Nevada state income tax on trusts: what to know

State income tax and trusts

A trust is taxed through the people around it. Where the settlor, the trustee and each beneficiary live decides what gets reported, and to whom.

A settlor living outside the United States can use a trust governed by Nevada law. US federal rules still apply to assets located in the country and to US persons, so your adviser should map both before you sign anything.

The IRS says that when a nonresident who is not a US citizen dies holding US-situated assets, the executor may have to file Form 706-NA. US real estate and shares in US companies are the usual examples.

Whether a trust changes that outcome is for your adviser.

Separately, your home country decides how it sees you as settlor and how it sees a payment to you or a relative as beneficiary.

A structure can look tidy on paper and still be taxed differently at home, so your tax adviser should read the documents before you sign them.

We promise no tax outcome. The Department of Taxation’s estate tax page says Nevada requires no estate tax filing for deaths since 2005.

How the state taxes trust income is a point your adviser checks and your lawyer confirms.

CRS and FATCA reporting: what your lawyer confirms

Under the Common Reporting Standard, banks and some trustees pass account details to tax authorities who swap them with each other; your lawyer confirms how far that reaches your trust.

FATCA is the US regime for accounts held by US persons, and your lawyer confirms how it applies to your trust.

If you are a US person, say so in your first message. Extra checks follow, and your adviser’s view carries more weight.

At the start we collect self-certification forms for the trust and for any company it owns, so that reporting dates can be planned from the first day.

Keep a copy of each form you sign and hand the same copy to your adviser. The answers on the forms should match the answers in your tax returns.

What the trustee reports and when

The trustee keeps the trust’s accounts and records and makes the filings that apply, whether state or federal. Which ones they are turns on the type of trust and what it owns.

A bank holding trust accounts may report under CRS or FATCA, and your lawyer confirms the position for your case. Who reports what depends on the structure and the bank.

Reporting repeats. Expect a yearly round of accounts, confirmations and, where they apply, filings. Once the structure is fixed the trustee gives you the dates, and we enter them in a calendar you and your adviser can both see.

Your own tax position

Only your adviser can judge your own tax position; the trustee and we cannot. Take them these four items:

• The draft trust instrument and any letter of wishes.
• A list of the assets you plan to transfer, with values.
• The countries where you and each beneficiary live and pay tax.
• Any plan to move, sell a business or change the beneficiaries.

Questions worth asking: what must I report, by when, and what follows when I receive a distribution? Does the trust need a US tax identification number? Does my home country tax what the trust earns?

Lawyer and adviser should talk to each other. We send both the same drafts, not summaries. When their views differ, ask them to settle the point in writing before you sign.

Sources and review dates

The facts here are the IRS statement on Form 706-NA, the Department of Taxation’s estate tax statement and NRS 111.1031 on the perpetuities period, all accessed on 2026-11-05.

Anything else here is general guidance or a matter for your lawyer. The date changes when the facts are checked again.

Behind the structure sit the rules on the law and features page. The set-up guide gives the steps, and the main guide the overview. To begin, ask for a quote.