Section 166.015 of Nevadas Spendthrift Trust Act provides in part as follows:
Applicability of chapter; requirement of trustee if settlor is beneficiary of trust.
1. Unless the writing declares to the contrary, expressly, this chapter governs the construction, operation and enforcement, in this State, of all spendthrift trusts created in or outside this State if: (a) All or part of the land, rents, issues or profits affected are in this State; (b) All or part of the personal property, interest of money, dividends upon stock and other produce thereof, affected, are in this State; (c) The declared domicile of the creator of a spendthrift trust affecting personal property is in this State; or (d) At least one trustee qualified under subsection 2 has powers that include maintaining records and preparing income tax returns for the trust, and all or part of the administration of the trust is performed in this State.
This Act now allows settlor to create a trust under Nevada law that is protected from the creditors of the settlor. More specifically, under NRS §166.040(1)(b), the settlor of a Nevada self-settled spendthrift trust is protected: " if the writing is irrevocable, " does not require that any part of the income or principal of the trust be distributed to the settlor, " and was not intended to hinder, delay or defraud known creditors."
