Nevada has some of the strongest domestic asset protection trust legislation in the country. The state offers notable advantages: no exception creditors, a two-year statute of limitations, and no state income tax. For those evaluating where to establish a DAPT, Nevada consistently ranks among the top jurisdictions.
Cost is a common concern when comparing Nevada to other options. Nevada asset protection trust cost includes initial setup fees, ongoing trustee expenses, and administrative costs that continue for the life of the trust. Understanding the full picture helps determine whether Nevada is the right jurisdiction for your needs.
Initial Setup Costs
Attorney fees for establishing a Nevada asset protection trust typically range from $5,000 to $15,000. Some practitioners offer basic formation packages starting around $3,000, while top firms specializing in complex trusts may charge more. The variation depends on the attorney’s experience, the complexity of your situation, and what services are included.
A basic setup fee usually covers the initial consultation, trust document drafting with spendthrift provisions, and general guidance on funding the trust. However, several services often cost extra: asset transfer assistance, real estate deed transfers ($200-$500 per property), business ownership transfers, related documents like wills or powers of attorney, and coordination with CPAs and financial advisors.
Ongoing Trustee Fees
Nevada law requires at least one qualified Nevada-based trustee, either a Nevada resident individual or a Nevada trust company. The trustee must maintain some trust assets or records in Nevada, or prepare tax returns for the trust. This requirement creates ongoing costs that do not exist in every jurisdiction.
Corporate or professional trustee fees typically range from $2,000 to $5,000 per year. Some trustees charge a percentage of assets under management instead, usually 0.5% to 1.5% annually. For a trust holding $1 million, that could mean $5,000 to $15,000 per year in trustee fees alone.
Administrative and Recurring Costs
Trust income requires a separate tax return, and CPA fees for trust taxation typically run $500 to $2,000 annually. Nevada has no state income tax, but federal taxes still apply.
If you need to update or modify trust provisions, attorneys typically charge $300 to $600 per hour. More substantial modifications can cost $1,000 to $3,000 or more. If the trust holds investments, custodial fees often run 0.5% to 1% of assets annually in addition to trustee fees.
What Nevada’s Statutory Advantages Provide
The costs associated with a Nevada trust purchase access to some of the strongest domestic asset protection available.
Nevada is one of only three states, along with Utah and West Virginia, with no statutory exception creditors. In most DAPT states, certain creditor categories can still reach trust assets even after the statute of limitations expires, typically including divorcing spouses and child support claims. Nevada eliminates these exceptions entirely. The Nevada Supreme Court confirmed this in Klabacka v. Nelson, holding that child and spousal support orders cannot be enforced against a properly structured Nevada spendthrift trust if the obligations were not known when the trust was created.
Nevada’s two-year statute of limitations is among the shortest available. Future creditors must bring a claim within two years of the transfer. Pre-existing creditors have the later of two years from transfer or six months after discovering the transfer. Compare this to Wyoming, Delaware, and Alaska, which all have four-year statutes of limitations.
Nevada vs. Wyoming: A Cost Comparison
Nevada and Wyoming both offer strong asset protection, but their cost structures differ in important ways.
Nevada setup costs range from $5,000 to $15,000, with ongoing trustee fees of $2,000 to $5,000 or more annually. The two-year statute of limitations and absence of exception creditors are significant advantages. However, Nevada requires a professional or corporate trustee, creating ongoing annual expenses.
Wyoming setup costs fall in a similar range, but ongoing costs can differ substantially. Wyoming allows private family trust companies, which are LLCs that serve as trustee for family trusts without the same regulatory requirements as public trust companies. You can serve as the manager of your private family trust company and make day-to-day decisions about investments and business operations. This structure can significantly reduce ongoing costs.
Wyoming has a four-year statute of limitations, longer than Nevada’s two years. Wyoming also has an exception for child support claims, while Nevada has none.
For passive investment portfolios, Nevada’s trustee requirement may not be burdensome, and the shorter statute of limitations provides faster protection. For active business owners who need to make quick decisions without waiting for bank trustee approval, Wyoming’s private family trust company structure may be more practical and cost-effective over time.
Is the Cost Worth It?
Nevada makes sense when your priority is the shortest possible statute of limitations, when you are concerned about exception creditors, when you are comfortable with a corporate trustee arrangement, and when your assets are primarily passive investments.
Wyoming may offer better value when you need operational control over business assets, when you want to serve as manager of your own trust company, when a longer planning timeline is acceptable, and when you are cost-sensitive on ongoing fees.
Most practitioners suggest DAPT planning makes sense for those with at least $500,000 in assets. What you are really paying for is a legal structure that creates genuine obstacles for creditors and leverage in settlement negotiations. DAPTs make creditor pursuit more expensive and uncertain, which often influences how disputes resolve.
For guidance on whether Nevada or Wyoming best fits your situation, consider consulting experienced counsel like Mark Pierce and Matt Meuli at Wyoming Asset Protection Attorney.