Nevada is a leading US trust jurisdiction, combining a progressive legal framework with enhanced asset protection tools and a favorable tax environment to support strategic and flexible wealth transfer planning.
Nevada’s innovative business environment, modern infrastructure, and collaborative community attract families and enterprises alike. Willow Street provides implementation, administration, and governance services for efficient, flexible, and cost-effective fiduciary solutions that advance families’ strategic and financial goals.
An Overview of Nevada’s Advantages Follows:
Modern Trust Laws
The Nevada Revised Statutes create opportunities for the flexible and efficient establishment and administration of wealth transfer structures.
- Directed and delegated trusts. Nevada law permits the allocation of trustee duties to different parties, which allows family members or trusted advisors to retain control of investment and distribution decisions. (Subject to tax considerations.)
- Dynasty trusts. Nevada trusts may last for up to 365 years.
- Trust decanting and modification. Flexible Nevada laws enable reformation and modernization of existing trusts, including change of situs and governing law.
- Special purpose entities (SPEs). Individuals inside or outside of Nevada may serve as trust protectors and trust advisors through entities (most commonly LLCs). This structure allows more flexibility for who may participate and provides enhanced liability protection. SPEs are usually not required to register with the Nevada Financial Institutions Division.
- Settlement agreement. Nevada law permits private settlement of trust matters without court supervision, increasing privacy, timeliness, and cost savings.
- Enhanced virtual representation. Holders of powers of appointment, parents/guardians, presumptive remainder beneficiaries, or persons with substantially similar interests and no material conflict of interest may represent minor, unborn, or remainder beneficiaries, providing certainty, finality, and efficiency to important decisions made by beneficiaries.
- Friendly business laws. Nevada maintains a flexible business law framework and streamlined filing processes, making it an appealing jurisdiction for establishing and maintaining business entities.
Tax Efficiency
Nevada does not impose state income or estate taxes, which positively impacts after-tax returns and wealth transfer.-
- No state income or transfer taxes for individuals or businesses, including
- Individual income tax,
- Gift, estate, or inheritance tax,
- Corporate or LLC income tax,
- Tax imposed due to resident settlor, fiduciary, or beneficiary, and
- Tax on out-of-state retirement income.
- No state income or transfer taxes for individuals or businesses, including
- Low property tax rates.
- Cost-effective property transfer.
Administrative Efficiency & Protection
- Nevada is a safe and efficient jurisdiction for the implementation of family wealth structures.
- Trusts are not required to register and trust documents are not publicly available.
- Trust-related judicial proceedings may be redacted or sealed to the public; access is limited to the court.
- Nevada strictly enforces no contest (in terrorem) clauses with some exceptions, including contest brought on probable cause.
- Nevada trusts and LLCs — including single-member LLCs — offer enhanced asset protection.
- Self-settled trusts (domestic asset protection trusts) are statutorily permitted;
- Nevada’s domestic asset protection trust laws are notably robust, with no exception creditors.
- Beneficiary notice requirements may be modified or eliminated (silent or “quiet” trusts).
Family Trust Companies
Family trust companies (FTCs), referred to as private trust companies in other states, enable centralized control of family trusts and assets, nexus with Nevada, and continuity of management and family governance. Nevada law permits both licensed (regulated) and unlicensed (unregulated) FTCs to provide trustee services to family trusts.
Licensed Family Trust Companies
- Requirements around minimum capital, surety and fidelity bonds (or capital pledge), regulatory examinations, Nevada bank account, resident officer, registered agent, and office space.
- Licensing process conducted by the Nevada Financial Institutions Division.
Formal examination by the Nevada Financial Institutions Division within the first - 12-24 months of licensing, and generally triannual examinations thereafter (based on prior examination results).
Unlicensed Family Trust Companies
- No minimum capital requirements, surety and fidelity bond requirements, or regulatory examinations — though the FTC may choose to conduct annual self-audits and match Nevada’s capitalization requirements.
- Required to notify the Nevada Financial Institutions Division of a “designated relative.”
- The FTC may request a letter of assurance from the Nevada Financial Institutions Division as to regulatory status and permissibility.