Is Nevada the Delaware of Asset Protection?

Once a realm where where only the richest dared to dwell, more and more of the other 99% are looking into the world of asset protection.
And rightfully we should, as making money is only half of the battle. Holding onto the money you’ve made is the biggest challenge these days. As we see what little money we have being eaten up by taxes, fees, interest, and even lawsuits, we need to be more and more conscious of how to protect our assets.
Sensing this change, Nevada has taken a giant step forward in becoming the “go-to” place for asset protection.
Nevada enacted 2 laws that provide greater asset protection than you will find in most states, according to Mass Lawyers Weekly.  The first law contains a provision that allows trusts set up in other jurisdictions to be moved to Nevada without re-starting the applicable statute of limitations.  The second law makes charging orders the exclusive remedies for creditors against certain corporations, LLCs and LPs.
While it is not uncommon for states to recognize spendthrift trusts even though the settlor remains a discretionary beneficiary, the updated Nevada law broadens the type of spendthrift trusts available to explicitly include a charitable remainder trust, a grantor retained annuity trust and a qualified personal residence trust.  In addition, the new law extends that protection to trusts from other jurisdictions so that the spendthrift trust property is protected from future creditors after the two-year statute of limitations period has run, no matter what state the trust was established.  Moreover, under the new law, grantors can avoid any estate tax implications by excluding the trust from their estates because their self-settled spendthrift trust is viewed as a completed trust gift.
Second, the other, new law makes charging orders the sole remedy for creditors against Nevada LLCs, LPs and some corporations (non-public S and C corporations with one or more shareholders but fewer than 100.).  Charging orders are basically liens on the membership interests in LLCs and LPs and are usually worthless.  In addition, the new law does not give judges to option of issuing an equitable remedy.  Equitable remedies, like a constructive trust or a reverse veil piercing, allow a judge to do an end-run around statutes like the Nevada’s, because they make the entity’s assets available to the plaintiff where they would not have otherwise been available.
One caveat:  Courts in other states are usually more inclined to use the laws of their states in interpreting the protections of the Nevada trust or LLC.  Nevertheless, Nevada’s law may reverberate across the country.