Last year, Nevada’s reputation as a good place to set up a family trust made worldwide headlines. That’s because media scion Rupert Murdoch and his oldest son Lachlan sought a modification of the Murdoch Family Trust held in Nevada.

This irrevocable asset-protection trust divides the assets, which include shares in News Corp. and Fox Corp. equally among the elder Murdoch’s four oldest children. The change sought would have placed the majority of it in the hands of Lachlan, whom Rupert has named successor to the family business and whose political views closely align with his father’s. This would have cemented his power over the future of the media empire. The attempt to modify the trust failed in court, with the attempt determined to be in “bad faith.” An appeal may be filed in the future.

So, what is it about Nevada’s asset-protection trusts that make them so appealing that they’re said to cumulatively contain billions of dollars? Even families who don’t own property or businesses in Nevada (and don’t have Murdoch-level wealth) establish their family trusts here.

Silence (or at least privacy)

Nevada is among the minority of states that allow “silent” trusts. The state has enacted laws to allow the names of both those who create family trusts (settlors) and beneficiaries to remain confidential. In fact, a court order is necessary to require the disclosure of these names by an attorney or anyone else.

“No exception creditors”

Nevada asset-protection trusts shield assets not just from creditors like mortgage lenders and credit card companies as well as ex-spouses. They also are protected against legal judgments in civil lawsuits. That can potentially save beneficiaries a lot of money.

Tax advantages

Nevada has no state or corporate income tax for those who live and/or do business in the state. It has no inheritance tax. That, too, can mean a lot of money can stay in the hands of beneficiaries that would go to taxes in other states.

As noted, a family doesn’t need to have Murdoch-level wealth to benefit from setting up an asset-protection trust in Nevada. To learn more about them and determine whether one is the best choice for you, it’s wise to get experienced Nevada estate planning guidance.