Why Nevada?

Unlike many states, Nevada does not require a member of the family trust to live in Nevada. With a PFTC in Nevada, a resident delegate may be selected. Lenox serves each PFTC as that designated Nevada resident director, allowing clients to keep their residences around with world and without impacting their choice of where they spend their time.

Nevada has progressive and flexible trust statutes. The state legislature is extremely business friendly and is highly responsive, adopting innovative laws to encourage trust and PFTC formation. Nevada’s use of the Uniform Prudent Investor’s Act allows flexibility with investment decisions with regard to the need to diversify, for example. The ability to use unitrust interests in Nevada also allows for beneficiary flexibility, balancing long term gains with near term distributions.

Nevada does not tax personal or corporate income, inheritance, estates, capital gains, or gifts. Eliminating all state taxes has a significant compounding effect on investment returns, positively impacting long term gains leading to maximum accumulation of wealth.

Nevada has the strictest privacy laws in the United States. Nevada strongly limits public disclosure of corporate and trust information. Corporations may even have proxy Directors. A PFTC can even choose not to hold a trust charter if they desire, thereby eliminating most oversight by the State.

When it comes to asset protection, Nevada is more attractive than many offshore choices, offering increased stability, lower complexity and lower cost. The statute of limitations is shorter than most places, and there are no exception creditors, nor personal creditors allowed. Nevada’s domestic asset protection trusts are unmatched in their power to protect, and unique trusts like NING Trusts are unequaled in the ability to shield assets and minimize taxation.

Decanting and reforming existing trusts is much simpler in Nevada than any other State. There is no transfer tax for 1,000 years, and dynasty trusts can exist for 365 years, which allows for the efficient transfer of wealth through generations. The ability to change and modify trust documents to reflect changes in circumstance, taxes, or laws, makes Nevada uniquely appealing.

Capitalization requirements are low for PFTC corporations in Nevada. In fact, if unchartered there is not a capitalization requirement.

The court system in Nevada is extremely prompt and efficient. There is also the ability to perform non-judicial settlements, allowing for certain limited modifications to trust documents without court approval. Laws even allow for virtual representation, allowing beneficiaries to represent minor or unknown (unborn) beneficiaries. There is a statutory provision for trust protectors, and this can act as a check and balance on the trustee.

Lenox can inform and guide clients, and their wealth management teams, through the requirements and process to establish situs in Nevada, and benefit from the extraordinary advantages of what Nevada trusts have to offer.