Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, June 24, 2011

Nevada’s Restricted LLC and LP Law

Nevada_flag_map Steven J. Oshins, a nationally renowned estate planning and asset protection attorney from Las Vegas, authored a Nevada law in 2009 that creates two Nevada-exclusive business entities. The law creates Restricted Limited Partnerships and Restricted Limited Liability Companies and became effective on October 1, 2009.

Estate planners in Nevada now have the ability to design a LLC and LP using a raised valuation discount ceiling because the statute locks-up the entity’s entire assets for a ten-year period. The ten-year lock up is only a default provision though, and a draftsman can choose to lock assets for any number of years not to exceed ten. A draftsman can also elect to restrict only certain distributions, such as restricting all distributions apart from income.

When asked if he expected other states to enact similar Restricted LLC and LP statutes, Oshins said, “I expect certain, more proactive states to move forward with Restricted LLC and LP statutes. They'll have to do so in order to stop Nevada from having a monopoly on all valuation discount transfers. It will be interesting to see how the other states react to this over the next few years.”

Phil Kavesh, Interview with Steven J. Oshins, Esq. on Nevada Restricted LLC/LP, Wealth Strategies Journal, Jun. 22, 2011.

Special thanks to Jim Hillhouse, WealthCounsel, for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2011/06/nevadas-restricted-llc-and-lp-law.html

Estate Planning - Generally | Permalink

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