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He concluded, “The court did the right thing.  They said, listen, our legislature determined what the public policy was in our state and they specifically included it.  It’s a clear statute.”

That’s settled in Nevada now, providing protection to Nevada residents who set up self-settled spendthrift trusts.  The question is murkier for people who live elsewhere, though it may help if the assets in the trust are held in Nevada.  Say, for instance, that a court outside Nevada disregarded the protection against alimony and child support and allowed trust assets to be tapped. “If the assets are liquid assets that are also held in Nevada where the trust is domiciled, then anyone suing in another state would have to bring that judgment here,” says Larsen. “Then the question would be whether the court would actually enforce it or not, and you get into issues with the choice of law and one state recognizing another state’s judgments.”

“What the decision means is that we’re 100% certain that [self-settled spendthrift trusts] work as advertised for Nevada residents,” says Oshins. “We still don’t know with 100% certainty that it will be the result if the grantor or settlor of a trust is a resident of a different state.”

Source: How Nevada Became America’s Safest State for Wealth Protection | The WealthAdvisor