Take Advantage of Nevada’s Favorable Trust Laws
In the past, wealthy international families and businesses looked to Europe and the islands for asset protection – now they turn to Nevada.
Due to new international disclosure requirements, Switzerland, the Bahamas, and the British Virgin Islands no longer offer the privacies that historically attracted international wealth. However, Nevada is exempt from these new international disclosure agreements, providing a level of privacy that’s increasingly rare.
The OECD’s “Common Reporting Standards” automatically collect and share private information such as individual names, addresses, tax identification numbers, and financial account balances with various countries around the world. In some cases, countries with known corruption issues have access to this delicate information, putting families at risk of extortion, kidnapping, and other harm.
Fortunately, the United States in general, and especially Nevada, still prioritize privacy – even for non-U.S. citizens who choose to hold their assets in America.
Why Wealthy International Families Are Moving Their Assets to Nevada
The State of Nevada has become one of the most popular locations for asset protection and trustee services in the world.
Nevada is attractive to wealthy non-U.S. citizens for four reasons:
- Nevada’s favorable trust and estate laws
- The quality of Nevada attorneys and CPAs
- The experience of Nevada trust companies in working with international families
Also, Nevada sets itself apart from other U.S. states with favorable trust laws because:
- Nevada does not tax the income of trusts
- While most states require up to four years, the statute of limitations on the transfer of assets is only twenty-four months in Nevada
- Nevada allows for directed trusts, allowing an independent financial advisor to manage the funds of the trust
The Nevada legislature has displayed a positive track record of creating favorable laws for wealth management and asset protection, with continual improvements in each legislative session.
The Benefits of Forming a Trust in the United States
Although Nevada provides unique advantages, the U.S. overall is a great place for international families to establish a trust.
The U.S. offers:
- Stability – The political and regulatory environment in the United States remains stable.
- Strong Rule of Law – The state and federal court systems protect personal property rights.
- Favorable Tax Laws – Non-resident aliens can avoid estate taxes on residential property held in a U.S. trust. U.S. securities held by an offshore company owned by a Nevada Foreign Grantor Trust are not subject to either U.S. capital gains taxes or estate taxes.
The State of Nevada also offers excellent privacy provisions when establishing business entities such as LLCs, with options for U.S. and non-U.S. citizens to keep their financial affairs private in trust.
Alliance Trust Company of Nevada has managing directors in the U.S., Latin America, Hong Kong, and Switzerland. We are a multilingual company speaking English, Spanish, French, Italian, and Mandarin. Like the state of Nevada, we continue to develop our capabilities to better serve international families.