How can people protect their house, cash, stocks and bonds, jewelry, art, rental properties and other assets? How can people avoid (not evade) state income tax on earnings from those assets? Easy! Perhaps you’ve heard of a ‘Trust’, but aren’t sure if that’s something that would benefit you or your dependents. We’ve traditionally only heard of ‘Trusts’ in the movies and think of those as only for the very wealthy. Well I’m here to tell you that asset protection is one of the most important things you can do for your family and a ‘trust’ is not just for the rich.
A Trust is simply a legally formed (like ‘incorporated’) entity, with its own tax ID number issued by the IRS, that holds your protected assets. In short, as a unique legal entity it is NOT “you”, and therefore can’t be touched by any personal litigation or family squabbles.
A trust can protect assets from a variety of circumstances, such as:
As a Nevada entity, the earnings and income on trust assets (dividends, capital gains, rental income, etc) are subject to Nevada state tax, which is 0%! You still pay federal tax, of course, as the IRS always gets its due, but trusts do legally avoid state tax issues. This is one reason why residents of high tax states are putting assets into Nevada trusts. See the Bloomberg article on this topic by clicking here.
When you work with Prime Trust, you benefit from our long history of serving many types of clients. Whether you want to simply protect your nest egg, manage wealth across generations, or you’re a business owner who wants to create and protect their hard-earned money, we can do that.
At Prime Trust, we can help you:
Our relationship with you is supported by the strongest standard of integrity and accountability. Whether we are managing your portfolio, serving as a trustee, or administering an estate, our focus is what best meets your objectives.