Utilizing Trusts, LLCs And Legal Entities For Asset Protection In Nevada

In this article, you can discover…

• How trusts and LLCs can help you protect assets during major life changes.
• Which assets are exempt from creditor claims in Nevada.
• When to revise asset protection plans with your lawyer. 

How Do Changes In Personal Or Economic Circumstances Affect The Vulnerability Of Assets Over Time?

Assets become vulnerable to depletion during events of distress. These most commonly include a lawsuit or a divorce. Any instance in which an outside party can seek a legal claim over your business affairs or your assets leaves you vulnerable. This sudden need for increased funds can lead you to take business risks, which leave you even more vulnerable or prone to making costly financial errors. 

What Objectives Should I Aim For When Working With A Nevada Asset Protection Planning Attorney?

The main goal that an asset protection planning attorney will help you reach is to separate your assets from those who may wish to take them. This is often done through separating ownership from control; you legally control and yet do not legally own these assets, keeping them safe from creditors, lawsuits, and divorce proceedings. The legal control allows you to receive some benefits from the wealth without being compelled to hand it over as you would an asset you legally own. 

Which Types Of Assets Require Safeguarding In The State Of Nevada?

All assets can and should be safeguarded. Assets that can be liquidated and sold can be targeted by a creditor; the most significant of these assets for many people is their home. 

The State of Nevada has a homestead exemption of about $455,000, but this may cover only half the value of your home. Protecting your residence from creditors is a key task that an asset protection planning attorney can help you with. 

Your business is also worth protecting. While there are no homestead protections for businesses, there are ways to help protect portions of your enterprise from creditors through trusts and careful planning.

Attorney Kent Woods is a seasoned lawyer based in Las Vegas, Nevada. For over 15 years, he’s helped business owners just like you navigate asset protection to help their enterprises survive and thrive even in the toughest of times.

Have questions about asset protection as a business owner?
Contact The Law Office Of Kent P. Woods at (702) 703-1540 for an initial consultation today!

What Factors Determine Which Assets Are Considered Exempt From Creditor Claims Under Nevada Law?

Under Nevada law, up to $455,000 in equity from your home is protected from creditor claims. Smaller amounts are also protected, such as an amount for a car and a wild card exemption that can be applied to other assets. Beyond this, your assets can be claimed and taken by creditors. 

On a federal level, 401Ks and IRAs up to a certain level are exempt. If you have an especially valuable home, an IRA that is more valuable than the federal limit, or a business, then taking extra steps to protect those assets is important. 

Can Legal Entities Be Utilized To Protect Assets During My Lifetime And Posthumously?

Yes, trusts, LLCs, and other legal entities can be used to place liabilities in their proper place and protect them from lawsuits and other forms of seizure. It’s important to separate your personal assets from those assets used to help run or protect your business. 

For example, should an employee of your business do something negligent and your corporation is sued, an LLC can help ensure that the lawsuit is paid for with the appropriate funds, as opposed to being paid for with personal resources. 

This ensures that your business is responsible and ethical in its acceptance of liability while helping protect unrelated assets from seizure or liquidation. 

How Frequently Should Asset Protection Plans Be Reviewed And Revised?

It’s generally wise to review and update your estate plan once a year or more frequently as needs arise. Events such as a divorce, lawsuit, major changes in lifestyle, or major changes in business circumstances would also merit a revision of plans. An observant and capable asset protection lawyer can also help you revise plans in light of changes to regulatory or tax law as needed. 

Do I Need A Lawyer To Draft And Implement Asset Protection Plans, Or Can I Attempt This By Myself?

Having a professional, astute, and objective attorney help you implement asset protection is key. Trying to set these protections in place yourself will likely lead to errors, lapses in judgment, and financial mistakes that a court is unlikely to forgive. 

Your LLC needs to be set up correctly and have the appropriate protections and documents in place. Should someone seek to challenge the structure of your business or seize assets, a solid legal framework established and overseen by a qualified attorney is your best and surest defense. 

For more information on Asset Protection Planning In Nevada, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (702) 703-1540 today.

Attorney Kent Woods is a seasoned lawyer based in Las Vegas, Nevada. For over 15 years, he’s helped business owners just like you navigate asset protection to help their enterprises survive and thrive even in the toughest of times.

Have questions about asset protection as a business owner?
Contact The Law Office Of Kent P. Woods at (702) 703-1540 for an initial consultation today!