November 12, 2015

When a liability issue arises, action is often too late even if it’s well-meaning. Early formation of an LLC or an asset protection trust in Nevada can be protective and can serve as a hindrance to creditors. Only an experienced asset protection planning attorney should help you put together an LLC or other structure out of state. 

But it can usually be done with very little reporting on a tax-free basis and very quickly. One of the main benefits of working with an asset protection trust in Nevada is that it provides charging order protection. This means that liens attached carry economic interest only, not allowing a creditor to see shares or take control.

When devised properly, the asset protection trust prevents creditors from seizing assets held within the trust, and another major benefit of going this route is that it can be set up quite easily by an individual. When this protection planning is used, it can create a double layer of protection. A creditor may not receive a distribution or make decisions but assets are also protected by the trust forcing a lower settlement of any lawsuit. In fact using this kind of trust in general can help to prevent lawsuits because creditors may realize that they are not able to tap into the assets they thought they might be able to. As always, only consult with an experienced assets protection planning specialist before putting together any kind of trust.