Nevada Dynasty Trust Laws

Comprehensive guide to Nevada's trust statutes for dynasty planning.

Last reviewed: 2025-12-21 | 2025 Regular Session
100
Dynasty
100
State
95
Asset
98
Directed
92
Decanting

Is Nevada right for your trust?

Compare Nevada against other top jurisdictions based on your specific planning goals.

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Dynasty Duration

How long can a trust last in this jurisdiction? States that have abolished the Rule Against Perpetuities allow trusts to continue indefinitely, maximizing multigenerational wealth transfer.
100/100
Perpetual (personal property)

Nevada abolished the Rule Against Perpetuities for personal property in 2005. Trusts holding financial assets, securities, and business interests can continue indefinitely. Real property interests remain subject to the common law RAP.

Conditions & Requirements

  • Real property remains subject to Rule Against Perpetuities

Important Considerations

  • ⚠️Real estate is still subject to Rule Against Perpetuities unless converted to personal property

Statutory References

NRS 111.1031Abolition of Rule Against Perpetuities for personal property
Verified: 2025-12-21

State Income Tax

Does the state impose income tax on trust income? States with no income tax or favorable trust taxation rules can significantly reduce the tax burden on trust earnings.
100/100
No state income tax

Nevada's constitution prohibits state income tax. This applies to individuals, corporations, and trusts. Trust income is not taxed at the state level regardless of trustee location, beneficiary location, or income source.

Statutory References

Nevada Constitution, Article 10, Section 1Constitutional prohibition on state income tax
Verified: 2025-12-21

Asset Protection

How strong are the state's Domestic Asset Protection Trust (DAPT) laws? Key factors include statute of limitations for fraudulent transfer claims, exception creditors, and judicial history.
95/100
Strong DAPT with 2-year statute of limitations

Nevada has one of the strongest DAPT statutes with a 2-year statute of limitations for fraudulent transfer claims. The state allows self-settled spendthrift trusts and has fewer exception creditors than many competing jurisdictions.

Conditions & Requirements

  • Requires Nevada resident trustee or Nevada trust company
  • Trustee must maintain records and participate in administration in Nevada

Important Considerations

  • ⚠️Alimony and child support obligations are exception creditors
  • ⚠️Certain tort claims arising before transfer may reach assets
  • ⚠️Property settlement claims from divorce can pierce protection

Statutory References

NRS Chapter 166Spendthrift Trusts - DAPT provisions
NRS 166.170Fraudulent transfer provisions and statute of limitations
NRS 166.040Protection from creditors' claims
Verified: 2025-12-21

Directed Trust & Trust Protector

Does the state have robust statutes for directed trusts (separating investment and distribution duties) and trust protectors? These structures provide flexibility and professional management.
98/100
Comprehensive directed trust and trust protector statutes

Nevada has comprehensive directed trust statutes allowing separation of trustee duties. Investment advisors and distribution advisors can direct the trustee with explicit liability protection. Trust protector powers are broadly defined and can include powers to modify trust terms, remove trustees, and change situs.

Statutory References

NRS 163.5553-163.5556Directed trust provisions
NRS 163.5547-163.5548Trust protector and advisor provisions
Verified: 2025-12-21

Decanting Flexibility

How easily can trust terms be modified through decanting? Broader decanting powers allow for greater flexibility to adapt to changing circumstances without court involvement.
92/100
Broad decanting powers with notice requirement

Nevada's decanting statute allows trustees with discretionary authority to distribute trust property to new trusts with modified terms. No court approval is required. Decanting can add trust protector provisions, change administrative provisions, and modify beneficial interests in many cases.

Conditions & Requirements

  • 60 days written notice to qualified beneficiaries required
  • Cannot extend perpetuities period beyond original trust

Important Considerations

  • ⚠️Cannot reduce fixed income interests
  • ⚠️Cannot eliminate vested interests
  • ⚠️Cannot decant to reduce charitable interests

Statutory References

NRS 163.556Trustee's power to distribute property in further trust (decanting)
Verified: 2025-12-21

The Honest Take on Nevada

What It Does Best

No state income tax, strong asset protection, and very flexible trust laws. The 2-year statute of limitations for fraudulent transfers is tied for shortest in the country.

The Downside

The 365-year limit on real property trusts is annoying if you're funding with real estate. Also, trust companies here trend smaller and less established than SD.

Use NV If...

  • You have a Nevada attorney or existing relationship
  • Asset protection is your #1 priority
  • Your trust is primarily liquid assets (not real estate)

Skip NV If...

  • Real estate is a major part of your trust assets
  • You want the most established trust company options
  • You're looking for the lowest fees (SD/WY often beat NV)

Bottom Line

Nevada is solid. It's not better than South Dakota for most people, but it's not worse either. If your attorney prefers Nevada, don't overthink it.

General Caveats for Nevada

Requires a Nevada-qualified trustee (individual resident or Nevada trust company).
Applies when: Always
Real property held in trust remains subject to traditional Rule Against Perpetuities.
Applies when: Trust will hold real estate long-term
Nevada's proximity to California makes it popular for West Coast clients.
Applies when: California or western state residents

Compare Nevada vs. Other States

Official Sources

Disclaimer: This page provides general information about Nevada trust laws for educational purposes only. It does not constitute legal, tax, or financial advice. Laws change frequently; verify all information with current statutes and consult qualified professionals before making any decisions.