The state of Nevada is widely recognized as the most attractive situs in the United States (and arguably the world) to form new trusts, new trust companies, or relocate existing trusts.
Here are many key reasons why Nevada is one of the most sought after situs locations in the world for trusts:
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 residence anywhere in the world without impacting their choice of where they spend their time.
Nevada has progressive and flexible trust statutes. The state legislature is extremely business friendly, adopting innovative laws to encourage trust and PFTC formation. Nevada's use of the Uniform Prudent Investor's Act allows flexibility with investment decisions, and the ability to use unitrust interests 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, strongly limiting 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, 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, allowing for the efficient transfer of wealth through generations.
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, with the ability to perform non-judicial settlements allowing for certain limited modifications to trust documents without court approval. Laws even allow for virtual representation, and there is a statutory provision for trust protectors, acting 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.