Asset protection is the lawful arrangement of assets, entities, and trusts so that they are placed beyond the easy reach of future creditors. Done well, it is proactive. The most effective planning happens long before any claim, dispute, or judgment is on the horizon.
Nevada is a leading jurisdiction for this work. Its self-settled spendthrift trust statute, NRS Chapter 166, allows a person to create a trust, retain certain benefits, and still protect the assets from future creditors, subject to a statutory seasoning period. Nevada also provides strong charging-order protection for LLCs and limited partnerships, and it imposes no state income tax.
Business planning is the other half of the same effort. It includes choosing and forming the right entity, drafting operating and buy-sell agreements, and building a succession plan so a business survives an owner’s retirement, disability, death, or departure. Structured together, business and personal planning reinforce each other.
Timing is everything. Transfers made after a claim arises, or once one is reasonably foreseeable, can be unwound as fraudulent under Nevada’s Uniform Fraudulent Transfer Act, NRS Chapter 112. That is why we counsel clients to plan early, deliberately, and within the law.
| Provider Type | Nevada Licensing Board | Governing Statute |
|---|---|---|
| Physicians (MD) | Nevada State Board of Medical Examiners | NRS Chapter 630 |
| Osteopathic physicians (DO) | Nevada State Board of Osteopathic Medicine | NRS Chapter 633 |
| Nurses & APRNs | Nevada State Board of Nursing | NRS Chapter 632 |
| Dentists & hygienists | Nevada State Board of Dental Examiners | NRS Chapter 631 |
| Pharmacists | Nevada State Board of Pharmacy | NRS Chapter 639 |
| Chiropractors | Chiropractic Physicians’ Board of Nevada | NRS Chapter 634 |
| Physical therapists | Nevada Physical Therapy Board | NRS Chapter 640 |
A Nevada asset protection trust is a self-settled spendthrift trust created under NRS Chapter 166. It lets the person who funds the trust remain a permitted beneficiary while still shielding the trust assets from future creditors, subject to a statutory seasoning period and other requirements. Nevada’s statute is regarded as one of the strongest of its kind in the country.
In most cases, yes, at least as to that claim. Asset protection depends on planning done before a creditor problem is reasonably foreseeable. Transfers made after a claim arises can be unwound as fraudulent under NRS Chapter 112. That is why the time to plan is well before any dispute, and why we encourage clients not to wait.
Estate planning is chiefly about transferring assets at death and managing incapacity, through wills, trusts, and related documents. Asset protection is about shielding assets from creditors during your lifetime. The two overlap and work best together, and a good plan coordinates both so that protection and transfer goals reinforce each other.
A properly formed Nevada LLC separates business liabilities from personal assets, and Nevada law makes the charging order a creditor’s sole remedy against a member’s interest under NRS 86.401. That means a creditor generally cannot seize the interest or force a sale, and Nevada extends this protection even to single-member LLCs, which many states do not.
Business succession planning is the process of deciding, in advance, how ownership and management of a business will transfer when an owner retires, becomes disabled, dies, or leaves. It typically uses buy-sell agreements and governance provisions. Without a plan, an owner’s departure can trigger disputes, forced sales, or the loss of the business’s value.
No. Non-residents can use Nevada trusts, though doing so requires careful structuring, including a qualified Nevada trustee and proper administration in the state. Because another state’s law may also come into play, non-residents in particular should work with counsel experienced in Nevada trust structures to make the protection effective.
Yes, when properly formed and operated for legitimate purposes. Family limited partnerships and family LLCs consolidate and manage family wealth, provide charging-order protection, and support gifting and succession planning. As with any structure, they must be respected as real entities and not used to hinder existing creditors, which is where experienced counsel matters.