The asset protection laws are varied by state so the different strategies you will be able to implement depend on what they are. Don't assume that the protection laws are similar to those in another state or you will likely find yourself in a difficult position. You may end up not taking advantage of some great opportunities that are available in that state as well. Let's take a close look at the particular laws that are in place in the state of Nevada.

The state of Nevada offers three great asset protection strategies that you can consider. The Limited Liability Company (LLC) allows the business to restructure in the eyes of creditors but it really doesn't have any effect on how the business is operated. It allows the assets of the individual owners to be separate from those of the business. In this regard if the business should go bankrupt or the business is sued the personal assets of the owner will not be taken.

A dynasty trust was designed to work with the Nevada ruling that a trust can be in place for up to 100 years. This type of design allows heirs to benefit from the trust fund but they won't be required to pay any estate taxes on the money they are allowed to withdraw. This also lets the money in the trust continue to grow considerably for the next generation instead of being completely depleted. In order for a dynasty trust to be legal at least one person on the trust must be a legal resident of the state of Nevada.

The third type of asset protection program under Nevada law is an asset protection trust. This can be set up for your own personal use instead of for others to benefit from. The assets have to remain in the trust for a minimum of two years before they are considered to be exempt by creditors. The individual who has the asset protection trust must be a resident of Nevada as well.