Nevada is consistently ranked amongst the top US States in which to create Trusts for the protection and preservation of wealth, and for succession planning purposes. Considering the State’s well established Trust and related taxation laws, and its continued approach towards the enhancement of its Trust offerings, it is easy to understand why.
Key Features Of The Nevada Foreign Grantor Trust
- Nevada Trusts may be revocable or irrevocable;
- Nevada Trusts are not subject to US income tax on non-US sourced income;
- Appropriately structured Trusts may protect from US estate taxation;
- Nevada Trusts afford asset protection, confidentiality, security, and a wide range of planning opportunities in a cost and tax efficient manner.
You do not have to reside in Nevada in order to use / create a Nevada Foreign Grantor Trust;
- Nevada has no State or corporate income tax. Therefore, income generated from the trust is never taxed on a State level;
- Where appropriate, the Settlor(s) may retain certain powers concerning management of the Trust assets;
- Dynasty Trusts are permitted, which can exist for up to 365 years.
Creation Of Nevada Foreign Grantor Trusts
In order to create a Nevada Trust, a suitably witnessed Deed of Settlement is entered into between the Settlor and the Trustee. Declarations of Trust may also be utilised. No formal Trust registrations or registers are required in the State of Nevada.
A Protector or Trust Advisor should be appointed and it is recommended that this role is fulfilled by someone outside of the US.
Where a Nevada Foreign Grantor Trust is established to hold non-US assets and investments for the benefit of non-US beneficiaries, such a Trust will not be subject to Nevada or Federal taxation.
Where US situs assets are in existence and/or the Trust beneficiaries include US persons, then additional planning considerations will be required.
Nevada Trust Advantages
The Nevada Foreign Grantor Trust is a flexible vehicle for holding assets or for assisting the conduct of commercial activity in a confidential and tax efficient manner.
Amongst others, the Nevada Trust offering incorporates benefits such as asset protection, confidentiality and related security, efficient succession planning, and wealth maximisation, all from a secure, established and reputable onshore jurisdiction.