Nevada is one of the best trust jurisdictions in the US. Nevada offers licensed family trust companies, unlicensed family trust companies, and retail trust companies. Nevada offers one of the best jurisdictions for asset protection trusts, directed trusts, and decanting. As one of the few states in the US which offers and validates electronically-signed trusts, Nevada is committed to being an innovative trust jurisdiction.
What is a family trust company?
“Family trust company” means a corporation or limited-liability company that: acts or proposes to act as a fiduciary; is organized or qualified to do business in this State to serve family members; and does not: transact trust company business with; propose to act as a fiduciary for; or solicit trust business from, a person who is not a family member. NRS 669.042
What is the minimum capital requirement for a licensed family trust company?
A licensed family trust company must not be organized or operated with a stockholders’ equity of less than $300,000. The full amount of the initial stockholders’ equity must be paid in cash, exclusive of all organization expenses, before the licensed family trust company is authorized to commence business as a licensed family trust company. NRS 669A-160
What are the requirements for a licensed family trust company?
In addition to other statutory and regulatory requirements, a licensed family trust company shall maintain:
(1) At least one officer of the licensed family trust company who is a resident of this State;
(2) A physical office in this State where original or true copies of all material business records and accounts of the licensed family trust company may be accessed and readily available for examination by the Division of Financial Institutions;
(3) A registered agent, with an office at the street address of the registered agent, in this State;
(4) All applicable state and local business licenses, registrations and permits; and
(5) A bank account with a state chartered or national bank having a principal or branch offices in this State. NRS 669A.14
Can a licensed family trust company operate without a trust company officer that is not a resident of Nevada?
No. A licensed family trust company shall maintain at least one officer of the licensed family trust company who is a resident of this State. NRS 669A.140
How frequent are regulatory examinations for licensed family trust company?
Each licensed family trust company shall undergo an off-site examination or an independent review more than 1 year but not more than 2 years after the date on which it license was issued; subsequent exam within 1 year if report of exam rates the trust company as “unsatisfactory” or “needs improvement; within 3 years if rated as “satisfactory.” NAC 660A-200
Where can I access the application for a Nevada licensed family trust company?
Nevada Licensed Family Trust Company-
Is a family trust company required to apply for a trust company license?
No. A family trust company is not required to be licensed. NRS 669A.110
Can an unlicensed family trust company advertise its services to the public or use the word “trust” or “trustee” in its name?
No. A family trust company formed and doing business under the laws of this State or any other state shall not: (a) Advertise its services to the public; or (b) Use the word “trust” or any direct derivative of that word as part of its name.
Does an unlicensed family trust company have any reporting obligation?
Yes. An unlicensed trust company must provide the Commissioner with the name of the “designated relative” sent by certified mail, return receipt requested. NRS 669A.050
What is the minimum capital requirement for a retail trust company?
No retail trust company may be organized or operated with a stockholders’ equity of less than $1,000,000, or in such greater amount as may be required by the Commissioner. NRS 669.100
What is the minimum number of board members which are needed for a retail trust company?
Five; although the Commissioner may authorize a retail trust company to be managed or controlled by no fewer than three directors or managers, as appropriate. NRS 669.116
What are the requirements for a retail trust company?
In addition to other statutory and regulatory requirements, a retail trust company in this State shall maintain its principal office in this State. The conditions for a retail for a retail trust company to fulfil this requirement include, but are not limited to the following:
(a) A verifiable physical office in this State that conducts such business operations in this State as are necessary to administer trusts in this State;
(b) The presence of an employee that is a resident of Nevada in the principal office who has experience that is satisfactory to the Commissioner in accepting and administering trusts;
(c) Maintenance of originals or true copies of all material business records and accounts of the retail trust company which may be accessed and are readily available for examination by the Division of Financial Institutions;
(d) Maintenance of any cash as a portion of the required stockholders’ equity pursuant to NRS 669.100 in accounts with one or more banks or other financial institutions located in this State;
(e) The provision of services to residents of this State consistent with the business plan provided by the trust company with its license application; and
(f) Such other conditions that the Commissioner may reasonably require to protect the public interest. NRS 669.083
How frequent are regulatory examinations for a retail trust company?Per NRS 669.250, the Commissioner shall examine a licensee as often as the Commissioner deems necessary. Generally, the Nevada Department of Financial Institutions will complete its first exam within the first year and annually thereafter.
Can a retail trust company operate without a trust company officer that is not a resident of Nevada?
No. A licensed trust company must have the presence of an employee that is a resident of Nevada in the principal office who has experience that is satisfactory to the Commissioner in accepting and administering trusts. NRS 669.083 Trust company applicants can submit an application without having named Nevada resident as trust officer, but the license will not be granted until an officer is in place.
What fees are due to the state for a retail trust company?
- Application and Initial Licensing: $3,000 (NAC 669.030, NAC 669.040)
- Annual Renewal: $1,500 (NAC 669.050)
- Examination fee: $75/hour; The average exam is 100 hours (NAC 669.010)
- CPA Assessment (annual): $300 (NAC 669.070)
- Attorney General Assessment (annual): amount determined annually; usually between $100-$400 (NRS 658.098)
Where can I access the application for a Nevada retail trust company?Nevada Retail Trust Company- https://fid.nv.gov/uploadedFiles/fidnvgov/content/Licensing/Trust_Company/TrustCompanyApplication.pdf