to follow suit.

Last month, the New York Times quoted me as they highlighted the many benefits of Nevada trust laws in the context of the Panama Papers and related concerns regarding tax compliance outside of the USA. Unfortunately, the typical wishes for family and financial privacy are, incorrectly, equated with tax-evasion in the popular press.

The vast majority of people establishing trusts in Nevada are taxpaying, honest, ethical people who are just seeking privacy for their financial affairs. Nevada is not a home for tax evasion or other financial fraud. The trust companies and financial institutions in our state adhere to very strict and regularly updated state and federal standards regarding illegal financial activities.

Alliance Trust Company complies with all reporting and documentation standards of both State and Federal agencies.

For example, the USA Patriot Act mandates financial institutions to adhere to strict reporting processes for all persons opening or amending existing accounts.

USA Patriot Act requirements for financial institutions

  • To help prevent money-laundering and funding terrorist activities, financial institutions must obtain, verify, and record identity information from all account holders. Both new and existing clients must give identification information.
  • Account holders must provide their names, both physical and mailing addresses, date of birth, and other documentation verifying their identities.
  • Government issued identification (e.g. driver’s license) and identification documents are copied and recorded for all account holders.

While it is true that Nevada places a higher standard on personal privacy than many states, Nevada has no interest in “hiding” funds. Nevada attracts legitimate funds from around the US and globe because our state has designed very attractive and wealth-friendly legislation.

Setting the Standard

For nearly two decades, Nevada has been enacting and developing a situs conducive to asset protection and just as importantly, privacy. In October of 1999, the Nevada legislature allowed for the creation of Nevada self-settled spendthrift trusts, more commonly referred to as Nevada Asset Protection Trusts. Combined with the excellent privacy features of Nevada’s LLC laws, it is very challenging to find a better place to structure your family’s assets.

Typical spendthrift trusts shield beneficiaries of the trust from potential creditors protecting the assets held in trust. Nevada takes this protection a few steps further.

What you need to know about Nevada Asset Protection Trusts:

  • Nevada Asset Protection Trust is self-settled. The self-settled piece of Nevada Asset Protection grants the settlor of the trust the same protections as the beneficiaries of the trust.
  • Nevada offers real protection. Nevada Asset Protection Trusts protect assets from all creditors including current and former family members and tort creditors (creditors with priority to collect).
  • Nevada offers a shorter statute of limitations than most states. Nevada Asset Protection Trusts carry a two-year statute of limitation, half of the four-year term most states offer. Moreover, once assets are in the trust, creditors must prove fraudulent or legal violation to collect even during the seasoning period.
  • Nevada Asset Protection Trusts are irrevocable, but… Nevada’s asset protection laws allow the trust settlor to make decisions regarding distribution, to serve as a co-trustee, and other powers related to managing the Nevada Asset Protection Trust. There is greater flexibility with these trusts than many people realize.
  • Nevada residency is not required. As long as you establish your trust in Nevada, you may live anywhere–in the U.S. or abroad–and take advantage of the many benefits Nevada trust law provides families.

Many states are chasing Nevada hoping to gain traction with the nation’s wealthy. However, we get it: the playing field doesn’t seem level for trust companies across the country.

Nevada carries no state income tax. Nor does Nevada have corporate income taxes. Investors across the country and the globe may enjoy the advantages of Nevada’s trust situs as long as investors establish their trusts in Nevada. Nevada has the best domestic asset protection laws in the country. Moreover, Nevada lawfully protects personal privacy.

Nevada will continue fortifying nearly 20 years of legislation that make Nevada the clear frontrunner in domestic asset protection and wealth management.

Alliance Trust Company is happy to answer any questions and address any concerns regarding Nevada’s privacy laws.

Alliance Trust Company of Nevada in The Economist

The Economist

Typically well-reasoned and published since 1843, many believe that the Economist is the finest English-print magazine in the world.  The magazine tackles complex global issues with a balance and perspective that only a 170+ year history can provide.  That is why, in the context of the media fury surrounding the “Panama Papers,” that the Economist’s suggestion to publish individual global tax returns (April 9th edition) deserved to be publically questioned.  To the credit of the publication, Gregory Crawford’s letter to the Editor is published in the April 30th print edition.  In the letter, the President of Alliance Trust argues that no benefit will come from such a disclosure plan or the OCED’s related “Common Reporting Standards.”  The impact of sharing detailed personal financial information with rogue governments around the world will not increase U.S. tax revenues by a cent.  In fact, the only meaningful outcome of the proposals is to violate basic personal privacy significantly increase the physical and financial risk to law-abiding citizens and their families around the world.

The Government of Kazakhstan knows my retirement account balance?

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The New York Times “Room for Debate” opinion pages recently asked Gregory Crawford, The President of Alliance Trust Company in Reno to comment on the Panama Papers and the advantages of and lawful usages of shell companies.  In this piece, Greg notes that the vast majority of these companies are used legally, providing a layer of security and privacy for international families in an increasingly dangerous world.

The interest of non-US citizens using foreign grantor trusts in Nevada is increasing dramatically.  Many countries are now recklessly sharing highly-sensitive and otherwise confidential individual financial information with rogue governments around the world under the OCED’s “Common Reporting Standards.” This program, which thankfully the United States is not participating in, gathers and automatically exchanges individual  names, addresses, tax identification numbers, and financial account balances with the governments of Azerbaijan, Cameroon, China, Georgia, Indonesia, Kazakhstan, the Philippines, Russia, Senegal, Tunisia, and Uganda, to name a few.  Where the information might go from there, no one knows.   Many of these countries have Horrific human rights records and serious corruption issues.  Automatically sharing this data will undoubtedly expose law-abiding individuals to the risk of extortion, kidnapping or worse.  The United States should remain proudly “non-compliant” with the CRS and its efforts to violate personal privacy.

it is worth noting that the State of Nevada offers excellent privacy provisions when establishing business entities such as LLCs, and there are options for the US and non-US citizens to keep their financial affairs private in trust.  Please contact Alliance Trust for more information at 775-297-4000.

 

Alliance Presentations in San Diego – Recap of the Gathering

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Last month Alliance Trust presented at the Southern California Institute’s annual “Gathering” of elite advisors from around the country in San Diego.  The topics of the two-day seminar included a panel debating the best family trust jurisdictions, and various methods and strategies to minimize and reduce estate, state and federal income taxes.  Advisors discussed asset protection trusts and other Nevada trust options, with case studies on how they work in practice.  As a Nevada Trust Company, Alliance Trust added insight and expertise on these topics from the perspective of a trustee.  Nevada is considered to have the best trust laws in the country, providing families valuable asset protection, flexibility for planning options and tax minimization for generations.  for more information on Nevada Trusts, please call Greg Crawford at Alliance Trust in Reno at 775-297-4684.

Awareness of NING Trusts Growing Nationally

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Nevada Incomplete Non-Grantor Trusts (or, “NINGs”) are growing in popularity and usage across the country.  NINGs provide the grantor of the trust asset protection and the potential to minimize local and state income taxes on investable/intangible assets.  As this NASDAQ.com Article on NINGS, these types of trusts are not for everyone.

However, a family living in a high-income tax state with significant taxable income and appreciated investments (or investments expected to appreciate) can benefit from a NING. This is just one of many Nevada trust planning strategies that makes Nevada the Asset Protection Trust Rankings   If you are interested in learning more about NINGs, please read this Article by attorney Gordon Schaller and call Greg Crawford at Alliance Trust Company in Reno at 775-297-4684.

Why Sand Hill Road Uses Nevada Trust Strategies

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Alliance Trust Company of Nevada spends significant time in Silicon Valley.  Our clients range from early stage Angel investors, the founders of many fast-growing technology firms, and the partners of some of the most prestigious venture capital firms in the world.  Why are so many people connected with Sand Hill Road using Nevada Trust strategies?  In a word: Flexibility.

Nevada offers exclusive options within its trust and estate laws, and you don’t have to be a Nevada resident to establish and benefit from a Nevada Trust for generations to come.

Simply put, Nevada offers flexibility around common asset protection, tax-minimization, and dynasty provisions that have many around the country recommending Nevada as the best state in the country for trusts.  Even Business Week magazine recently took notice, putting Reno on the cover for its trust and estates activity.

Interested in learning more?  Call Greg Crawford, President of Alliance Trust in Reno at 775-297-4684.

Bloomberg Businessweek Highlights Reno for Trust Benefits

Business Week Cover

The cover story of this week’s Bloomberg Businessweek Magazine highlights the successful effort of the State of Nevada, Reno in particular, in attracting assets from affluent international families.

The attraction to Northern Nevada includes:

-Nevada’s favorable trust and estate laws

-Experienced attorneys in Reno

-Excellent CPAs and trust companies in Reno

-The overall stability of the US legal system

Privacy and tax concerns also impact the decision to move assets from Europe to Reno.  The United States, as well as the money centers of Europe, recognize Nevada as the best jurisdiction for trusts.  The growth of the Nevada Trust industry since 1999 has been nothing short of remarkable.  A Bloomberg video report and radio report (begins at the 1:34 minute mark) are also available.

Alliance Trust Company of Nevada is proud to be a key player in Reno’s trust industry development since 2005.  For information on how Dynasty Trusts, self-settled trusts, and Nevada’s excellent corporate laws may help you achieve your family’s goals, please call Greg Crawford, President of Alliance Trust Company in Reno at 775-297-4684.

Alliance Trust Proud to Participate in Prestigious UCLA Law Panel

UCLA STEP Asset Protection

Gregory E. Crawford, TEP, President of Alliance Trust Company of Nevada recently participated in a 90-minute discussion panel covering the topics of asset protection planning and the impact of the Uniform Voidable Transfer Act (UVTA).  The panel was moderated by Professor Jerry Hesch (ACTEC Fellow), and included nationally-recognized attorneys Jeffery M. Verdon and John R. Garland, as well as Neal Rubin, Managing Director, International Custody & Asset Protection Solutions of City National Rochdale.  Nevada was highlighted by the panel as one of the best jurisdictions in the United States and world for estate planning.  The UCLA Law School STEP Conference is in its fifth year and attracts hundreds of trust and estate professionals from around the world to Newport Beach, CA each January.  For more information, please review the conference details or call Greg Crawford in Reno at 775-297-4684.

Hilary Clinton calls for Higher Estate Taxes

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Despite government assurances that the recent estate tax regulations were “permanent,” nothing is really forever or permanent in Washington DC.  Democratic front-runner Hilary Clinton has recently proposed on the campaign trail a higher effective estate tax rate, lowering the estate tax exemption amount by more than $2 million per person, and increasing the marginal tax rate on taxable estates from 40 to 45%.  It is estimated that this will double the annual number of households subject to the tax, raising $400 to $500 billion over the next decade.  Nevada trust strategies can be an excellent estate tax “freezing” technique to reduce or eliminate estate tax.  Please call Greg Crawford, President of Alliance Trust Company in Reno at 775-297-4684.

Children Facing Challenges and Your Estate Plan – You Have Options

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For a family dealing with children with handicaps or other challenges, the journey does end when the child turns age 18.  Many parents and families worry about how their adult children will fare after the parents pass away.  Fortunately,  a well crafted family estate plan can provide solutions to these problems.  Children with medical difficulties and handicaps may need a special needs trust to preserve eligibility for government aid and other programs that could be jeopardized by a sudden influx of wealth. For children dealing with substance abuse, a special purpose trust could be the answer.  In some cases, a family may consider disinheriting a child to prevent an inheritance from furthering a destructive lifestyle.  While this is an option, special legal care is needed to ensure that money does not fall into the wrong hands and situation.  Nevada is considered the best state in the country for estate planning, and may offer options and flexibility for your family’s estate plan that your home state does not.  And you do not need to be a resident of Nevada to establish and benefit from a Nevada trust.  Contact Philip Brown at Alliance Trust in Reno at 775-297-4277 to learn more about the advantages of a Nevada Trust.

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