Nevada companies acquire higher advantages by using asset protection strategies than offshore opportunities. The IRS has altered their regulations that apply to offshore banking for U.S. companies. For this reason, these options are far more costly for businesses and lose their overall value. This indicates that the owner could stand to lose more of the trust through regulation than they would if they use LLC asset protection in Las Vegas, NV.
Are These Trusts Limited to Nevada Companies?
No. Companies throughout the United States are allowed to acquire these services through Nevada organizations. The only drawback for non-residents of Nevada is that they are required to assign authority to a trustee in the state. The Spendthrift Trust Act requires monitoring of records for these accounts by an administrator who is familiar with local laws.
Why Should Companies Acquire a Trust in Nevada?
The state offers complete protection after two years. The statute of limitations for all states except Nevada is four years. This implies that all funds transferred into a spendthrift trust in the state are protected from creditors in a decreased amount of time. To review further options for LLC asset protection in Las Vegas, NV, contact your preferred attorney. Click here to get more information.
Reducing Tax Implications
To eliminate tax implications the company owner could identify the transfer as a gift to the trustee entirely. Alternatively, the owner could separately file a tax return for the trust. The trustee could choose to file a tax return for these funds to separate it completely from the company.
What are the Limitations of a Spendthrift Trust?
Companies that are in bankruptcy currently cannot utilize these trusts to hide funds. The bankruptcy court requires documentation for all income sources and assets. If a company owner creates a spendthrift trust prior to filing bankruptcy, they are required to notify the court. However, if the statute of limitations has run out, the court cannot file against the trust.
Creating a trust that is separate from your company protects your assets. This allows you to gain peace of mind that your profits are secure. If owners wish to use these trusts to transfer funds as a form of inheritance, they reduce the financial impact on the beneficiary. To begin the process for LLC asset protection in Las Vegas, NV, contact Grant Morris Dodds now.
