Living Trust Attorney Las Vegas: How to Protect Your Assets from Lawsuits

You’ve worked hard for what you have. Your home in Las Vegas, your investments, your savings. They represent years of effort and sacrifice. But in today’s lawsuit-happy society, a single legal claim could wipe out everything you’ve built.

As a Las Vegas Living Trust attorney at Fales Law Group, I’ve seen too many families lose their hard-earned assets because they didn’t have the right protections in place. Nevada offers powerful asset protection tools that many people simply don’t know about.

If you’re ready to secure your future with a customized estate plan, contact a trusted Living Trust attorney in Las Vegas today for a free consultation.

In this guide, I’ll walk you through why standard Living Trusts aren’t enough for lawsuit protection, how Nevada’s unique laws can shield your wealth, and what steps you can take right now to protect everything you’ve worked for.

The Risk Is Real: Why Asset Protection Matters

Picture this: You’re driving home from a dinner with friends when another driver runs a red light. Despite your best efforts, you can’t avoid the collision. No one is seriously hurt, but the other driver claims otherwise and sues you for damages far exceeding your insurance coverage.

Without proper asset protection, your personal assets, such as your home, savings, and investments, could be at risk.

This scenario isn’t far-fetched. I see it happen all the time in my practice. With our extensive experience in estate and asset protection, we are dedicated to protecting our clients and safeguarding our clients’ interests in situations just like this.

Nevada courts handle countless civil lawsuits annually, many seeking substantial damages that can devastate family finances.

The question isn’t if you might face a lawsuit. It’s when.

Why a Standard Living Trust Isn’t Enough

“But wait,” you might be thinking, “I already have a Living Trust. Aren’t my assets protected?”

Not exactly. And this misunderstanding could cost you everything.

A standard revocable Living Trust primarily helps your estate avoid probate, the court-supervised process of distributing your assets after death. While avoiding probate is important (it saves your family time, money, and stress), a revocable Living Trust offers virtually no protection against lawsuits during your lifetime. Unlike irrevocable trusts, which can provide asset protection by removing your control over the assets, revocable trusts can be changed or terminated at any time by the grantor. Like wills, revocable trusts do not shield your assets from creditors or lawsuits while you are alive.

Why? Because you maintain complete control over the assets in a revocable trust. Since you can access and manage these assets freely, courts view them as still belonging to you. This makes them fair game for creditors and plaintiffs.

It’s like having a safe with your name on it but leaving the door wide open. Not much protection there!

Nevada Asset Protection Trusts: A Powerful Shield

Nevada stands out as one of the most favorable states for asset protection in the country. In 1999, Nevada enacted legislation allowing for Nevada Asset Protection Trusts (NAPTs). Nevada state law allows individuals to establish asset protection trusts with unique benefits not available in many other jurisdictions.

These professional trusts offer significant advantages that standard Living Trusts simply can’t match:

1. Strong creditor protection: Assets properly transferred to a NAPT become protected from future creditors after a two-year waiting period, one of the shortest in the nation.
2. No exception creditors: Unlike many states, Nevada doesn’t allow exceptions for certain types of creditors (like divorcing spouses or child support).
3. Perpetual duration: Nevada trusts can theoretically last for up to 365 years, protecting family wealth for generations.
4. Privacy provisions: Nevada law provides enhanced privacy protections for trust arrangements.
5. No state income tax: Nevada has no state income tax, which can result in significant tax savings for the trust.

How a Nevada Asset Protection Trust Works

A Nevada Asset Protection Trust is an irrevocable trust with special provisions that allow you to be a beneficiary while still protecting the assets from your creditors. Here’s how it works:

1. Creation and funding: The person creating (the settlor or grantor) the trust is responsible for funding it by transferring assets into the trust.
2. Independent trustee: You appoint an independent trustee, typically a trust company, bank, or individual who isn’t related to you, to manage the trust.
3. Beneficiary designation: You name yourself as one of the beneficiaries, along with family members or others you wish to benefit. Beneficiary designations in the trust allow assets to be transferred directly to beneficiaries, helping to avoid probate and ensuring a smooth asset transfer.
4. Distribution standards: The trustee makes distributions according to standards set in the trust document, such as for health, education, maintenance, and support.
5. Protection period: After the two-year waiting period, assets in the trust become protected from future creditors’ claims.

The key distinction is that while you benefit from the trust, you don’t directly control the assets. That responsibility falls to the independent trustee. This separation creates the legal shield that protects the assets.

Common Mistakes in Asset Protection Planning

In my years of practice, I’ve seen many well-intentioned people make critical mistakes in their asset protection planning:

1. Waiting too long: Asset protection must be implemented before problems arise. Once a lawsuit is on the horizon, it’s usually too late to protect assets effectively.
2. DIY approaches: Self-created trusts often contain technical errors that render them ineffective against determined creditors. It’s like trying to be your own surgeon, technically possible but rarely advisable!
3. Fraudulent transfers: Moving assets specifically to avoid existing creditors can be deemed fraudulent, potentially resulting in criminal penalties.
4. Assuming all trusts are equal: Not understanding the crucial differences between revocable Living Trusts and asset protection trusts leaves many people with a false sense of security.
5. Failing to maintain the trust: Even well-crafted trusts need regular maintenance as laws and personal circumstances change.
6. Improper asset transfers: Transferring assets without proper planning can trigger gift taxation issues and expose your estate to unnecessary tax liabilities. Additionally, failing to address the risks of fiduciary breaches or undue influence in trust and estate planning can lead to costly legal disputes and jeopardize your intended asset protection.

The Family PlanTM: A Superior Approach to Estate Planning

I have developed a proprietary estate planning system known as “The Family PlanTM,” which integrates the traditional “plain old Living Trust” with additional legal documents and strategic tools to create a vastly improved solution. Unlike standard Living Trusts, the Family PlanTM addresses many of the common issues and misconceptions that the public often associates with Living Trusts alone. In addition, the Family PlanTM can also address related legal needs such as business planning, business entity formation, business litigation, and elder law as part of a holistic estate planning strategy.

This comprehensive approach ensures broader protection for your assets and family, tackling challenges such as probate avoidance, asset protection, and legal complexities that typical Living Trusts may not fully resolve. Importantly, the Family PlanTM represents a unique, carefully designed product that, in my opinion, offers the best way to safeguard your legacy and provide peace of mind for your loved ones.

If you’re interested in learning how the Family PlanTM can offer you enhanced estate planning benefits beyond a traditional living trust, I encourage you to take the next step.

The Time to Act Is Now

Asset protection planning isn’t about hiding assets or avoiding legitimate obligations. It’s about legally structuring your affairs to discourage frivolous lawsuits and protect your family’s financial future from our increasingly litigious society.

The effectiveness of these strategies depends largely on timing. Once you’re facing a lawsuit or creditor claim, it’s typically too late to implement asset protection. Courts can void transfers made to avoid existing creditors. Asset protection strategies should be reviewed and updated as your life changes, ensuring ongoing protection throughout your and your family’s lives.

That’s why being proactive is essential. The best time to protect your assets is now, before any threats materialize.

Taking the Next Step with Fales Law Group

At Fales Law Group, I’ve helped hundreds of Nevada families safeguard their legacies from potential threats. Our probate attorney has extensive experience handling probate matters and estates throughout Southern Nevada. The peace of mind that comes from knowing your assets are secure is invaluable.

Asset protection planning is complex and highly professional.  That’s why working with a qualified lawyer is essential to navigate complex estate planning and asset protection challenges. Working with an attorney who understands Nevada’s specific laws and stays current with legislative changes ensures your plan will stand up to legal challenges.

Finally, there’s no one-size-fits-all approach. A comprehensive asset protection strategy should be tailored to your unique circumstances, goals, and risk profile. What works for your neighbor or colleague might not be right for you.

Protect your family and future with a customized estate plan built around the Family Plan system. Contact a trusted Living Trust attorney in Las Vegas today to schedule your free consultation and discover how this innovative approach can meet your unique needs.