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Nevada asset protection trust: key features and rules
A Nevada asset protection trust is a spendthrift trust under NRS chapter 166 in which the settlor can also be a beneficiary, with one trustee based in the state. Each rule below is listed by section, with its source and date, and your lawyer confirms how each applies to your deed.
Reviewed by a senior trust administrator, updated
Key facts
- Trust structure
- NRS 166.040: irrevocable writing; no mandatory distributions to the settlor[1]
- Perpetuity period
- NRS 111.1031: nonvested interests are valid if they vest within 365 years[2]
- Asset protection rule
- NRS 166.170: creditor challenges are time-limited; clear and convincing proof[1]
- Reserved settlor powers
- NRS 166.045: the settlor has only the powers the trust instrument gives[1]
- Trustee requirement
- NRS 166.015: a settlor-beneficiary trust needs a Nevada-based trustee[1]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assetsTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Investment adviser gives investment directionsInvestment adviserGives investment directions that the trustee follows
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Investment adviser | Gives investment directions that the trustee follows |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- A trust protector can be given defined powers, such as approving distributions.
- A trust adviser can be given a role beside the trustee, within the instrument and your lawyer's advice.
- If the settlor is also a beneficiary, one trustee must be a Nevada-domiciled person or firm.
- The settlor has only the powers the trust instrument gives.
The governing law
Nevada’s trust law sits in the Nevada Revised Statutes. Chapter 163 governs trusts in general; chapter 166 adds the self-settled spendthrift rules. Chapter 111 sets the perpetuities rule.
The legislature publishes each chapter on its website.
A lawyer in Nevada applies the section that fits your deed.
A spendthrift trust may not last longer than the period the perpetuities sections allow (NRS 166.140). For Nevada that period is 365 years, so the structure suits families who plan across generations.
Who may act as trustee
If the settlor is also a beneficiary, NRS 166.015 requires one trustee to be a Nevada-domiciled individual, or a trust company or bank with an office in the state. A bank must have trust powers.
A trust company in Nevada holds office as trustee, and we name it in writing before you sign.
Only one trustee has to meet the Nevada test. Co-trustees, a trust protector or a trust adviser may sit elsewhere, subject to the instrument.
The settlor keeps only the powers the instrument gives (NRS 166.045), so a role you want for yourself has to be written in before signing. We do not offer a role until a lawyer in Nevada has confirmed it works for your structure.
Features the law allows
The rows below are drafting options for your lawyer to weigh, not results we promise.
| Feature | What the statute provides |
|---|---|
| Settlor as beneficiary | Allowed if the trust meets the conditions of chapter 166 |
| Irrevocable writing | The settlor-beneficiary trust is irrevocable; no mandatory distributions to the settlor |
| Spendthrift restraint | A beneficiary’s interest cannot be assigned or seized; a court has exclusive jurisdiction |
| Creditor claims | Challenges to a transfer are time-limited, on clear and convincing proof |
| Directed trust | Trust adviser, trust protector and directed fiduciary are named in chapter 163; your lawyer confirms how they apply to your deed |
Source: Nevada Legislature: NRS Chapter 166, Spendthrift trusts, 2026-11-05.
For the creditor rule, NRS 166.170 limits the time within which a creditor can challenge a transfer.
A creditor with a claim before the transfer has the longer of two years or six months after discovery; the section sets separate rules for others.
Limits and requirements
Each Nevada feature has conditions attached, and a draft that overlooks them can fail. These are the points your lawyer will raise first.
- Written, irrevocable terms. NRS 166.040 asks for an irrevocable writing and bars mandatory distributions to the settlor, so the draft is settled before any asset moves.
- A time limit that runs. NRS 166.140 ties the life of the trust to the perpetuities period, so a 365-year design still needs a plan for who takes over each office.
- Intent to defraud. NRS 166.170 turns on whether the transfer was made to defraud known creditors, so timing and solvency are reviewed first.
- Outside courts. The chapter 166 sections cited here do not bar enforcement of outside judgments; your lawyer applies the section that fits your deed.
- Your home courts. A court outside Nevada may reach a different view, and may treat you as still owning assets you control.
We never describe a trust as making assets untouchable. The structure gives the lawyer a set of rules to work with, and outcomes depend on facts and on courts we do not control.
The steps and documents show where these checks happen during set-up.
Sources and review dates
Sources and review dates are listed in the facts table, which links each point to the state legislature’s website.
To go further, see the tax and reporting page, and for short answers the plain-answers page. For what each part costs, see the cost guide, and for an overview return to the main guide.
Our page on wealth structuring and asset protection explains how we approach planning against claims in general.
Frequently asked questions
What is a Nevada asset protection trust?
It is a spendthrift trust under chapter 166 in which the settlor may also be a beneficiary. The statute sets conditions: an irrevocable writing, a trustee based in the state, and no intent to defraud known creditors. Whether it protects anything in your case is for your lawyer to judge.
Which law governs a trust in Nevada?
The Nevada Revised Statutes govern. Chapter 163 covers trusts in general, chapter 166 covers spendthrift trusts, and chapter 111 sets the perpetuities rule. The instrument names its governing law. Counsel works from the current statute text, and we cite the sections rather than reproduce them.
Who may act as trustee in Nevada?
Where the settlor also benefits, the law wants at least one trustee with a Nevada footing: a resident individual, or a trust company or bank that keeps an office in the state. Other seats, such as an adviser abroad, can go to people elsewhere. The line-up is tested against your plan before you sign.
Sources
- Nevada Legislature: NRS Chapter 166, Spendthrift trusts, read 2026-11-05.
- Nevada Legislature: NRS Chapter 111, Estates in property; conveyancing and recording, read 2026-11-05.
- Nevada Legislature: NRS Chapter 163, Trusts, read 2026-11-05.