Nevada Trust Co. continues to add new clients

Nevada Trust Co. continues to expand its business as the independent trust, research and compliance services firm to registered investment adviser companies. The Las Vegas-based firm recently reached an affiliation agreement with Fraser Management Associates.

It’s the third affiliation for Nevada Trust, who formed similar partnerships with Rutherford Investment Management LLC in Portland, Ore., and Landmark Global Advisors in Las Vegas.

“The addition of Fraser brings one of the most respected, effective contrarian investment teams in the business,” Nevada Trust Vice President and Treasurer David Thorson said.

Fraser also owns the Contrary Opinion Forum, which gathers independent-minded individual and professional investors annually in Vergennes, Vt.

“Trusts in Nevada enjoy an unparalleled tax and regulatory climate,” said W. Alex Seagle, principal of Fraser Management Associates in Burlington, Vt. “In discussing this affiliation, our clients are astounded when they learn that state income taxes are virtually prohibited under the Nevada state constitution.”

Besides its investment business and forum, Fraser has collaborated with climatologist Evelyn Browning-Garriss to publish The Browning Newsletter. The monthly newsletter issues long-term climate forecasts that predicts the effect of climate changes on global markets.

Thorson said Nevada Trust was looking for additional registered investment adviser companies in key markets.

But business in Nevada is busy for privately held Nevada Trust. Thorson attributed the economic uncertainty and continued partisanship in Washington for his firm handling close to 30 asset-protection trusts in the first two weeks of 2013.

He said three years ago in Southern Nevada there might have been 17 trust companies; most were single-family offices. For economic reasons, most of those have either closed or are working with larger firms.

“We specialize in asset protection,” Thorson said. “Protection from litigation, protection against taxes and protection against inflation, which is the biggest thing most people have to worry about.”

Thorson said Nevada is unique because of its laws regulating the trust industry.

He said most states have a waiting period of four years or more for the trust to set up and take effect. In Nevada, that period is two years.

In 2005, the Nevada Legislature amended its statute governing trusts against perpetuities to 365 years. The new law created an opportunity for Nevada residents, and residents of other states, to pass assets in a Nevada dynasty trust that is not subject to estate taxes, creditors and divorcing spouses of the trust beneficiaries for 365 years.

Before the change, Nevada law limited the duration of a trust to approximately 90 to 120 years before the trustee would have to distribute the trust assets to the beneficiaries.

Nevada is one of only a few states with long perpetuities and no state income tax.

“With 365 years the life of a trust in Nevada, it allows people to take care of multiple generations,” Thorson said.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.