Asset protection is one of the most important yet misunderstood areas of estate and financial planning. Many people delay taking action to secure their assets simply because they’ve heard the wrong information — or haven’t heard anything at all. At Kutub Law, we specialize in Nevada Domestic Asset Protection Trusts (DAPTs) and hear these myths all the time.
Let’s set the record straight by debunking five of the most common misconceptions about asset protection trusts.
1. I’ll Lose Control of My Assets
This is one of the biggest concerns clients have when first learning about DAPTs — and one of the most misunderstood. While it’s true that an asset protection trust is irrevocable, that doesn’t mean you’re cut off from your assets entirely.
Nevada law allows the trust to be structured in a way that still provides discretionary access to the assets through distributions made by a trustee. The key is that you no longer have legal ownership, which is what provides the protection — but you can still benefit from the trust if it’s set up properly.
2. Asset Protection Trusts Are Only for the Ultra-Wealthy
Many people assume trusts are tools only used by multimillionaires. In reality, a Domestic Asset Protection Trust can benefit a wide range of individuals. If you own a business, work in a profession with legal liability, or have substantial personal assets like real estate or investments, you’re likely a good candidate.
Nevada DAPTs are increasingly used by mid- to high-income earners who want to ensure their financial stability in case of a lawsuit, divorce, or unforeseen event. You don’t need generational wealth to benefit from strong protection — you just need the right strategy.
3. I Have to Live in Nevada to Use a Nevada DAPT
This one’s flat-out false — and unfortunately, it keeps a lot of people from exploring their options. You do not have to be a Nevada resident to establish a Nevada Domestic Asset Protection Trust.
Nevada allows out-of-state individuals to create trusts under its jurisdiction, and you can even use a non-Nevada trustee. This flexibility is one of the reasons why Nevada DAPTs are the preferred choice across the country. At Kutub Law, our attorney is licensed in Nevada and works with clients nationwide to create secure, Nevada-based trusts.
4. Offshore Trusts Are Better Than Domestic Trusts
Offshore trusts are often marketed as having bulletproof protection — but the truth is more complicated. While foreign jurisdictions may have favorable laws on paper, these trusts are more expensive, subject to strict IRS scrutiny, and difficult to enforce in U.S. courts.
Domestic trusts, especially those based in Nevada, offer comparable protection with far fewer risks. They’re easier to manage, more transparent, and don’t carry the same regulatory red flags as offshore accounts. In almost all cases, a Nevada DAPT is the smarter, more secure choice.
5. I Can Wait Until I’m Facing a Lawsuit
Unfortunately, this is a costly mistake. Once a legal threat exists — whether it’s a lawsuit, creditor demand, or divorce — transferring assets into a trust can be viewed as a fraudulent conveyance. That means the trust won’t hold up in court, and your assets could still be exposed.
The key to effective asset protection is proactive planning. A Nevada DAPT must be created before any claims or legal issues arise. Think of it as an insurance policy — you hope you never need it, but it only works if it’s already in place when something happens.
Protecting Your Assets Starts with the Right Information
Misinformation and myths often stand in the way of taking meaningful action. By understanding what a Domestic Asset Protection Trust really is — and what it’s not — you can make an informed decision to safeguard what you’ve built.
At Kutub Law, we help individuals across the country take control of their financial future through Nevada-based trusts that are legally sound, court-tested, and tailored to your goals. If you’ve hesitated due to confusion or outdated advice, now is the time to get the facts — and the protection — you deserve.
Let’s talk about how a Nevada DAPT can work for you. Schedule a consultation today.